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Why Arcontech Group Plc (LON:ARC) Is An Attractive Stock On Right Now

Arcontech Group Plc (LON:ARC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ARC, it is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Arcontech Group here.

Flawless balance sheet with proven track record

ARC delivered a satisfying double-digit returns of 8.78% in the most recent year Unsurprisingly, ARC surpassed the industry return of 8.26%, which gives us more confidence of the company’s capacity to drive earnings going forward. ARC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ARC manages its cash and cost levels well, which is a crucial insight into the health of the company. ARC currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

AIM:ARC Income Statement June 25th 18
AIM:ARC Income Statement June 25th 18

Next Steps:

For Arcontech Group, I’ve compiled three essential factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for ARC’s future growth? Take a look at our free research report of analyst consensus for ARC’s outlook.

  2. Valuation: What is ARC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ARC is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ARC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.