ARC - ARC Document Solutions: Improved Buyout Offer Of $3.25/Share Would Be A Good Deal
2024-07-17 23:43:20 ET
Summary
- ARC Document Solutions received a binding offer to go private at $3.25 per share from CEO, potentially benefiting current shareholders.
- Q1 earnings showed growth in top-line revenue, but challenges in Plan Printing segment and equipment supply sales persist.
- Analysis of cost of equity, return on equity, and dividend discount model suggest a fair valuation of around $2.10 per share for ARC.
Intro
We wrote about ARC Document Solutions, Inc. ( ARC ) back in March of this year when we stated that the stock's cheap valuation did not justify long exposure in the digital printing & scanning company. Although shares have rallied almost 17% over the past 3+ months, it is fair to say the shares have been helped by the recent binding offer (To Go private ) of $3.25 per share from CEO, Kumarakulasingam Suriyakumar. Whether this deal goes through remains to be seen....
ARC Document Solutions: Improved Buyout Offer Of $3.25/Share Would Be A Good Deal