Wednesday, April 13, 2016

Seeking Alpha: ARC Document Solutions Struggling For Real Traction

While ARC Document Solutions (NYSE:ARC) has reported three straight years of higher free cash flow, the underlying performance trends in the business haven't been as encouraging. It doesn't seem to be leveraging a better commercial construction environment, and it looks as though the company is likely to struggle to make a real dent in the managed print services opportunity. While archiving has been growing for ARC, I believe the company is going to have a hard time making real competitive inroads into this market.

It's tempting to say that the worst is over. The shares have bounced off their low, the short interest is pretty small, commercial construction activity looks okay, and the shares seem to trade at low multiples to book, EBITDA, and revenue. That said, I'm concerned that the company is going to continue to struggle to find real traction with its projected growth drivers, and I don't see enough evidence yet to be very positive on this name as a dumpster-diving candidate.

Read more here:
ARC Document Solutions Struggling For Real Traction

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