Latest Ratios: P/E Ratio -1.7x · EV/EBITDA 34.5x · ROE -27.3%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $95M | $136M | $273M | $87M | $45M | $122M | $99M | $193M | $211M | $207M | $205M |
| Enterprise Value | $126M | $167M | $294M | $73M | $-9153210 | $54M | $100M | $230M | $267M | $176M | $178M |
| P/E Ratio → | -1.74 | — | — | — | — | 2.02 | — | 5.44 | 5.99 | 7.49 | 2.13 |
| P/S Ratio | 0.79 | 1.13 | 2.50 | 0.87 | 0.44 | 1.22 | 1.47 | 2.75 | 8.83 | 4.56 | 4.06 |
| P/B Ratio | 0.55 | 0.81 | 1.26 | 0.49 | 0.32 | 0.83 | 1.16 | 1.78 | 3.11 | 2.82 | 2.70 |
| P/FCF | — | — | — | — | — | 6.17 | 2.10 | 3.55 | 5.74 | 5.64 | 10.43 |
| P/OCF | — | — | 26.05 | — | — | 4.70 | 1.84 | 3.10 | 5.67 | 5.57 | 10.28 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.38 | 2.70 | 0.74 | -0.09 | 0.54 | 1.49 | 3.29 | 11.15 | 3.88 | 3.53 |
| EV / EBITDA | 34.49 | 45.76 | 44.27 | — | — | 4.22 | — | — | 136.73 | — | — |
| EV / EBIT | — | — | — | — | — | 0.70 | — | 4.21 | 5.56 | 3.20 | 4.27 |
| EV / FCF | — | — | — | — | — | 2.73 | 2.12 | 4.23 | 7.25 | 4.80 | 9.06 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.9% | 27.9% | 36.2% | 32.1% | 21.9% | 34.6% | 25.2% | 29.5% | 70.9% | 28.0% | -1.0% |
| Operating Margin | -6.7% | -6.7% | -1.8% | -13.4% | -11.7% | 4.8% | -60.8% | -21.2% | 5.1% | -9.1% | -26.2% |
| Net Profit Margin | -43.7% | -43.7% | -4.7% | -12.3% | -8.7% | 60.2% | -30.1% | 50.7% | 147.6% | 61.1% | 190.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -27.3% | -27.3% | -2.6% | -7.7% | -6.2% | 52.0% | -21.0% | 40.3% | 50.0% | 37.0% | 126.8% |
| ROA | -20.4% | -20.4% | -2.0% | -5.9% | -4.9% | 36.4% | -12.7% | 20.8% | 28.2% | 29.1% | 89.8% |
| ROIC | -2.8% | -2.8% | -0.7% | -8.0% | -11.0% | 4.4% | -26.5% | -8.3% | 1.1% | -6.8% | -20.2% |
| ROCE | -3.8% | -3.8% | -0.9% | -7.2% | -7.5% | 3.6% | -34.3% | -11.4% | 1.2% | -5.2% | -15.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.22 | 0.22 | 0.16 | 0.18 | 0.09 | 0.07 | 0.32 | 0.46 | 1.09 | — | — |
| Debt / EBITDA | 10.27 | 10.27 | 5.18 | — | — | 0.82 | — | — | 37.97 | — | — |
| Net Debt / Equity | — | 0.18 | 0.10 | -0.08 | -0.39 | -0.46 | 0.01 | 0.35 | 0.82 | -0.42 | -0.35 |
| Net Debt / EBITDA | 8.46 | 8.46 | 3.14 | — | — | -5.34 | — | — | 28.46 | — | — |
| Debt / FCF | — | — | — | — | — | -3.45 | 0.02 | 0.69 | 1.51 | -0.84 | -1.37 |
| Interest Coverage | -20.48 | -20.48 | -0.62 | -3.01 | -24.92 | 52.06 | -2.52 | 7.63 | 22.33 | 18.20 | 8.25 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.04 | 1.04 | 1.17 | 3.75 | 4.42 | 4.79 | 1.46 | 1.20 | 1.47 | 5.36 | 1.64 |
| Quick Ratio | 0.66 | 0.66 | 0.74 | 2.90 | 3.68 | 4.44 | 1.22 | 0.80 | 0.93 | 5.35 | 1.64 |
| Cash Ratio | 0.16 | 0.16 | 0.30 | 1.97 | 2.78 | 3.48 | 0.61 | 0.31 | 0.46 | 4.46 | 1.14 |
| Asset Turnover | — | 0.52 | 0.38 | 0.42 | 0.57 | 0.54 | 0.46 | 0.40 | 0.14 | 0.55 | 0.47 |
| Inventory Turnover | 5.46 | 5.46 | 3.60 | 3.42 | 4.51 | 8.35 | 5.10 | 3.20 | 0.32 | 441.54 | 3195.38 |
| Days Sales Outstanding | — | 45.44 | 49.83 | 59.59 | 49.14 | 54.96 | 89.83 | 60.81 | 210.94 | 35.08 | 76.48 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | 0.1% | 0.1% | 5.0% | 9.5% | 9.5% | 7.6% | — |
| Payout Ratio | — | — | — | — | — | 0.2% | — | 51.4% | 57.1% | 56.6% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | 49.4% | — | 18.4% | 16.7% | 13.4% | 47.0% |
| FCF Yield | — | — | — | — | — | 16.2% | 47.7% | 28.2% | 17.4% | 17.7% | 9.6% |
| Buyback Yield | 0.1% | 0.0% | 0.4% | 0.3% | 0.9% | 0.2% | 0.7% | 3.2% | 12.4% | 8.2% | 0.1% |
| Total Shareholder Yield | 0.1% | 0.0% | 0.4% | 0.3% | 1.0% | 0.3% | 5.7% | 12.7% | 21.9% | 15.8% | 0.1% |
| Shares Outstanding | — | $42M | $36M | $29M | $18M | $18M | $18M | $18M | $20M | $21M | $22M |
Liquidity and operational execution
