Simple Concepts Research Group

Investors Remain Bullish On ARC Document Solutions (ARC)

by | Oct 4, 2021 | Stock Picks

ARC Document Solutions (ARC) Company Overview & Stock Price Forecast

This article provides a brief analysis and stock rating for ARC Document Solutions (ARC) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.

Updated October 2021
ARC Document Solutions Fundamentals

ARC Document Stock Rating

Stock Price Target: $5.81

In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for ARC Document Solutions in comparison to the Office Equipment & Services industry and the S&P 500.

ARC Document Solutions is a Micro Cap company with a Market Cap of $124.6M.

Earnings Yield

ARC DocumentOffice EquipmentS&P 500T-Bill (10Y)

The current earnings yield for ARC Document is 38.02%, in comparison to 2.94% for the S&P 500 and 1.51% for the 10-year treasury bond. The median earnings yield for the Office Equipment industry is 11.64%.

Price/Earnings Ratio

ARC DocumentOffice EquipmentS&P 500

ARC Document is currently trading at a P/E of 17.08. The P/E for the Office Equipment industry is 48.04 and the P/E for the S&P 500 is 34.01.


ARC DocumentOffice EquipmentS&P 500

ARC Document is currently trading at a P/S of 0.43. The P/S for the Office Equipment industry is 0.85 and the P/S for the S&P 500 is 3.09.


ARC DocumentOffice EquipmentS&P 500

ARC Document is currently trading at a P/B of 4.00. The P/B for the Office Equipment industry is 2.60 and the P/B for the S&P 500 is 4.58.

Return on Invested Capital (ROIC)

ARC DocumentOffice EquipmentS&P 500

ARC Document ROIC is currently 49.06% in comparison to 8.48% for the Office Equipment industry and 8.6% for the S&P 500.

YTD Performance

ARC DocumentOffice EquipmentS&P 500

The YTD performance for ARC Document is 96.62%. The Office Equipment industry has a YTD performance of 14.77% in comparison to the YTD S&P 500 performance of 17.14%.
Note: YTD performance data for Office Equipment industry is limited to May 2021.

Recent Financial Results

  • Net sales of $68.8 million (7% increase compared to the second quarter of 2020)
  • Cash & cash equivalents of $52.4 million
  • Architectural, engineering, construction and building (AEC/O) customers comprised approximately 67% of total net sales (customers outside of construction contributed 33% total net sales)
  • Construction document sales (CDIM) increased 4.9% compared to prior year (sales for color graphics services driven by demands of businesses re-opening as opposed to sales of COVID-related products and services)
  • Managed print services (MPS) sales increased 10.9% YoY
  • Archiving and information management sales (AIM) increased 23.9% YoY
  • Equipment and supplies sales increased 1.3% YoY

Stock Price Target: $5.81

Company Overview

COMPANY Stock Rating

ARC Document Solutions offers managed print services and document distribution for a variety of businesses, particularly in commercial real estate, construction and design. The company also resells printing and imaging equipment to architectural, engineering, and construction firms (in addition to providing equipment service and maintenance).

The company offers the following services.

  • Offsite Services – this service is geared toward local customers with high-volume, project-related printing
  • Specialized Color Printing – this service offers color printing, finishing, and assembly of graphic materials for regional and national retailers, schools, franchises, marketing departments and theme parks (most recently public health and safety graphics related to the COVID-19 pandemic)
  • Managed Print Services – an on site service where the company places and manages print and imaging equipment in a customers’ office / job locations
  • Archive and Information Management – this service is used to scan and store a customers’ information and intellectual property in a secure cloud-based digital archive (powered by AWS)
  • Web-Based Document Management Applications – a suite of proprietary tools, such as SKYSITE and the ARC Print app, that facilitate project collaboration and management
  • Equipment and Supplies Sales – the company sells equipment and supplies, primarily to customers in the architectural industry

ARC Document Solutions was founded in 1989 and is headquartered in Walnut Creek, CA. The current CEO is Kumarakulasingam Suriyakumar.

Be sure to add ARC Document Solutions (ARC) to your Watch List and if you haven’t done so already, check in on the performance of our Current Portfolio. Keep it simple and always do your due diligence.

This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.