Arcosa (ACA) AI Stock Analysis

• Market Cap: $5.44B
• Dividend Yield: 0.18%
• Average Volume (3M): 238.79K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 1.48
• Revenue Growth: 13.96%
• EPS Growth: 14.86%
• Country: US
• Employees: 6,250
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 1.56
• Shares Outstanding: 49,045,025
• 10 Day Avg. Volume: 191,638
• 30 Day Avg. Volume: 238,788
• PEG Ratio: -1.22
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 15.05
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: 11.12
• 1Y Price Target: $110.00
• Price Target Upside: -2.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.98
• Revenue Forecast (FY): $2.88B

• Rating: 71 Outperform
• Price Target: $118.00 ▲(4.44% Upside)

Arcosa's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting significant growth and strategic achievements. Technical indicators suggest bullish momentum, though caution is warranted due to potential overvaluation and overbought signals. Corporate events further support the company's strategic direction.

Positive Factors

Revenue Growth

The significant revenue growth in Q3 demonstrates Arcosa's strong market position and effective execution of its growth strategy, indicating potential for sustained expansion.

Strategic Acquisitions

The successful integration of the Stavola acquisition enhances Arcosa's market presence and operational scale, supporting long-term profitability and competitive advantage.

Cash Flow and Debt Management

Effective cash flow management and reduced leverage improve financial stability, providing Arcosa with greater flexibility for future investments and growth opportunities.

Negative Factors

Organic Volume Decline

Declining organic volumes in aggregates suggest potential challenges in maintaining growth momentum, which could impact future revenue streams if not addressed.

Production Downtime

Unplanned production downtime affects cost efficiency and operational reliability, potentially hindering Arcosa's ability to meet demand and maintain margins.

Residential Market Weakness

Weakness in the residential market could limit growth in construction products, affecting Arcosa's revenue diversification and exposing it to sector-specific risks.

Arcosa Business Overview & Revenue Model

Company Description

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, energy, 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 trench shields and shoring products for residential and non-residential construction, agriculture, specialty building products, as well as for infrastructure related projects. The Engineered Structures segment provides utility structures, wind towers, traffic and lighting structures, telecommunication structures, storage and distribution tanks for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets, as well as for gas and liquids storage and transportation for residential, commercial, energy, agriculture, and industrial markets. The Transportation Products segment offers inland barges; fiberglass barge covers, winches, and other components; cast components for industrial and mining sectors; and axles, circular forgings, 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.

How the Company Makes Money

Arcosa generates revenue through several key streams, primarily from the sale of its manufactured products and services. The company's major revenue sources include its Construction Products segment, which produces aggregates, concrete, and precast concrete products; the Energy segment, which supplies wind turbine components and offers related services; and the Infrastructure segment, which provides water infrastructure products and solutions. Additionally, Arcosa benefits from significant partnerships with construction firms, energy companies, and government entities, which help secure long-term contracts and project-based revenue. The company's focus on sustainable practices and innovative product offerings also positions it favorably in the growing renewable energy market, contributing to its overall earnings.

Arcosa Financial Statement Overview

Summary

Arcosa demonstrates solid financial performance with consistent revenue growth and stable margins. The balance sheet is robust with moderate leverage, and cash flow generation is improving. While profitability metrics show potential for enhancement, the overall financial health of the company is strong, positioning it well for future growth in the industrial infrastructure sector.

Income Statement

Arcosa's income statement shows a positive trajectory with a consistent revenue growth rate of 5.88% in the TTM period. The gross profit margin has improved to 21.61%, indicating better cost management. However, the net profit margin remains modest at 5.25%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have seen slight fluctuations, with the TTM EBIT margin at 7.12% and EBITDA margin at 13.28%, reflecting stable operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.62, indicating moderate leverage. The return on equity (ROE) in the TTM period is 5.98%, showing a slight improvement but still below optimal levels. The equity ratio is stable, suggesting a balanced asset structure. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Arcosa's cash flow statement indicates a positive free cash flow growth rate of 6.93% in the TTM period, highlighting improved cash generation. The operating cash flow to net income ratio is 0.81, showing strong cash conversion. However, the free cash flow to net income ratio of 0.67 suggests that there is room for enhancing cash flow efficiency relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83B	2.57B	2.31B	2.24B	2.04B	1.94B
Gross Profit	612.30M	515.20M	443.80M	411.10M	355.90M	382.00M
EBITDA	542.10M	395.90M	383.50M	501.30M	251.30M	263.30M
Net Income	148.60M	93.70M	159.20M	245.80M	69.60M	106.60M
Balance Sheet
Total Assets	5.05B	4.92B	3.58B	3.34B	3.19B	2.65B
Cash, Cash Equivalents and Short-Term Investments	220.00M	187.30M	104.80M	160.40M	72.90M	95.80M
Total Debt	1.58B	1.75B	606.80M	587.20M	707.30M	254.50M
Total Liabilities	2.47B	2.49B	1.25B	1.16B	1.23B	754.50M
Stockholders Equity	2.58B	2.43B	2.33B	2.18B	1.95B	1.89B
Cash Flow
Free Cash Flow	314.60M	312.30M	57.50M	36.30M	81.40M	177.80M
Operating Cash Flow	469.30M	502.00M	261.00M	174.30M	166.50M	259.90M
Investing Cash Flow	-1.32B	-1.51B	-285.80M	90.70M	-570.30M	-528.20M
Financing Cash Flow	312.20M	1.09B	-30.80M	-177.50M	380.90M	123.70M

Arcosa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 112.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACA, the sentiment is Positive. The current price of 112.98 is above the 20-day moving average (MA) of 104.82, above the 50-day MA of 98.80, and above the 200-day MA of 90.12, indicating a bullish trend. The MACD of 3.27 indicates Negative momentum. The RSI at 78.99 is Negative, neither overbought nor oversold. The STOCH value of 88.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACA.

Arcosa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKR	76 Outperform	$6.10B	20.71	9.80%	1.57%	-1.01%	-12.13%
ACA	71 Outperform	$5.44B	36.69	5.91%	0.18%	13.96%	14.86%
GVA	70 Outperform	$4.30B	28.95	16.87%	0.47%	6.87%	64.56%
HRI	67 Neutral	$4.75B	―	-4.05%	1.96%	19.40%	-120.47%
NPO	64 Neutral	$4.54B	52.89	5.80%	0.55%	6.44%	101.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPR	51 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

Arcosa Corporate Events

Arcosa Updates Investor Presentation on Strategic Moves

Arcosa, Inc. has updated its investor presentation materials to reflect its ongoing strategic transformation and long-term vision. The company has made significant investments, including the acquisition of Stavola, to enhance its profitability and market presence in the construction materials sector, particularly in the northeastern United States. This move is part of Arcosa’s strategy to reduce business complexity and cyclicality while expanding its growth platforms and maintaining a healthy balance sheet.

Arcosa Updates Investor Presentation on Strategic Growth

Arcosa, Inc. has updated its investor presentation materials to reflect its strategic transformation and growth initiatives. The company completed the divestiture of its Steel Components business in August 2024 and acquired Stavola, enhancing its construction materials operations. These moves are part of Arcosa’s long-term vision to reduce business complexity, integrate sustainability, and improve returns on capital, positioning it strongly in the infrastructure market.