Arcosa, Inc. (ACA): Price and Financial Metrics

ACA Stock Price Chart Interactive Chart >

ACA Price/Volume Stats

Arcosa, Inc. (ACA) Company Bio

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 Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment offers natural and lightweight aggregates, trench shields, shoring products, and specialty milled or processed materials that are used in construction landscape, including commercial, industrial, road and bridge, and underground construction. It serves equipment rental dealers, as well as commercial, residential, and industrial contractors. The Energy Equipment Group segment provides structural wind towers for wind turbine producers; steel utility structures for electricity transmission and distribution; pressurized and non-pressurized tanks that store and transport various products, including propane, anhydrous ammonia, and natural gas liquids; and fertilizer storage containers for agricultural markets. The Transportation Products Group segment offers hopper barges, tank barges, fiberglass covers, hatches, castings, and winches for commercial marine transportation companies and industrial shippers; axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as for other industrial uses; and cast components for use in the industrial and mining sectors. The company was incorporated in 2018 and is headquartered in Dallas, Texas.

ACA Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for ACA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Arcosa Inc ranked in the 53th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Arcosa Inc, consider:

• The stock's equity weight, or the proportion of capital from equity relative to debt, is 92. Its equity weight surpasses that of 78.77% of free cash flow generating stocks in the Industrials sector.
• The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than just 24.7% of the free cash flow producing stocks we're observing.
• ACA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 38.25% of tickers in our DCF set.

For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ACA, try AOS, LMT, REVG, PFMT, and KSU.