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 35.98% and Operating profit at 45.47%
4
Flat results in Jun 26
- INTEREST(HY) At CAD 83.8 MM has Grown at 69.64%
- OPERATING PROFIT MARGIN(Q) Lowest at 42.69 %
5
With ROE of 17.15%, it has a attractive valuation with a 1.97 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 19.63%, its profits have risen by 15.9% ; the PEG ratio of the company is 0.6
6
Majority shareholders : FIIs
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?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
ARC Resources Ltd.
17.46%
17.81
36.00%
S&P/TSX 60
29.63%
2.33
12.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
35.98%
EBIT Growth (5y)
45.47%
EBIT to Interest (avg)
20.82
Debt to EBITDA (avg)
0.47
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.57
Tax Ratio
22.16%
Dividend Payout Ratio
35.57%
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
26.05%
ROE (avg)
22.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.97
EV to EBIT
10.84
EV to EBITDA
5.73
EV to Capital Employed
1.73
EV to Sales
3.10
PEG Ratio
0.58
Dividend Yield
NA
ROCE (Latest)
15.94%
ROE (Latest)
17.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 3,304.2 MM
RAW MATERIAL COST(Y)
Fallen by -3.44% (YoY
DIVIDEND PER SHARE(HY)
Highest at CAD 10.47
NET SALES(Q)
Highest at CAD 2,174 MM
-11What is not working for the Company
INTEREST(HY)
At CAD 83.8 MM has Grown at 69.64%
OPERATING PROFIT MARGIN(Q)
Lowest at 42.69 %
Here's what is working for ARC Resources Ltd.
Operating Cash Flow
Highest at CAD 3,304.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
Highest at CAD 2,174 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Net Sales
At CAD 2,174 MM has Grown at 35.95%
over average net sales of the previous four periods of CAD 1,599.07 MMMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Dividend per share
Highest at CAD 10.47
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Raw Material Cost
Fallen by -3.44% (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
Here's what is not working for ARC Resources Ltd.
Interest
At CAD 83.8 MM has Grown at 69.64%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Operating Profit Margin
Lowest at 42.69 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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