Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

ARC Document Solutions Still On A Recovery Path

ARC Document Solutions (NYSE:ARC) is barely followed on the Street, but this small cap document services company has undergone some pretty compelling changes even as its traditional core market (reprographic services for architecture/engineering/construction) has seen severe stress over the last six or seven years. With the company still generating around three-quarters of its revenue from that AEC end market and non-residential construction picking up, there could be good revenue and margin growth potential for a company that has already shown a good knack for maintaining FCF through tough times.

Changes For The Better

ARC Document's core (traditional) reprographics business still has not recovered, as revenue fell more than 2% in the fourth quarter of 2013. To add some...

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