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Arcosa, Inc.

ACA

Fabricated Structural Metal Products

Mkt Cap

$3.908B

PE

24.64

Debt

$579.9M

Cash

$104.8M

EV

$4.383B

FCF

$57.5M

Market Cap

$3.908B

P/E Ratio

24.64

Debt

$579.9M

Cash

$104.8M

EV

$4.383B

FCF

$57.5M
Charts data: {"Earnings":[{"time":"2016-12-30","value":123000000},{"time":"2017-12-30","value":89700000},{"time":"2018-12-30","value":75500000},{"time":"2019-12-30","value":112200000},{"time":"2020-12-30","value":105800000},{"time":"2021-12-30","value":69200000},{"time":"2022-12-30","value":244800000},{"time":"2023-12-30","value":158600000}],"Sales":[{"time":"2016-12-30","value":1704000000},{"time":"2017-12-30","value":1462400000},{"time":"2018-12-30","value":1460400000},{"time":"2019-12-30","value":1736900000},{"time":"2020-12-30","value":1935600000},{"time":"2021-12-30","value":2036400000},{"time":"2022-12-30","value":2242800000},{"time":"2023-12-30","value":2307900000}],"Net Margins":[{"time":"2016-12-30","value":0.0721830985915493},{"time":"2017-12-30","value":0.06133752735229759},{"time":"2018-12-30","value":0.05169816488633251},{"time":"2019-12-30","value":0.06459784673844206},{"time":"2020-12-30","value":0.05466005373010953},{"time":"2021-12-30","value":0.033981536043999214},{"time":"2022-12-30","value":0.10914927768860354},{"time":"2023-12-30","value":0.06872048182330256}],"Assets":[{"time":"2016-12-30","value":1526300000},{"time":"2017-12-30","value":1602500000},{"time":"2018-12-30","value":2172200000},{"time":"2019-12-30","value":2302500000},{"time":"2020-12-30","value":2646700000},{"time":"2021-12-30","value":3188100000},{"time":"2022-12-30","value":3340600000},{"time":"2023-12-30","value":3577900000}],"Stockholders Equity":[{"time":"2016-12-30","value":1341800000},{"time":"2017-12-30","value":1407900000},{"time":"2018-12-30","value":1684500000},{"time":"2019-12-30","value":1790400000},{"time":"2020-12-30","value":1892200000},{"time":"2021-12-30","value":1953300000},{"time":"2022-12-30","value":2184400000},{"time":"2023-12-30","value":2332000000}],"ROE":[{"time":"2016-12-30","value":0.09166790877925175},{"time":"2017-12-30","value":0.06371191135734072},{"time":"2018-12-30","value":0.0448204214900564},{"time":"2019-12-30","value":0.06266756032171582},{"time":"2020-12-30","value":0.05591375118909206},{"time":"2021-12-30","value":0.03542722572057544},{"time":"2022-12-30","value":0.11206738692547152},{"time":"2023-12-30","value":0.06801029159519725}],"ROA":[{"time":"2016-12-30","value":0.13155998165498264},{"time":"2017-12-30","value":0.08218408736349454},{"time":"2018-12-30","value":0.04373446275665224},{"time":"2019-12-30","value":0.06640608034744842},{"time":"2020-12-30","value":0.05735444137983149},{"time":"2021-12-30","value":0.03365640977384649},{"time":"2022-12-30","value":0.10447225049392325},{"time":"2023-12-30","value":0.0607339500824506}]}

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in North America. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment provides utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.

Sector

  • PRLB Logo

    PRLB

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$57.5M$48.45M$40.83M$34.4M$28.99M$24.43M$20.58M$17.34M$14.61M$12.31M$10.38M$103.8M
DCF$42.13M$30.87M$22.62M$16.57M$12.14M$8.898M$6.52M$4.777M$3.5M$2.565M$25.65M
Value$176.2M

In the chart Earnings are multiplied by this value.

Earnings Growth 15%
Earnings Stability -3%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin7.2%6.1%5.2%6.5%5.5%3.4%11%6.9%6.9%
ROA13%8.2%4.4%6.6%5.7%3.4%10%6.1%6.1%
ROE9.2%6.4%4.5%6.3%5.6%3.5%11%6.8%6.8%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.38%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.57%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.11%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.5%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +6.32%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.7%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF-0.012.520.411.478.6115.7210.0910.09
Debt Equity-0.000.110.060.140.360.260.250.25
MIN
Graham Stability---100%100%71%100%100%71%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 10.09.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 2.60.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.71.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12-201612-201812-202012-2022Trend
Revenue4.4%9.6%6%2.9%2.1%
Net Income3.7%16%14%-35%15%
Stockholders Equity8.2%6.7%7.2%6.8%-0.47%
FCF-12%-4.8%-31%58%-4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.58%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.07%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +16%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +15.41%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.72%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.47%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -4.84%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -4.03%.