Based on current market data, ARQ trades at a P/S of 0.83, which appears to reflect a significant discount compared to broader industrial peers, likely due to the market's skepticism regarding the company's ability to successfully transition from legacy coal-related operations to high-value water treatment carbon products.
The negative P/E ratio and the lack of a forward P/E multiple suggest that investors are currently valuing the company based on its asset base rather than its near-term earnings potential. This valuation gap may indicate that the market is waiting for concrete evidence of margin expansion from the GAC product line before assigning a growth-oriented multiple.
As reported in recent financial statements, ARQ's ROIC has struggled to maintain positive territory, hovering near -0.4% in 2026Q1, which underscores the difficulty of generating adequate returns while the company undergoes a capital-intensive retooling of its Red River manufacturing facility for new product lines.
The inability to consistently generate a positive return on invested capital suggests that the current asset base is underutilized or burdened by high fixed costs associated with the strategic pivot. Investors should monitor whether the company can improve its asset turnover, which remains low at 0.13, as it scales its higher-margin GAC production.
According to historical data, ARQ's cash conversion cycle has exhibited significant volatility, with recent periods showing a lack of consistent improvement in managing inventory and receivables, which complicates the company's ability to optimize its working capital during this period of operational transformation.
The fluctuation in days inventory outstanding, which reached 84 days in 2026Q1, suggests that the company may be facing challenges in aligning its production output with market demand for its new carbon products. This inefficiency in working capital management places additional pressure on the company's already constrained liquidity position.
Based on reported figures, ARQ's current ratio has declined to 1.02 as of 2026Q1, indicating a tightening liquidity position that leaves the company with limited flexibility to absorb further operational setbacks or fund necessary capital expenditures without potentially dilutive external financing.
The quick ratio of 0.58 highlights a heavy reliance on inventory to meet short-term obligations, which may be problematic if the transition to GAC products faces delays in market adoption. This liquidity profile warrants close monitoring, as the company's cash reserves appear insufficient to sustain prolonged negative operating margins.
The most commonly misapplied metric for ARQ is the P/E ratio, which is fundamentally misleading for a company in the midst of a major strategic pivot, as it fails to account for the non-recurring restructuring costs and the transition from tax-credit-based earnings to industrial product sales.
Investors should instead focus on the progress of the GAC conversion and the trend in gross margins, as these metrics provide a clearer view of the company's underlying industrial earning power. Relying on traditional earnings multiples obscures the potential for a valuation re-rating if the company successfully establishes itself as a key player in the PFAS water treatment market.
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Quick answers to the most common questions about buying ARQ stock.
Arq, Inc.'s current P/E ratio is -1.7x. The historical average is 4.6x.
Arq, Inc.'s current EV/EBITDA is 34.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 31.4x.
Arq, Inc.'s return on equity (ROE) is -27.3%. The historical average is 24.1%.
Based on historical data, Arq, Inc. is trading at a P/E of -1.7x. Compare with industry peers and growth rates for a complete picture.
Arq, Inc. has 27.9% gross margin and -6.7% operating margin.
Arq, Inc.'s Debt/EBITDA ratio is 10.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.