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 buy?
- 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.
7.97%
16.05
30.35%
S&P/TSX 60
23.72%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
40.10%
EBIT Growth (5y)
103.96%
EBIT to Interest (avg)
19.96
Debt to EBITDA (avg)
0.44
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.59
Tax Ratio
22.88%
Dividend Payout Ratio
35.57%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
24.46%
ROE (avg)
22.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.93
EV to EBIT
10.83
EV to EBITDA
5.71
EV to Capital Employed
1.68
EV to Sales
3.11
PEG Ratio
0.26
Dividend Yield
NA
ROCE (Latest)
15.53%
ROE (Latest)
17.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly 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 3,093.5 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 46.32%
DIVIDEND PER SHARE(HY)
Highest at CAD 8.44
NET SALES(Q)
Highest at CAD 1,645.8 MM
-7What is not working for the Company
INTEREST(HY)
At CAD 85.9 MM has Grown at 36.57%
RAW MATERIAL COST(Y)
Grown by 14.31% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 47.26 %
Here's what is working for ARC Resources Ltd.
Dividend per share
Highest at CAD 8.44 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Operating Cash Flow
Highest at CAD 3,093.5 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Dividend Payout Ratio
Highest at 46.32% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Net Sales
Highest at CAD 1,645.8 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Depreciation
Highest at CAD 451.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for ARC Resources Ltd.
Interest
At CAD 85.9 MM has Grown at 36.57%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Debt-Equity Ratio
Highest at 47.26 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 14.31% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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