ARRAY DIGITAL INFRASTRUCTURE (AD) Stock Fundamental Analysis
NYSE:AD - US9116841084 - Common Stock
54.28 USD
+0.15 (+0.28%)
54.28 USD
0 (0%)
AD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. AD scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AD was profitable.
AD had a positive operating cash flow in the past year.
AD had positive earnings in 4 of the past 5 years.
AD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AD (-0.24%) is worse than 71.43% of its industry peers.
The Return On Equity of AD (-0.54%) is worse than 71.43% of its industry peers.
The Return On Invested Capital of AD (0.97%) is worse than 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AD is significantly below the industry average of 6.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.54% | ||
| ROIC | 0.97% |
ROA(3y)0.13%
ROA(5y)0.85%
ROE(3y)0.32%
ROE(5y)1.91%
ROIC(3y)1.05%
ROIC(5y)1.3%
1.3 Margins
Looking at the Operating Margin, with a value of 3.16%, AD is doing worse than 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of AD has grown nicely.
With a Gross Margin value of 57.11%, AD perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Gross Margin of AD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.16% | ||
| PM (TTM) | N/A | ||
| GM | 57.11% |
OM growth 3Y-6.02%
OM growth 5Y3.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AD is destroying value.
AD has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AD has been reduced compared to 5 years ago.
Compared to 1 year ago, AD has an improved debt to assets ratio.
2.2 Solvency
AD has an Altman-Z score of 1.34. This is a bad value and indicates that AD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.34, AD is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
AD has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as AD would need 6.64 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.64, AD perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that AD is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.61, AD is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.12
WACC7.75%
2.3 Liquidity
AD has a Current Ratio of 1.87. This is a normal value and indicates that AD is financially healthy and should not expect problems in meeting its short term obligations.
AD has a Current ratio of 1.87. This is amongst the best in the industry. AD outperforms 85.71% of its industry peers.
A Quick Ratio of 1.71 indicates that AD should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.71, AD belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.32% over the past year.
Measured over the past years, AD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.19% on average per year.
The Revenue has decreased by -3.65% in the past year.
Measured over the past years, AD shows a decrease in Revenue. The Revenue has been decreasing by -1.29% on average per year.
EPS 1Y (TTM)7.32%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%80%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-1.19%
3.2 Future
AD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.59% yearly.
AD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -42.64% yearly.
EPS Next Y52.32%
EPS Next 2Y30.28%
EPS Next 3Y26.34%
EPS Next 5Y0.59%
Revenue Next Year-2.47%
Revenue Next 2Y-1.9%
Revenue Next 3Y-1.55%
Revenue Next 5Y-42.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AD is valuated quite expensively with a Price/Earnings ratio of 61.68.
AD's Price/Earnings ratio is a bit more expensive when compared to the industry. AD is more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.14, AD is valued quite expensively.
A Price/Forward Earnings ratio of 45.04 indicates a quite expensive valuation of AD.
AD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AD is more expensive than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, AD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.68 | ||
| Fwd PE | 45.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AD is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.88 | ||
| EV/EBITDA | 9.16 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AD's earnings are expected to grow with 26.34% in the coming years.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y30.28%
EPS Next 3Y26.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 41.89%, AD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.76, AD pays a better dividend. On top of this AD pays more dividend than 100.00% of the companies listed in the same industry.
AD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 41.89% |
5.2 History
AD does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DP0%
EPS Next 2Y30.28%
EPS Next 3Y26.34%
54.28
+0.15 (+0.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.3%
Inst Owner ChangeN/A
Ins Owners0.94%
Ins Owner ChangeN/A
Market Cap4.67B
Analysts80
Price Target76.61 (41.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 41.89% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.07%
Min EPS beat(2)-40.62%
Max EPS beat(2)18.48%
EPS beat(4)3
Avg EPS beat(4)65.21%
Min EPS beat(4)-40.62%
Max EPS beat(4)191.03%
EPS beat(8)6
Avg EPS beat(8)121.86%
EPS beat(12)7
Avg EPS beat(12)57.43%
EPS beat(16)9
Avg EPS beat(16)46.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.8%
Min Revenue beat(2)-7.23%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-4.21%
Min Revenue beat(4)-7.23%
Max Revenue beat(4)-2.36%
Revenue beat(8)0
Avg Revenue beat(8)-3.9%
Revenue beat(12)1
Avg Revenue beat(12)-3.96%
Revenue beat(16)1
Avg Revenue beat(16)-3.97%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.68 | ||
| Fwd PE | 45.04 | ||
| P/S | 1.26 | ||
| P/FCF | 10.88 | ||
| P/OCF | 5.48 | ||
| P/B | 1.01 | ||
| P/tB | 274.59 | ||
| EV/EBITDA | 9.16 |
EPS(TTM)0.88
EY1.62%
EPS(NY)1.21
Fwd EY2.22%
FCF(TTM)4.99
FCFY9.19%
OCF(TTM)9.91
OCFY18.25%
SpS43.02
BVpS53.49
TBVpS0.2
PEG (NY)1.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.54% | ||
| ROCE | 1.22% | ||
| ROIC | 0.97% | ||
| ROICexc | 1.01% | ||
| ROICexgc | 2.01% | ||
| OM | 3.16% | ||
| PM (TTM) | N/A | ||
| GM | 57.11% | ||
| FCFM | 11.59% |
ROA(3y)0.13%
ROA(5y)0.85%
ROE(3y)0.32%
ROE(5y)1.91%
ROIC(3y)1.05%
ROIC(5y)1.3%
ROICexc(3y)1.07%
ROICexc(5y)1.37%
ROICexgc(3y)2.08%
ROICexgc(5y)2.45%
ROCE(3y)1.33%
ROCE(5y)1.64%
ROICexcg growth 3Y-6.62%
ROICexcg growth 5Y1.42%
ROICexc growth 3Y-9.23%
ROICexc growth 5Y-3.33%
OM growth 3Y-6.02%
OM growth 5Y3.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.64 | ||
| Debt/EBITDA | 3.62 | ||
| Cap/Depr | 63.99% | ||
| Cap/Sales | 11.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.34 |
F-Score5
WACC7.75%
ROIC/WACC0.12
Cap/Depr(3y)121.94%
Cap/Depr(5y)166.9%
Cap/Sales(3y)20.71%
Cap/Sales(5y)28.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.32%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%80%
EPS Next Y52.32%
EPS Next 2Y30.28%
EPS Next 3Y26.34%
EPS Next 5Y0.59%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-1.19%
Revenue Next Year-2.47%
Revenue Next 2Y-1.9%
Revenue Next 3Y-1.55%
Revenue Next 5Y-42.64%
EBIT growth 1Y-37.1%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year20168.3%
EBIT Next 3Y476.6%
EBIT Next 5Y95.74%
FCF growth 1Y941.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.3%
OCF growth 3Y3.26%
OCF growth 5Y4.05%