Arcosa (ACA) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: 0.2%
• Average Volume (3M): 221.88K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.53
• 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: 231,305
• 30 Day Avg. Volume: 221,878
• 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: 1.26
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: 11.12
• 1Y Price Target: $110.00
• Price Target Upside: 11.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.98
• Revenue Forecast (FY): $2.88B

• Rating: 72 Outperform
• Price Target: $113.00 ▲(14.76% Upside)

Arcosa's overall stock score is driven by strong earnings performance and positive technical indicators, suggesting a bullish outlook. The company's robust financial health and successful strategic acquisitions further enhance its growth potential. However, the high valuation and low dividend yield present some risks, which slightly temper the overall score.

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 primarily through the sale of its infrastructure products and services across its different segments. The Construction Products segment contributes significantly to revenue by selling concrete and aggregates for construction projects. The Energy segment earns income from manufacturing components for renewable energy projects, particularly wind energy, which has seen increased demand due to the shift towards sustainable energy sources. The Transportation segment provides logistics and transportation services, further diversifying revenue streams. The company also benefits from strategic partnerships with construction firms and renewable energy companies, which enhance its market presence and facilitate large-scale projects, thereby boosting 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: 98.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 98.47 is above the 20-day moving average (MA) of 97.57, above the 50-day MA of 95.09, and above the 200-day MA of 89.52, indicating a bullish trend. The MACD of 1.52 indicates Positive momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.36 is Neutral, 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	$5.32B	18.08	9.80%	1.81%	-1.01%	-12.13%
ACA	72 Outperform	$4.80B	32.39	5.91%	0.20%	13.96%	14.86%
GVA	70 Outperform	$4.30B	28.95	16.87%	0.51%	6.87%	64.56%
NPO	64 Neutral	$4.42B	51.55	5.80%	0.54%	6.44%	101.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	54 Neutral	$4.26B	―	-4.05%	2.29%	19.40%	-120.47%
SPR	41 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

Arcosa Corporate Events

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.

The most recent analyst rating on (ACA) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Arcosa stock, see the ACA Stock Forecast page.

Arcosa’s Earnings Call Highlights Record Growth and Strategic Success

Arcosa’s recent earnings call painted a picture of robust growth and strategic success, marked by record financial metrics and effective acquisition integration. Despite facing some challenges, such as weather-related impacts and uncertainties in wind tower orders, the company’s overall sentiment was positive, emphasizing its strong positioning in key sectors like construction and utility structures.

Arcosa Reports Record Second Quarter 2025 Results

Arcosa, Inc., headquartered in Dallas, Texas, is a prominent provider of infrastructure-related products and solutions, operating primarily in the construction, engineered structures, and transportation markets. The company is known for its strategic growth initiatives and focus on enhancing its portfolio through acquisitions and divestitures.