ARC ResourcesTSX:ARX -0.50%68 ROE % is 27.70% as of Mar. 2026, which is 117% above its 10-year median of 12.75. GuruFocus rates TSX:ARX with a GF Score™ of 68/100 and a GF Value™ of C$29.44 (Fairly Valued). The stock has 6 warning signs investors should review. Among 957 Oil & Gas companies, ARC Resources ranks better than 80.25% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ARC Resources's annualized net income for the quarter that ended in Mar. 2026 was C$2,337 Mil. ARC Resources's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was C$8,437 Mil. Therefore, ARC Resources's annualized ROE % for the quarter that ended in Mar. 2026 was 27.70%.
The historical rank and industry rank for ARC Resources's ROE % or its related term are showing as below:
TSX:ARX'
s ROE % Range Over the Past 10 Years
Min: -17.57 Med: 12.75 Max: 36.6
Current: 17.54
During the past 13 years, ARC Resources's highest ROE % was 36.60%. The lowest was -17.57%. And the median was 12.75%.
TSX:ARX's ROE % is ranked better than 80.25% of 957
companies
in the Oil & Gas industry
Industry Median: 5.71
vs TSX:ARX: 17.54
ARC Resources (TSX:ARX) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
ARC Resources ROE % Related Terms
ARC Resources ROE % Historical Data
* Premium members only.
The historical data trend for ARC Resources's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, ARC Resources's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ARC Resources ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, ARC Resources's ROE % distribution charts can be found below:
* The bar in red indicates where ARC Resources's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
ARC Resources (TSX:ARX) has a ROE % of 27.70% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ARC Resources and its competitors. This is 117% above median its historical median of 12.75. According to the industry distribution chart, ARC Resources ranks #189 out of 957 companies in the Oil & Gas industry, placing it in the top 19.7%.
Is ARC Resources' ROE % too high?
ARC Resources' current ROE % of 27.70% is 117% above median its 10-year median of 12.75. The Oil & Gas industry median ROE % is 5.71. ARC Resources' value of 27.70% is 385.1% above this industry median. Based on the distribution chart, ARC Resources ranks #189 out of 957 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, ARC Resources has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ARC Resources' ROE % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, ARC Resources ranks #189 out of 957 companies for ROE %. This places ARC Resources in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 5.71. ARC Resources' value of 27.70% is 385.1% above this benchmark. While the company's 10-year median is 12.75 vs. the industry median of 5.71, ARC Resources has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.71, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARC Resources's current ROE % of 27.70% is 385.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ARC Resources and its competitors. For the Oil & Gas industry, the median ROE % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARC Resources's current ROE % is 27.70%, which is 117% above median its own 10-year median of 12.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARC Resources stock overvalued right now?
Based on GuruFocus' analysis, ARC Resources (TSX:ARX) is currently considered Fairly Valued. The stock's GF Value™ is C$29.44, compared to a current price of C$29.64 — trading 0.7% above its estimated fair value. The current ROE % is 27.70%, which is 117% above median its 10-year median of 12.75 and 385.1% above the Oil & Gas industry median of 5.71. ARC Resources' overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For ARC Resources (TSX:ARX), the current ROE % is 27.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ARC Resources (TSX:ARX) Overvalued in 2026?
Based on GuruFocus' analysis, ARC Resources stock appears to be overvalued.
The current stock price of C$29.64 is trading 0.7% above its estimated GF Value™ of C$29.44.
GuruFocus considers ARC Resources to be Fairly Valued.
Key valuation signals for TSX:ARX:
ROE %: 27.70% (117% above median its 10-year median of 12.75)
GF Value™: C$29.44 vs. price of C$29.64 (0.7% above fair value)
Industry Position: 385.1% above the Oil & Gas median (#189 of 957)
No single metric tells the full story. See the TSX:ARX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arc Resources is a natural gas and condensate-focused producer in the Western Canada Sedimentary Basin. Its most valuable product by revenue, condensate, is a necessary feedstock for the oil industry. Natural gas is the largest product by volume, and the firm actively markets it through pipeline and liquefied natural gas agreements, seeking to limit in-basin pricing. It also operates its own processing assets. In 2024, production was 348 thousand barrels of oil equivalent per day.
68GF Score
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