ARC Document Solutions Inc

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ARC : NYSE : Services
$4.33 -0.09 | -2.04%
Today's Range: 4.31 - 4.43
Avg. Daily Volume: 142900.0
06/27/17 - 4:02 PM ET

Financial Analysis


ARC DOCUMENT SOLUTIONS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. ARC DOCUMENT SOLUTIONS INC has average liquidity. Currently, the Quick Ratio is 1.26 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 decreased by 24.48% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)98.73103.55
EBITDA ($mil)12.8314.06
EBIT ($mil)4.586.07
Net Income ($mil)1.782.57


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)19.6716.79
Total Assets ($mil)365.31465.96
Total Debt ($mil)154.34167.0
Equity ($mil)153.2202.88


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin38.4739.03
EBITDA Margin12.9913.57
Operating Margin4.635.86
Sales Turnover1.10.92
Return on Assets-13.3120.42
Return on Equity-31.7546.91
Debt Q1 FY17 Q1 FY16
Current Ratio1.711.63
Debt/Capital0.50.45
Interest Expense1.561.45
Interest Coverage2.944.2


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)46.3346.47
Div / share0.00.0
EPS0.040.05
Book value / share3.314.37
Institutional Own % n/a n/a
Avg Daily Volume141200.096550.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.32 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 4.89. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ARC DOCUMENT SOLUTIONS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ARC NM Peers 34.54   ARC 3.68 Peers 15.30

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

ARC's P/E is negative making this valuation measure meaningless.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ARC 13.27 Peers 26.18   ARC NA Peers 1.53

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 discount to its peers.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ARC 1.32 Peers 4.89   ARC -153.26 Peers 50.44

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ARC 0.51 Peers 2.47   ARC -6.17 Peers 14.64

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 industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ARC significantly trails its peers on the basis of sales growth

 

 

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