📊 ACA Key Takeaways
Is Arcosa, Inc. (ACA) a Good Investment?
Arcosa demonstrates solid revenue growth at 12.2% YoY, but severe profitability deterioration with net income nearly flat at 0.2% growth signals operational margin compression despite top-line expansion. Weak capital returns (ROE 1.4%, ROA 0.8%) and tight interest coverage (2.0x) indicate poor asset deployment efficiency, offset partially by strong liquidity and reasonable leverage positioning.
Arcosa shows solid fundamental stability with double-digit revenue growth, positive free cash flow, and strong liquidity, indicating a resilient operating base. However, profit conversion remains mixed because net income was essentially flat year over year despite higher sales, while leverage and only moderate interest coverage limit flexibility. Overall, the business appears fundamentally sound but not strong enough on profitability quality to justify a more aggressive rating.
Why Buy Arcosa, Inc. Stock? ACA Key Strengths
- Solid revenue growth of 12.2% YoY demonstrates market demand and pricing power
- Strong liquidity with current ratio of 2.31x and quick ratio of 1.60x provides financial flexibility
- Moderate leverage at 0.57x Debt/Equity allows capacity for strategic investments or debt reduction
- Revenue growth of 12.2% year over year indicates healthy end-market demand and execution
- Liquidity is strong with a 2.20x current ratio and 1.35x quick ratio, supporting near-term financial flexibility
- Free cash flow of $175.5M and an 11.9% operating margin show the business is generating real cash from operations
ACA Stock Risks: Arcosa, Inc. Investment Risks
- Severe earnings-to-revenue growth divergence (net income +0.2% vs revenue +12.2%) indicates gross or operating margin compression requiring investigation
- Critically low returns on equity (1.4%) and assets (0.8%) suggest fundamental capital efficiency problems or asset impairment issues
- Interest coverage ratio of 2.0x is tight with limited cushion for revenue fluctuations or unexpected costs in cyclical fabricated metals sector
- Net income growth of only 0.2% despite higher revenue suggests margin pressure, cost inflation, or weaker earnings quality
- Long-term debt of $1.51B and interest coverage of 4.1x leave less room if operating conditions soften
- Returns remain moderate with 7.9% ROE and 4.2% ROA, which limits evidence of strong capital efficiency
Key Metrics to Watch
- Operating margin trend and gross margin composition to identify source of profitability pressure
- Free cash flow conversion and capital expenditure efficiency as percentage of revenue growth
- Interest coverage ratio movements in relation to debt levels and operational cash flow sustainability
- Operating margin and net margin progression
- Free cash flow generation relative to debt and capital expenditure needs
Arcosa, Inc. (ACA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 5.0% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.31x current ratio provides a solid financial cushion.
ACA Profit Margin, ROE & Profitability Analysis
ACA vs Materials Sector: How Arcosa, Inc. Compares
How Arcosa, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arcosa, Inc. Stock Overvalued? ACA Valuation Analysis 2026
Based on fundamental analysis, Arcosa, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arcosa, Inc. Balance Sheet: ACA Debt, Cash & Liquidity
ACA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arcosa, Inc.'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.26 reflects profitable operations.
ACA Revenue Growth, EPS Growth & YoY Performance
ACA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $547.6M | $23.6M | $0.48 |
| Q3 2025 | $640.4M | $16.6M | $0.34 |
| Q2 2025 | $664.7M | $45.6M | $0.93 |
| Q1 2025 | $598.6M | $23.6M | $0.48 |
| Q3 2024 | $591.7M | $16.6M | $0.34 |
| Q2 2024 | $584.8M | $40.9M | $0.84 |
| Q1 2024 | $549.2M | $39.2M | $0.80 |
| Q3 2023 | $591.7M | $32.0M | $0.66 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arcosa, Inc. Dividends, Buybacks & Capital Allocation
ACA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arcosa, Inc. (CIK: 0001739445)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACA
What is the AI rating for ACA?
Arcosa, Inc. (ACA) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACA's key strengths?
Claude: Solid revenue growth of 12.2% YoY demonstrates market demand and pricing power. Strong liquidity with current ratio of 2.31x and quick ratio of 1.60x provides financial flexibility. ChatGPT: Revenue growth of 12.2% year over year indicates healthy end-market demand and execution. Liquidity is strong with a 2.20x current ratio and 1.35x quick ratio, supporting near-term financial flexibility.
What are the risks of investing in ACA?
Claude: Severe earnings-to-revenue growth divergence (net income +0.2% vs revenue +12.2%) indicates gross or operating margin compression requiring investigation. Critically low returns on equity (1.4%) and assets (0.8%) suggest fundamental capital efficiency problems or asset impairment issues. ChatGPT: Net income growth of only 0.2% despite higher revenue suggests margin pressure, cost inflation, or weaker earnings quality. Long-term debt of $1.51B and interest coverage of 4.1x leave less room if operating conditions soften.
What is ACA's revenue and growth?
Arcosa, Inc. reported revenue of $571.7M.
Does ACA pay dividends?
Arcosa, Inc. pays dividends, with $2.4M distributed to shareholders in the trailing twelve months.
Where can I find ACA SEC filings?
Official SEC filings for Arcosa, Inc. (CIK: 0001739445) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACA's EPS?
Arcosa, Inc. has a diluted EPS of $0.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Arcosa, Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ACA stock overvalued or undervalued?
Valuation metrics for ACA: ROE of 1.4% (sector avg: 14%), net margin of 6.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ACA stock in 2026?
Our dual AI analysis gives Arcosa, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACA's free cash flow?
Arcosa, Inc.'s operating cash flow is $71.9M, with capital expenditures of $43.5M. FCF margin is 5.0%.
How does ACA compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.6% (avg: 10%), ROE 1.4% (avg: 14%), current ratio 2.31 (avg: 1.6).