ScoreWhy is ARC Resources Ltd. ?
1
High Management Efficiency with a high ROCE of 24.46%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 19.96
3
Healthy long term growth as Net Sales has grown by an annual rate of 39.46% and Operating profit at 179.51%
4
The company has declared positive results in Dec'2024 after 6 consecutive negative quarters
- NET PROFIT(HY) At CAD 792.54 MM has Grown at 82.89%
- RAW MATERIAL COST(Y) Fallen by -43.2% (YoY)
- DEBT-EQUITY RATIO (HY) Lowest at 24.03 %
5
With ROE of 17.13%, it has a attractive valuation with a 1.76 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 16.07%, its profits have risen by 35.4% ; the PEG ratio of the company is 0.3
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ARC Resources Ltd. should be less than 10%
- Overall Portfolio exposure to Oil should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ARC Resources Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
ARC Resources Ltd.
5.5%
16.05
30.35%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
39.46%
EBIT Growth (5y)
179.51%
EBIT to Interest (avg)
19.96
Debt to EBITDA (avg)
0.44
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.67
Tax Ratio
22.88%
Dividend Payout Ratio
37.04%
Pledged Shares
0
Institutional Holding
2.58%
ROCE (avg)
24.46%
ROE (avg)
22.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.80
EV to EBIT
9.83
EV to EBITDA
5.26
EV to Capital Employed
1.71
EV to Sales
2.83
PEG Ratio
0.28
Dividend Yield
NA
ROCE (Latest)
17.36%
ROE (Latest)
17.13%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
NET PROFIT(HY)
At CAD 792.54 MM has Grown at 82.89%
RAW MATERIAL COST(Y)
Fallen by -43.2% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 24.03 %
INVENTORY TURNOVER RATIO(HY)
Highest at 679.13%
DIVIDEND PER SHARE(HY)
Highest at CAD 11.52
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for ARC Resources Ltd.
Net Profit
At CAD 792.54 MM has Grown at 82.89%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
Debt-Equity Ratio
Lowest at 24.03 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 679.13%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at CAD 11.52
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Raw Material Cost
Fallen by -43.2% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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