📊 ACA Key Takeaways
Is Arcosa, Inc. (ACA) a Good Investment?
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.
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
- 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
- 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
- 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
- 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 - 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%)
- 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
Strong liquidity with a 2.20x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $584.8M | $39.0M | $0.79 |
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 BUY from Claude (BUY) and ChatGPT (HOLD) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACA's key strengths?
Claude: 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. 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: 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. 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 $2.9B.
Does ACA pay dividends?
Arcosa, Inc. pays dividends, with $10.0M 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 $4.24.
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 April 2026, Arcosa, Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ACA stock overvalued or undervalued?
Valuation metrics for ACA: ROE of 7.9% (sector avg: 14%), net margin of 7.2% (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 BUY 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 $341.1M, with capital expenditures of $165.6M. FCF margin is 6.1%.
How does ACA compare to other Materials stocks?
Vs Materials sector averages: Net margin 7.2% (avg: 10%), ROE 7.9% (avg: 14%), current ratio 2.20 (avg: 1.6).