Last Updated: 14 Nov 2024
Executive Summary
ARC Document Solutions Inc. (ARC) is a reprographics company that offers document solutions. The company has a market capitalization of $146.23 million and its latest stock price is $3.38. ARC has a trailing PE ratio of 30.73 and a forward PE ratio of 19.88. The company's analyst target price is $4.35 and its analyst rating is Strong Buy.
Company Overview
ARC Document Solutions, Inc. is a reprographics company that offers document solutions. The company is headquartered in San Ramon, California. ARC's services include document imaging, printing, scanning, and copying. The company also offers document management solutions, such as document storage, retrieval, and destruction. ARC's customers include businesses, government agencies, and educational institutions.
Fundamental Analysis
ARC's financial performance has been mixed in recent years. The company's revenue has declined in each of the past three years. However, ARC's profitability has improved in recent quarters. The company's gross profit margin has increased from 29.6% in 2021 to 33.2% in 2023. ARC's operating margin has also increased from 0.9% in 2021 to 1.99% in 2023.
ARC's balance sheet is relatively strong. The company has $23.2 million in cash and equivalents and $14.7 million in debt. ARC's debt-to-equity ratio is 0.63, which is below the industry average.
Technical Analysis
ARC's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 30.35, which indicates that the stock is oversold.
Short Term Outlook
ARC's stock price is likely to remain under pressure in the short term. The company's revenue is declining and its profitability is still relatively low. The stock's technical indicators also suggest that the stock is oversold.
Long Term Outlook
ARC's long-term outlook is more positive. The company's document solutions business is still growing and the company's financial performance is improving. The stock's analyst target price is $4.35, which suggests that the stock has upside potential.
Analyst Recommendations
The majority of analysts recommend buying ARC's stock. The company's Strong Buy rating indicates that analysts believe that the stock is undervalued and has upside potential.
