Arco Platform Ltd
NASDAQ:ARCE
Intrinsic Value
Arco Platform Ltd. is engaged in the provision of the educational services. [ Read More ]
The intrinsic value of one
ARCE
stock under the Base Case scenario is
19.2
USD.
Compared to the current market price of 13.98 USD,
Arco Platform Ltd
is
Undervalued by 27%.
Arco Platform Ltd's market capitalization is 927.4m USD.
ARCE stock price is 13.98 USD.
ARCE stock price (13.98 USD) is 27% less than its Intrinsic Value (19.2 USD).
ARCE stock price (13.98 USD) is 49% less than its Relative Value (27.48 USD). Open Relative Valuation
ARCE has upside potential of 29% compared to the average analyst price target.
Open Wall St Estimates
ARCE's ROIC (Return on Invested Capital) has decreased in the last 3 years from 3% to 3%.
ARCE has positive Operating Income for the last twelve months.
ARCE's ROE (Return on Equity) has decreased in the last 3 years from 1% to -1%.
ARCE's short-term assets (2B BRL) exceed its short-term liabilties (1B BRL).
ARCE's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 3%.
ARCE's Revenue has grown by an exceptional 30% over the past 12 months.
ARCE's ROE (Return on Equity) for the past 12 months is negative and is equal to -1%.
ARCE's Revenue is forecast to grow at a rate of 25% per year over the next 3 years.
ARCE's long-term assets (6B BRL) exceed its long-term liabilties (4B BRL).
ARCE has negative Net Income for the last twelve months.
ARCE has a very low three-year average ROIC (Return on Invested Capital): 2%. The company is not efficient at using invested capital to generate operating income.
ARCE's D/E (Debt to Equity) is very low and is equal to 0.67.
ARCE has negative three-year average ROE (Return on Equity): -1%. The company is not efficient at transforming stockholders' equity into net income.
ARCE's Revenue has been growing by an exceptional 34% per year for the last 3 years.
ARCE has positive Net Debt. This means that the company has more debt (2B BRL) than cash and short-term investments (517m BRL).
ARCE has positive Gross Profit for the last twelve months.
ARCE has negative Free Cash Flow for the last twelve months.
ARCE's Altman Z-Score is very low and is equal to 1.14.
ARCE doesn't generate enough operating income (270m BRL) to safely cover interest payments on its debt (375m BRL).
Valuation Backtest
Arco Platform Ltd
Run backtest to discover the historical profit from buying and selling
ARCE
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Arco Platform Ltd
Balance Sheet Decomposition
Arco Platform Ltd
| Current Assets | 1.8B |
| Cash & Short-Term Investments | 517.4m |
| Receivables | 902.6m |
| Other Current Assets | 420.2m |
| Non-Current Assets | 4.6B |
| Long-Term Investments | 55.3m |
| PP&E | 113.5m |
| Intangibles | 3.9B |
| Other Non-Current Assets | 569.3m |
| Current Liabilities | 1.5B |
| Accounts Payable | 1B |
| Accrued Liabilities | 138.7m |
| Other Current Liabilities | 281.4m |
| Non-Current Liabilities | 2.2B |
| Long-Term Debt | 1.8B |
| Other Non-Current Liabilities | 420.6m |
Earnings Waterfall
Arco Platform Ltd
|
Revenue
|
1.9B
BRL
|
|
Cost of Revenue
|
-645.5m
BRL
|
|
Gross Profit
|
1.3B
BRL
|
|
Operating Expenses
|
-1B
BRL
|
|
Operating Income
|
269.7m
BRL
|
|
Other Expenses
|
-303m
BRL
|
|
Net Income
|
-33.3m
BRL
|
Free Cash Flow Analysis
Arco Platform Ltd
ARCE Profitability Score
Profitability Due Diligence
Arco Platform Ltd's profitability score is 47/100. The higher the profitability score, the more profitable the company is.
Score
Arco Platform Ltd's profitability score is 47/100. The higher the profitability score, the more profitable the company is.
ARCE Solvency Score
Solvency Due Diligence
Arco Platform Ltd's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Score
Arco Platform Ltd's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ARCE Price Targets Summary
Arco Platform Ltd
According to Wall Street analysts, the average 1-year price target for
ARCE
is 18.01 USD
.
Shareholder Return
ARCE Price
Arco Platform Ltd
| Average Annual Return | -6.97% |
| Standard Deviation of Annual Returns | 40.19% |
| Max Drawdown | -86% |
| Market Capitalization | 927.4m USD |
| Shares Outstanding | 66 340 000 |
| Percentage of Shares Shorted | 2.47% |
Company Profile
Arco Platform Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Arco Platform Ltd. is engaged in the provision of the educational services. The company is headquartered in Sao Paulo, Sao Paulo and currently employs 2,986 full-time employees. The company went IPO on 2018-09-26. The firm develops educational solutions focuses on content, educational technology, supplemental programs and specialized services. The company serves to more than 1,360,000 students and over 5,400 private schools throughout the whole Brazilian territory, including all segments of education, from kindergarten to high school. The company provides platforms that integrate the student engagement in the educational ecosystem, tools and methods.
Contact
IPO
Employees
Officers
The intrinsic value of one
ARCE
stock under the Base Case scenario is
19.2
USD.
Compared to the current market price of 13.98 USD,
Arco Platform Ltd
is
Undervalued by 27%.
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