ARCE:NSD-Arco Platform Limited (USD)

COMMON STOCK | Education & Training Services | NSD

Last Closing Price

USD 39.90

Change

-0.22 (-0.55)%

Market Cap

USD 2.20B

Volume

0.14M

Average Target Price

USD 56.50 (+41.60%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. The company's curriculum solutions provide educational content from basic to secondary education K-12 curriculum in printed and digital formats delivered through its platform. As of March 31, 2020, it had a network consisted of 5,414 partner schools and 1,362,141 enrolled students. The company's activities also comprise editing, publishing, advertising, and sale of educational content for private schools. It serves students, teachers, administrators, and parents. Arco Platform Limited was founded in 2004 and is based in Sao Paulo, Brazil.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-09-28 )

Largest Industry Peers for Education & Training Services

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
LOPE Grand Canyon Education, Inc

+0.66 (+0.79%)

USD3.93B 15.54 10.72
LAUR Laureate Education, Inc

+0.06 (+0.46%)

USD2.72B 10.96 48.87
AFYA Afya Limited

+1.05 (+4.05%)

USD2.41B 50.85 5.09
STRA Strategic Education, Inc

-0.09 (-0.09%)

USD2.32B 18.07 7.23
TWOU 2U, Inc

+0.59 (+1.68%)

USD2.26B N/A N/A
HLG Hailiang Education Group Inc

+1.29 (+2.71%)

USD1.23B 22.30 2.13
APEI American Public Education, Inc

+0.63 (+2.26%)

USD0.41B 31.38 5.84
REDU RISE Education Cayman Ltd

+0.11 (+1.87%)

USD0.33B 390.26 3.10
ASPU Aspen Group, Inc

+0.38 (+3.50%)

USD0.24B N/A N/A
HMHC Houghton Mifflin Harcourt Comp..

+0.06 (+3.61%)

USD0.22B N/A 5.22

ETFs Containing ARCE

Symbol Name Weight Mer Price(Change) Market Cap
BRF VanEck Vectors Brazil Sma.. 0.00 % 0.63 %

-0.58 (-3.40%)

USD0.05B

Market Performance

  Market Performance vs.
Industry/Classification (Education & Training Services)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -9.73% 50% F 47% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -9.73% 50% F 46% F
Trailing 12 Months  
Capital Gain -21.29% 40% F 33% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -21.29% 40% F 31% F
Trailing 5 Years  
Capital Gain N/A N/A N/A N/A N/A
Dividend Return N/A N/A N/A N/A N/A
Total Return N/A N/A N/A N/A N/A
Average Annual (5 Year Horizon)  
Capital Gain 29.10% N/A N/A 84% B
Dividend Return N/A N/A N/A N/A N/A
Total Return 29.10% N/A N/A 84% B
Risk Return Profile  
Volatility (Standard Deviation) 45.36% N/A N/A 26% F
Risk Adjusted Return 64.16% N/A N/A 80% B-
Market Capitalization 2.20B 69% D+ 80% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Education & Training Services)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 828.63 8% F 1% F
Price/Book Ratio 7.35 6% F 17% F
Price / Cash Flow Ratio -289.47 100% A+ 98% A+
EV/EBITDA 21.54 17% F 32% F
Management Effectiveness  
Return on Equity -3.34% 63% D 49% F
Return on Invested Capital 6.46% 75% C 67% D+
Return on Assets 2.48% 56% F 71% C-
Debt to Equity Ratio 2.13% 89% B+ 87% B+
Technical Ratios  
Short Ratio 3.71 50% F 44% F
Short Percent 5.64% 33% F 36% F
Beta 0.73 53% F 74% C
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector