Arcosa (ACA) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: 0.22%
• Average Volume (3M): 212.10K
• Price to Earnings (P/E): 49.9
• Beta (1Y): 1.41
• Revenue Growth: 9.78%
• EPS Growth: -37.71%
• Country: US
• Employees: 6,250
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 1.27
• Shares Outstanding: 49,044,907
• 10 Day Avg. Volume: 207,478
• 30 Day Avg. Volume: 212,096
• PEG Ratio: -1.22
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 15.05
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 10.42
• Enterprise Value/Ebitda: 12.84
• 1Y Price Target: $108.00
• Price Target Upside: 17.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $102.00 ▲(10.50% Upside)

Arcosa's overall stock score is driven by strong earnings call performance, highlighting record revenue and EBITDA growth and successful strategic initiatives. Financial performance is stable, but challenges in profitability and leverage management persist. Technical analysis and valuation indicate caution due to mixed signals and high P/E ratio.

Arcosa Business Overview & Revenue Model

Company Description

Arcosa, Inc. (ACA) is a leading provider of infrastructure-related products and services in the United States. The company operates through several segments, including Construction Products, Energy, and Transportation. Arcosa's core offerings encompass a wide range of products such as concrete pipes, aggregates, and wind turbine components, as well as services related to logistics and transportation.

How the Company Makes Money

Arcosa generates revenue primarily through the sale of its infrastructure products and services across its different segments. The Construction Products segment contributes significantly to revenue by selling concrete and aggregates for construction projects. The Energy segment earns income from manufacturing components for renewable energy projects, particularly wind energy, which has seen increased demand due to the shift towards sustainable energy sources. The Transportation segment provides logistics and transportation services, further diversifying revenue streams. The company also benefits from strategic partnerships with construction firms and renewable energy companies, which enhance its market presence and facilitate large-scale projects, thereby boosting earnings.

Arcosa Financial Statement Overview

Summary

Arcosa demonstrates stable financial performance with consistent revenue growth and improved operational efficiency. However, challenges remain in maintaining profitability margins and managing increasing leverage. Cash flow generation is positive, but the conversion of income to cash could be improved.

Income Statement

Arcosa's income statement shows a consistent revenue growth trend with a TTM revenue growth rate of 2.77%. The gross profit margin has improved slightly to 20.82% in the TTM period, indicating efficient cost management. However, the net profit margin has decreased to 3.45%, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins have shown improvement, reflecting better operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.68, which is manageable but has increased over the years, suggesting rising leverage. Return on equity is relatively low at 3.77%, indicating limited profitability from equity. The equity ratio stands at 50.61%, showing a balanced capital structure but with room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 16.98% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio has decreased to 0.84, suggesting potential challenges in converting income to cash. The free cash flow to net income ratio is strong at 0.66, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.57B	2.31B	2.24B	2.04B	1.94B
Gross Profit	557.10M	515.20M	443.80M	411.10M	355.90M	382.00M
EBITDA	451.80M	395.90M	383.50M	501.30M	251.30M	263.30M
Net Income	92.20M	93.70M	159.20M	245.80M	69.60M	106.60M
Balance Sheet
Total Assets	4.89B	4.92B	3.58B	3.34B	3.19B	2.65B
Cash, Cash Equivalents and Short-Term Investments	189.70M	187.30M	104.80M	160.40M	72.90M	95.80M
Total Debt	1.68B	1.75B	606.80M	587.20M	679.50M	254.50M
Total Liabilities	2.41B	2.49B	1.25B	1.16B	1.23B	754.50M
Stockholders Equity	2.47B	2.43B	2.33B	2.18B	1.95B	1.89B
Cash Flow
Free Cash Flow	294.20M	312.30M	57.50M	36.30M	81.40M	177.80M
Operating Cash Flow	443.70M	502.00M	261.00M	174.30M	166.50M	259.90M
Investing Cash Flow	-1.30B	-1.51B	-285.80M	90.70M	-570.30M	-528.20M
Financing Cash Flow	943.40M	1.09B	-30.80M	-177.50M	380.90M	123.70M

Arcosa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 92.31
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACA, the sentiment is Negative. The current price of 92.31 is above the 20-day moving average (MA) of 92.27, below the 50-day MA of 94.95, and above the 200-day MA of 89.51, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 74.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACA.

Arcosa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKR	72 Outperform	$5.23B	17.08	10.52%	1.82%	-2.01%	-9.95%
GVA	71 Outperform	$4.63B	35.33	15.89%	0.50%	7.18%	77.84%
ACA	70 Outperform	$4.59B	49.93	3.74%	0.22%	9.78%	-37.71%
NPO	70 Outperform	$4.88B	58.03	5.78%	0.54%	4.99%	169.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	57 Neutral	$4.27B	148.78	1.41%	2.14%	11.41%	-92.67%
SPR	41 Neutral	$4.57B	―	―	―	-2.60%	-94.76%

Arcosa Corporate Events

Arcosa Updates Investor Presentation on Strategic Growth

Arcosa, Inc. has updated its investor presentation materials to reflect its strategic transformation and growth initiatives. The company completed the divestiture of its Steel Components business in August 2024 and acquired Stavola, enhancing its construction materials operations. These moves are part of Arcosa’s long-term vision to reduce business complexity, integrate sustainability, and improve returns on capital, positioning it strongly in the infrastructure market.

The most recent analyst rating on (ACA) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Arcosa stock, see the ACA Stock Forecast page.

Arcosa’s Earnings Call Highlights Record Growth and Strategic Success

Arcosa’s recent earnings call painted a picture of robust growth and strategic success, marked by record financial metrics and effective acquisition integration. Despite facing some challenges, such as weather-related impacts and uncertainties in wind tower orders, the company’s overall sentiment was positive, emphasizing its strong positioning in key sectors like construction and utility structures.

Arcosa Reports Record Second Quarter 2025 Results

Arcosa, Inc., headquartered in Dallas, Texas, is a prominent provider of infrastructure-related products and solutions, operating primarily in the construction, engineered structures, and transportation markets. The company is known for its strategic growth initiatives and focus on enhancing its portfolio through acquisitions and divestitures.