ARC Resources (ARX.TO)

Energy · TSX · Canada

C$31.75+2.72% today

Fundamentals

Market capC$17.61B

P/E ratio12.3

Dividend yield2.70%

Revenue growth (YoY)+19.6%

Profit margin22.7%

Return on equity17.4%

52-week rangeC$21.14 to C$32.58

Next earnings2026-04-28

Valuation and ratings

DCF fair valueC$68.40

Upside to fair value+115.4%

Analyst target (mean)C$32.82

Analyst rangeC$31.00 to C$39.00

Analysts covering17

Consensus viewhold

Moat score79/100

Overall rating82/100, Strong Buy

ARC Resources trades at C$31.75, which is 115% below the C$68.40 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 79 out of 100, which is a wide 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 12.3 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 ARC Resources

ARC Resources Ltd. acquires and develops crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney assets located in Alberta and northeast British Columbia. The company was founded in 1996 and is based in Calgary, Canada.

Industry: Oil & Gas E&PHQ: Canada

ARX.TO passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow

Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.

Quality at a fair price

Good businesses, not cheap ones. A wide moat and a strong rating, at a multiple that has not run away.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

Growing dividend payers

A modest yield attached to a growing business beats a large yield attached to a shrinking one, every time, over any horizon that matters.

Growth at a reasonable price

Real growth, without the multiple that usually comes attached to it. The middle ground between value and growth, and the hardest place to find anything.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Common questions

Is ARC Resources (ARX.TO) undervalued?

Against our discounted cash flow estimate of C$68.40, ARX.TO at C$31.75 is 115% 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.

What is ARX.TO's P/E ratio?

ARX.TO trades at 12.3 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 ARX.TO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

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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.