Arcosa, Inc. (ACA)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Arcosa, Inc. trades at USD145.00, which is 18% below the USD171.71 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 36 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 32.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Arcosa, Inc.
Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in the United States. The company operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty and other products, as well as for infrastructure construction. The Engineered Structures segment offers utility structures, wind towers, traffic and lighting structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. This segment also sells its products to contractors and distributors serving state Departments of Transportation and state and municipality agencies. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and other transportation and industrial equipment to the commercial marine transportation companies, lessors, and industrial shippers. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.
ACA passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
11 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Impax Asset Management, Impax Asset Management Group plc$18.20M · 0.1% of book
- Select Equity Group, Select Equity Group, L.P.$15.54M · 0.1% of book
- First Eagle, First Eagle Investment Management, LLC$13.44M · 0.0% of book
- Ken Fisher, Fisher Asset Management, LLC$11.14M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$4.38M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Arcosa, Inc. (ACA) undervalued?
Against our discounted cash flow estimate of USD171.71, ACA at USD145.00 is 18% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ACA?
11 of the institutions we track reported a position in ACA in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ACA's P/E ratio?
ACA trades at 32.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for ACA, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.