Arc Resources Ltd: A Tale of Two Numbers

Arc Resources Ltd, a Canadian energy company, just dropped some bombshell numbers in its Q2 2025 earnings call. The company’s production growth is nothing short of impressive, but don’t let that fool you - the real story is in the numbers.

The company’s stock price has been on a wild ride, swinging between 21.44 CAD and 31.56 CAD over the past 52 weeks. But what’s the real value of this stock? As of the last close, the price stood at 26.19 CAD. That’s a far cry from its peak, but still a decent chunk of change.

But let’s get to the numbers that really matter. Arc Resources Ltd has a price-to-earnings ratio of 10.379 and a price-to-book ratio of 1.84. These numbers are crucial in determining the company’s valuation. And here’s the thing: they’re not exactly screaming “buy me!”

  • Price-to-earnings ratio: 10.379 - a number that suggests the company’s stock is undervalued, but not by much.
  • Price-to-book ratio: 1.84 - a number that indicates the company’s stock is trading at a premium to its book value.

So what does it all mean? In short, Arc Resources Ltd’s production growth is a nice-to-have, but the real story is in the numbers. And those numbers are telling us that this stock is not as hot as it seems.