Fundamental analysis: ARC Document Solutions, Inc. (ARC)

Awarener score: 6.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Average) and growth (Bottom), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.5

Business has been shrinking at a very fast pace. It's been substantially worse when measured against peer companies.
ARC Document Solutions, Inc. business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 5.8

ARC profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly better than rival companies.
Business profit on sales tends to be sufficient. It's similar to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain a slight improvement compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still slightly better than similar companies.
Profits -before income taxes- are usually sufficient considering total sales, and remain similar to rivals.
Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 4.1

ARC Document Solutions, Inc. profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
In past years, profits -before income taxes- grew at a low speed. It was somewhat worse than rivals.
In the previous years, growth trend on total net profit has been good, and almost average when measured against peer companies.
Earnings per share have grown at a good rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 2.0

ARC had to pay too much income taxes in relation to profits made in the past years. It's been mediocre against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.5

ARC Document Solutions, Inc. usually gets good returns on the resources it controls. It proves encouraging in relation to peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
There's usually some profitability -in relation to owned resources-. It ranks similar to competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 7.8

ARC usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands encouraging in relation to rival firms.
The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is substantially worse when measured against industry peers.
In the past twelve months it paid excellent dividends, considering the current stock price. It came top-notch against competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved in good shape compared to similar firms.
Dividend payments usually represent a minor portion of genuine funds generation and are most likely safe. Sustainability looks well ranked against comparable companies.
The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands impressive in relation to rivals.
The company uses a slight portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could most likely increase stockholder rewards if it wished to do so. It still looks encouraging in relation to competitors.

Balance Sheet score: 5.8

ARC Document Solutions, Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be a slight improvement compared to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains mediocre against rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks almost average when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is slightly better than similar enterprises.
Usually, sales are on a two-months credit. It still ranks similar to peers.
Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as rather normal in relation to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be slightly worse than peers.
On average pays suppliers two months after the purchase. It ranks similar to industry peers.
The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's rather normal in relation to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands somewhat better than rival firms.
Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 7.4

ARC Document Solutions, Inc. looks reasonable in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands well ranked against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still great when measured against industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
The company is indebted, it should focus on loan repayment. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks more than average in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks close to average when compared to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains better than most peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still impressive in relation to peer companies.

Total score: 5.4

Company at a glance: ARC Document Solutions, Inc. (ARC)

Sector, industry: Industrials, Specialty Business Services

Market Cap: 0.13 billions

Revenues TTM: 0.29 billions

ARC Document Solutions, Inc., a digital printing company, provides digital printing and document-related services in the United States. It provides managed print services, that places, manages, and optimizes print and imaging equipment in customers' offices, job sites, and other facilities; and cloud-based document management software and other digital hosting services. The company also provides professional services and software services to re-produce and distribute large-format and small-format documents, and specialized graphic color printing. In addition, it engages in sale and supply of equipment; and provides ancillary services. The company operates 146 service centers in the United States, Canada, China, United Kingdom, India, United Arab Emirates. It serves local restaurant owners, construction subcontractors, international retailers, regional energy companies, and largest school districts, as well as retail, technology, energy, education, hospitality, and public utilities. The company was formerly known as American Reprographics Company and changed its name to ARC Document Solutions, Inc. in 2012. ARC Document Solutions, Inc. was founded in 1988 is headquartered in San Ramon, California.