ARC Document Solutions Inc.
Find Ratings ReportsARC DOCUMENT SOLUTIONS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ARC DOCUMENT SOLUTIONS INC has average liquidity. Currently, the Quick Ratio is 1.29 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 68.88 | 68.82 |
EBITDA ($mil) | 7.67 | 8.84 |
EBIT ($mil) | 3.57 | 4.01 |
Net Income ($mil) | -0.89 | 2.12 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 56.09 | 52.56 |
Total Assets ($mil) | 310.12 | 307.32 |
Total Debt ($mil) | 99.52 | 99.74 |
Equity ($mil) | 154.07 | 154.36 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 38.1 | 40.69 |
EBITDA Margin | 11.13 | 12.84 |
Operating Margin | 5.19 | 5.83 |
Sales Turnover | 0.91 | 0.93 |
Return on Assets | 2.65 | 3.6 |
Return on Equity | 5.35 | 7.19 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.53 | 1.48 |
Debt/Capital | 0.39 | 0.39 |
Interest Expense | 0.33 | 0.47 |
Interest Coverage | 10.73 | 8.61 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 42.78 | 43.1 |
Div / share | 0.05 | 0.05 |
EPS | -0.02 | 0.05 |
Book value / share | 3.6 | 3.58 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 147872.0 | 127443.0 |
HOLD. ARC DOCUMENT SOLUTIONS INC's P/E ratio indicates a significant discount compared to an average of 43.53 for the Administrative and Support Services subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 0.73 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 7.95. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, ARC DOCUMENT SOLUTIONS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ARC 14.61 | Peers 43.53 | ARC 3.08 | Peers 25.21 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ARC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ARC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ARC 8.22 | Peers 24.78 | ARC 0.40 | Peers 0.97 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ARC is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ARC trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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ARC 0.73 | Peers 7.95 | ARC -33.34 | Peers 38.01 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ARC is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ARC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ARC 0.40 | Peers 6.82 | ARC -1.69 | Peers 20.15 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ARC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ARC significantly trails its peers on the basis of sales growth. |
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