What is the AI rating for ACA?

Arcosa, Inc. (ACA) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of ACA?

Strong revenue growth at 12.2% YoY indicating market demand and operational scaling. Healthy profitability with 22.4% gross margin and 11.9% operating margin showing pricing power and operational efficiency. Robust free cash flow generation of $175.5M with 6.1% FCF margin, demonstrating conversion of earnings to cash

What are the risks of investing in ACA?

Low return on equity of 7.9% and ROA of 4.2% suggest capital efficiency challenges or margin compression relative to asset base. Significant capital expenditure requirements at $165.6M (5.7% of revenue) may limit cash available for growth or distribution. Modest net margin of 7.2% provides limited cushion against operational disruptions or cyclical downturns in industrial fabrication sector

ACA Stock Analysis - Arcosa, Inc. AI Rating & Fundamentals

Name: Arcosa, Inc. (ACA) Stock
Brand: Arcosa, Inc.
Rating: 4 (1 reviews)

Investment Thesis

Arcosa demonstrates solid fundamental strength with robust 12.2% revenue growth and healthy double-digit operating margins (11.9%), supported by strong free cash flow generation of $175.5M (6.1% FCF margin). The company maintains a conservative balance sheet with a 0.57x debt-to-equity ratio and adequate interest coverage of 4.1x, providing financial flexibility for investments or shareholder returns.

ACA Strengths

+ Strong revenue growth at 12.2% YoY indicating market demand and operational scaling
+ Healthy profitability with 22.4% gross margin and 11.9% operating margin showing pricing power and operational efficiency
+ Robust free cash flow generation of $175.5M with 6.1% FCF margin, demonstrating conversion of earnings to cash
+ Conservative leverage at 0.57x debt-to-equity with 4.1x interest coverage providing financial stability
+ Strong liquidity position with 2.20x current ratio and $214.6M cash on hand

ACA Risks

! Low return on equity of 7.9% and ROA of 4.2% suggest capital efficiency challenges or margin compression relative to asset base
! Significant capital expenditure requirements at $165.6M (5.7% of revenue) may limit cash available for growth or distribution
! Modest net margin of 7.2% provides limited cushion against operational disruptions or cyclical downturns in industrial fabrication sector
! High insider trading activity (15 Form 4 filings in 90 days) warrants monitoring for management confidence or potential concerns

Key Metrics to Watch

* Operating margin trend - monitor for sustainability of 11.9% margin given revenue growth
* Free cash flow conversion - track FCF margin maintenance and capital efficiency improvements
* Debt service capacity - watch interest coverage ratio and debt/equity ratio as leverage is utilized
* Return on equity - assess whether revenue growth translates to improved capital returns (currently 7.9%)

ACA Financial Metrics

Revenue

$2.9B

Net Income

$208.4M

EPS (Diluted)

$4.24

Free Cash Flow

$175.5M

Total Assets

$5.0B

Cash Position

$214.6M

ACA Profitability Ratios

Gross Margin 22.4%

Operating Margin 11.9%

Net Margin 7.2%

ROE 7.9%

ROA 4.2%

FCF Margin 6.1%

ACA Balance Sheet & Liquidity

Current Ratio

2.20x

Quick Ratio

1.35x

Debt/Equity

0.57x

Debt/Assets

47.0%

Interest Coverage

4.08x

Long-term Debt

$1.5B

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Data Source: SEC EDGAR | Analysis Date: Mar 19, 2026 | Data as of: 2025-12-31 | Powered by Claude AI