ARRAY DIGITAL INFRASTRUCTURE (AD) Stock Fundamental Analysis
USA - NYSE:AD - US9116841084 - Common Stock
49.57 USD
+0.45 (+0.92%)
49.57 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. While AD seems to be doing ok healthwise, 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 was profitable.
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
AD has a worse Return On Assets (-0.24%) than 72.73% of its industry peers.
With a Return On Equity value of -0.54%, AD is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
AD's Return On Invested Capital of 0.97% is on the low side compared to the rest of the industry. AD is outperformed by 72.73% of its industry peers.
AD had an Average Return On Invested Capital over the past 3 years of 1.05%. This is below the industry average of 5.80%.
| 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
AD has a worse Operating Margin (3.16%) than 68.18% of its industry peers.
AD's Operating Margin has improved in the last couple of years.
AD's Gross Margin of 57.11% is in line compared to the rest of the industry. AD outperforms 54.55% of its industry peers.
AD's Gross Margin has been stable in the last couple of years.
| 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.
AD has less shares outstanding than it did 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 1.29. This is a bad value and indicates that AD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AD (1.29) is better than 68.18% of its industry peers.
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 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that AD is somewhat dependend on debt financing.
AD's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. AD outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.11
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.87 indicates that AD should not have too much problems paying its short term obligations.
AD has a Current ratio of 1.87. This is amongst the best in the industry. AD outperforms 86.36% of its industry peers.
AD has a Quick Ratio of 1.71. This is a normal value and indicates that AD is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.71, AD belongs to the best of the industry, outperforming 86.36% 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.
The earnings per share for AD have been decreasing by -13.19% on average. This is quite bad
Looking at the last year, AD shows a decrease in Revenue. The Revenue has decreased by -3.65% in the last year.
AD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.29% yearly.
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
The Earnings Per Share is expected to grow by 0.59% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 56.33, the valuation of AD can be described as expensive.
AD's Price/Earnings ratio is a bit more expensive when compared to the industry. AD is more expensive than 68.18% of the companies in the same industry.
AD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 41.13 indicates a quite expensive valuation of AD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AD indicates a slightly more expensive valuation: AD is more expensive than 77.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.53. AD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.33 | ||
| Fwd PE | 41.13 |
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.
AD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
AD's 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)1.08
PEG (5Y)N/A
EPS Next 2Y30.28%
EPS Next 3Y26.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 46.82%, AD is a good candidate for dividend investing.
AD's Dividend Yield is rather good when compared to the industry average which is at 8.71. AD pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 46.82% |
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%
49.57
+0.45 (+0.92%)
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 ChangeN/A
Market Cap4.26B
Revenue(TTM)3.70B
Net Income(TTM)-25000000
Analysts80
Price Target76.61 (54.55%)
Short Float %9.86%
Short Ratio6.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 46.82% |
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)0%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.33 | ||
| Fwd PE | 41.13 | ||
| P/S | 1.15 | ||
| P/FCF | 9.94 | ||
| P/OCF | 5 | ||
| P/B | 0.93 | ||
| P/tB | 250.77 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)0.88
EY1.78%
EPS(NY)1.21
Fwd EY2.43%
FCF(TTM)4.99
FCFY10.06%
OCF(TTM)9.91
OCFY19.99%
SpS43.02
BVpS53.49
TBVpS0.2
PEG (NY)1.08
PEG (5Y)N/A
Graham Number32.54
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%
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-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 | 1.29 |
F-Score5
WACC8.44%
ROIC/WACC0.11
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 Year19968%
EBIT Next 3Y476.79%
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%
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 are the PE and PB ratios of ARRAY DIGITAL INFRASTRUCTURE (AD) stock?
The Price/Earnings (PE) ratio for ARRAY DIGITAL INFRASTRUCTURE (AD) is 56.33 and the Price/Book (PB) ratio is 0.93.
What is the earnings growth outlook for ARRAY DIGITAL INFRASTRUCTURE?
The Earnings per Share (EPS) of ARRAY DIGITAL INFRASTRUCTURE (AD) is expected to grow by 52.32% in the next year.