ARCE:NSD-Arco Platform Limited (USD)

COMMON STOCK | Education & Training Services | NSD

Last Closing Price

USD 26.56

Change

-0.66 (-2.42)%

Market Cap

USD 1.57B

Volume

0.25M

Average Target Price

USD 32.50 (+22.36%)
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, 2021, it had a network consisted of 6,119 partner schools and 1,785,576 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 1941 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: 2021-05-10 )

Largest Industry Peers for Education & Training Services

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

-0.14 (-0.15%)

USD4.38B 16.74 13.27
TWOU 2U, Inc

-1.65 (-4.37%)

USD2.80B N/A N/A
LAUR Laureate Education, Inc

+0.17 (+1.22%)

USD2.73B 22.08 16.78
AFYA Afya Limited

+0.91 (+4.22%)

USD2.02B 53.87 3.97
STRA Strategic Education, Inc

+1.88 (+2.43%)

USD1.91B 29.86 8.39
HMHC Houghton Mifflin Harcourt Comp..

-0.49 (-5.00%)

USD1.25B N/A 5.22
HLG Hailiang Education Group Inc

-0.40 (-0.82%)

USD1.23B 18.11 1.70
APEI American Public Education, Inc

-0.36 (-1.17%)

USD0.58B 24.66 8.56
TEDU Tarena International, Inc

-0.03 (-0.78%)

USD0.21B 337.20 N/A
REDU RISE Education Cayman Ltd

-0.05 (-1.45%)

USD0.19B 390.26 3.10

ETFs Containing ARCE

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

-0.13 (-0.58%)

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 -25.16% 33% F 13% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -25.16% 33% F 13% F
Trailing 12 Months  
Capital Gain -52.43% 12% F 4% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -52.43% 6% F 4% 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 16.10% 47% F 65% D
Dividend Return N/A N/A N/A N/A N/A
Total Return 16.10% 47% F 64% D
Risk Return Profile  
Volatility (Standard Deviation) 46.11% 59% F 38% F
Risk Adjusted Return 34.91% 47% F 55% F
Market Capitalization 1.57B 74% C 70% C-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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 477.54 7% F 4% F
Price/Book Ratio 3.56 32% F 45% F
Price / Cash Flow Ratio 16.97 21% F 27% F
EV/EBITDA 5.02 67% D+ 85% B
Management Effectiveness  
Return on Equity 0.88% 50% F 53% F
Return on Invested Capital 5.34% 47% F 67% D+
Return on Assets 2.31% 53% F 69% D+
Debt to Equity Ratio 9.24% 73% C 73% C
Technical Ratios  
Short Ratio 3.76 26% F 36% F
Short Percent 3.89% 53% F 46% F
Beta 0.88 47% F 68% D+
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:
Positive cash flow

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

Positive free cash flow

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

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

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.

Overpriced on cashflow basis

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

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Low Earnings Growth

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