Arcosa Should Sell Its Transportation Segment

Nov. 16, 2022 1:24 PM ETArcosa, Inc. (ACA)TRN

Summary

  • Arcosa, Inc. is a diversified company, but some segments are dragging on performance.
  • While the share price has remained strong the past year, I believe more value may be unlocked with further restructuring of the business.
  • However, infrastructure spending is incoming, and the industry seems like it will survive a weaker economy.

Oil Tankers on the Mississippi

Art Wager

Introduction

Arcosa, Inc. (NYSE:ACA) is a diversified company that provides services and materials to serve various parts of the infrastructure industry. Many of these are fairly niche and offer high-enough margins to support a bullish case, but one

A summary of the three main business units.

Arcosa Presentation

A summary of the transportation segment

Arcosa Presentation

A summary of the storage tank sale

Arcosa Presentation

A summary of EBITDA by segment

Arcosa Presentation

A summary of cyclicality reduction and future proofing of the company

Arcosa Presentation

This article was written by

Hello, I am an individual investor with an interest in bringing diversification of viewpoints to stock analysis and investing. This brings to point the Japanese proverb 他山之石 -ta-zan-no-ishi- which translates to "another-mountain's-rock" and denotes the importance of diversifying the sources of your knowledge in order to gain the advantage of multiple perspectives. Further, a rock represents the foundational aspects of the world a mountain supports, signifying the importance of understanding the simple fundamentals in order to succeed. As such, I cover a wide range of assets in order to find the best of every type of investing. Please consider following so we can continue down this path of knowledge together, and hopefully, I am able to provide some novel insights for you with every article. Thanks for reading.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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