# ARC Resources Ltd. (ARX.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Energy / Oil, Gas & Consumable Fuels. Price C$33.91, market value C$19.2 billion.

## Valuation
- **P/E (trailing): 13.7×** (5-yr avg 8.9×, 3-yr avg 10.6×). ARC Resources Ltd. trades at 13.7× trailing earnings, well above its own five-year average of 8.9×: investors are paying up relative to the company's past. The Energy median in the September 2026 study was 16.8×. Forward P/E is 14.4×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.87**. A PEG of 0.87 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.5×**. Enterprise value is 6.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 7.4%** (5-yr avg 10.9%). Free cash flow equals 7.4% of the market value, below its five-year average of 10.9%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 7.3%**. The inverse of the P/E: 7.3% of the price is earned each year.

## Profitability
- **Gross margin: 40.7%**. ARC Resources Ltd. keeps 40.7% of revenue after the direct cost of what it sells.
- **Operating margin: 26.6%**. 26.6% of revenue is left after running the business, an exceptional level.
- **Net margin: 21.0%**. 21.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.4%**. 15.4% on shareholders' equity is solid.
- **Return on invested capital: 11.5%**. Return on all capital, debt included, is 11.5%.
- **Return on assets: 9.0%**. Each dollar of assets produces 9.0% of profit.

## Growth
- **Revenue growth (1 yr): 19.2%** (3-yr -11.1%/yr, 5-yr 39.9%/yr). Revenue grew 19.2% over the last year, against 39.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 16.5%** (3-yr -14.2%/yr). Earnings per share rose 16.5%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): -19.5%/yr**. Free cash flow has compounded at -19.5% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.58**. Debt is 0.58 times equity, moderate leverage.
- **Net debt / EBITDA: 1.3×**. It would take 1.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.1×**. Operating profit covers interest 11.1× over, a safe margin.
- **Current ratio: 0.70** (quick 0.69). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.99**. A Z-score of 2.99 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.48%** (C$0.82 per share, trailing). ARC Resources Ltd. yields 2.48%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 35%** (32% of free cash flow). 35% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 21.1%/yr** (1-yr 11.4%). The dividend has compounded at 21.1% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: hold** (10 analysts). 10 analysts cover ARC Resources Ltd.; the consensus is hold, with an average price target of C$32.46 (-4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 32.2%** (YTD 33.6%, 3-mo 7.8%). The shares are up 32.2% over twelve months including dividends.
- **From 52-week high: -1.4%** (60.4% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): -0.26** (volatility 35%). Beta of -0.26 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ARX.TO · Page: https://foliofundamentals.com/stocks/arx.to

Not investment advice.