ARRAY DIGITAL INFRASTRUCTURE (AD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AD - US9116841084 - Common Stock
48.09 USD
+0.8 (+1.69%)
48.09 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to AD. AD was compared to 22 industry peers in the Wireless Telecommunication Services industry. The financial health of AD is average, but there are quite some concerns on its profitability. AD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AD has reported negative net income.
In the past year AD had a positive cash flow from operations.
AD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.32%, AD is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
The Return On Equity of AD (0.61%) is worse than 68.18% of its industry peers.
The Return On Invested Capital of AD (1.13%) is worse than 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AD is below the industry average of 5.89%.
The last Return On Invested Capital (1.13%) for AD is above the 3 year average (1.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 0.61% | ||
| ROIC | 1.13% |
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
The Profit Margin of AD (0.55%) is worse than 63.64% of its industry peers.
With a Operating Margin value of 2.22%, AD is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
AD's Operating Margin has improved in the last couple of years.
The Gross Margin of AD (56.64%) is comparable to the rest of the 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 | 2.22% | ||
| PM (TTM) | 0.55% | ||
| GM | 56.64% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AD is destroying value.
The number of shares outstanding for AD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AD has less shares outstanding
Compared to 1 year ago, AD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.82 indicates that AD is not a great score, but indicates only limited risk for bankruptcy at the moment.
AD's Altman-Z score of 1.82 is fine compared to the rest of the industry. AD outperforms 77.27% of its industry peers.
AD has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
AD has a Debt to FCF ratio of 1.87. This is in the better half of the industry: AD outperforms 77.27% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that AD is not too dependend on debt financing.
AD has a Debt to Equity ratio of 0.27. This is in the better half of the industry: AD outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.15
WACC7.59%
2.3 Liquidity
A Current Ratio of 0.65 indicates that AD may have some problems paying its short term obligations.
With a Current ratio value of 0.65, AD is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
AD has a Quick Ratio of 0.65. This is a bad value and indicates that AD is not financially healthy enough and could expect problems in meeting its short term obligations.
AD has a Quick ratio of 0.65. This is amonst the worse of the industry: AD underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
AD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -120.73%.
The earnings per share for AD have been decreasing by -13.19% on average. This is quite bad
AD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.64%.
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)-120.73%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%-403.85%
Revenue 1Y (TTM)-25.64%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-94.89%
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.
Based on estimates for the next years, AD will show a very negative growth in Revenue. The Revenue will decrease by -42.64% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for AD. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 39.91, AD can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AD is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of AD to the average of the S&P500 Index (36.12), we can say AD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 39.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AD is valued a bit more expensive than the industry average as 77.27% of the companies are valued more cheaply.
AD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.51 | ||
| EV/EBITDA | 17.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)N/A
PEG (5Y)N/A
EPS Next 2Y30.28%
EPS Next 3Y26.34%
5. Dividend
5.1 Amount
AD has a Yearly Dividend Yield of 49.92%, which is a nice return.
AD's Dividend Yield is rather good when compared to the industry average which is at 8.84. AD pays more dividend than 100.00% of the companies in the same industry.
AD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 49.92% |
5.2 History
AD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DPN/A
EPS Next 2Y30.28%
EPS Next 3Y26.34%
48.09
+0.8 (+1.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners30.54%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner Change0%
Market Cap4.15B
Revenue(TTM)2.83B
Net Income(TTM)15.54M
Analysts80
Price Target62.81 (30.61%)
Short Float %9.5%
Short Ratio6.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 49.92% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-194.16%
Min EPS beat(2)-406.8%
Max EPS beat(2)18.48%
EPS beat(4)2
Avg EPS beat(4)-59.48%
Min EPS beat(4)-406.8%
Max EPS beat(4)191.03%
EPS beat(8)5
Avg EPS beat(8)20.4%
EPS beat(12)7
Avg EPS beat(12)37.47%
EPS beat(16)9
Avg EPS beat(16)22.37%
Revenue beat(2)0
Avg Revenue beat(2)-48.65%
Min Revenue beat(2)-94.94%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-26.76%
Min Revenue beat(4)-94.94%
Max Revenue beat(4)-2.36%
Revenue beat(8)0
Avg Revenue beat(8)-14.95%
Revenue beat(12)0
Avg Revenue beat(12)-12.02%
Revenue beat(16)1
Avg Revenue beat(16)-9.54%
PT rev (1m)-18.01%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)45.45%
EPS NY rev (1m)0%
EPS NY rev (3m)28.83%
Revenue NQ rev (1m)-31.44%
Revenue NQ rev (3m)-30.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 39.91 | ||
| P/S | 1.47 | ||
| P/FCF | 11.51 | ||
| P/OCF | 7.92 | ||
| P/B | 1.64 | ||
| P/tB | 4.72 | ||
| EV/EBITDA | 17.02 |
EPS(TTM)-0.17
EYN/A
EPS(NY)1.21
Fwd EY2.51%
FCF(TTM)4.18
FCFY8.69%
OCF(TTM)6.08
OCFY12.63%
SpS32.7
BVpS29.28
TBVpS10.2
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 0.61% | ||
| ROCE | 1.43% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.22% | ||
| ROICexgc | 2.06% | ||
| OM | 2.22% | ||
| PM (TTM) | 0.55% | ||
| GM | 56.64% | ||
| FCFM | 12.78% |
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%
ROICexgc growth 3Y-6.62%
ROICexgc 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-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 81.13% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 198.37% | ||
| Profit Quality | 2324.6% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.82 |
F-Score7
WACC7.59%
ROIC/WACC0.15
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)-120.73%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%-403.85%
EPS Next Y52.32%
EPS Next 2Y30.28%
EPS Next 3Y26.34%
EPS Next 5Y0.59%
Revenue 1Y (TTM)-25.64%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-94.89%
Revenue Next Year-2.47%
Revenue Next 2Y-1.9%
Revenue Next 3Y-1.55%
Revenue Next 5Y-42.64%
EBIT growth 1Y-64.35%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year19968%
EBIT Next 3Y476.79%
EBIT Next 5Y95.74%
FCF growth 1Y65.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.61%
OCF growth 3Y3.26%
OCF growth 5Y4.05%
ARRAY DIGITAL INFRASTRUCTURE / AD FAQ
What is the ChartMill fundamental rating of ARRAY DIGITAL INFRASTRUCTURE (AD) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AD.
Can you provide the valuation status for ARRAY DIGITAL INFRASTRUCTURE?
ChartMill assigns a valuation rating of 2 / 10 to ARRAY DIGITAL INFRASTRUCTURE (AD). This can be considered as Overvalued.
What is the profitability of AD stock?
ARRAY DIGITAL INFRASTRUCTURE (AD) has a profitability rating of 3 / 10.
What is the expected EPS growth for ARRAY DIGITAL INFRASTRUCTURE (AD) stock?
The Earnings per Share (EPS) of ARRAY DIGITAL INFRASTRUCTURE (AD) is expected to grow by 52.32% in the next year.