ARRAY DIGITAL INFRASTRUCTURE (AD) Stock Fundamental Analysis
USA - NYSE:AD - US9116841084 - Common Stock
49.62 USD
+0.22 (+0.45%)
49.62 USD
0 (0%)
Overall AD gets a fundamental rating of 3 out of 10. We evaluated AD against 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 does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years AD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.24%, AD is doing worse than 72.73% of the companies in the same industry.
AD has a worse Return On Equity (-0.54%) than 72.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.97%, AD is doing worse than 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AD is below the industry average of 5.84%.
| 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 Operating Margin of 3.16%. This is in the lower half of the industry: AD underperforms 68.18% of its industry peers.
AD's Operating Margin has improved in the last couple of years.
AD has a Gross Margin of 57.11%. This is comparable 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
AD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AD remains at a similar level compared to 1 year ago.
AD has less shares outstanding than it did 5 years ago.
AD has a better debt/assets ratio than last year.
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.
AD has a better Altman-Z score (1.29) than 63.64% 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.
The Debt to FCF ratio of AD (6.64) is comparable to the rest of the industry.
AD has a Debt/Equity ratio of 0.61. This is a neutral value indicating AD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, AD perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.13
WACC7.42%
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 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.
AD's Quick ratio of 1.71 is amongst the best of the industry. AD outperforms 86.36% of its industry peers.
| 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.
AD shows a decrease in Revenue. In the last year, the revenue decreased by -3.65%.
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
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.
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
AD is valuated quite expensively with a Price/Earnings ratio of 56.39.
Compared to the rest of the industry, the Price/Earnings ratio of AD indicates a slightly more expensive valuation: AD is more expensive than 68.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AD to the average of the S&P500 Index (27.91), we can say AD is valued expensively.
Based on the Price/Forward Earnings ratio of 41.18, the valuation of AD can be described as expensive.
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 72.73% of the companies listed in the same industry.
AD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.39 | ||
| Fwd PE | 41.18 |
4.2 Price Multiples
AD's Enterprise Value to EBITDA ratio is in line with the industry average.
AD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 8.62 |
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)1.08
PEG (5Y)N/A
EPS Next 2Y30.28%
EPS Next 3Y26.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 45.36%, AD is a good candidate for dividend investing.
AD's Dividend Yield is rather good when compared to the industry average which is at 8.48. AD pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, AD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 45.36% |
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%
49.62
+0.22 (+0.45%)
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 Cap4.27B
Analysts80
Price Target76.61 (54.39%)
Short Float %8.54%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 45.36% |
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 | 56.39 | ||
| Fwd PE | 41.18 | ||
| P/S | 1.15 | ||
| P/FCF | 9.95 | ||
| P/OCF | 5.01 | ||
| P/B | 0.93 | ||
| P/tB | 251.02 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)0.88
EY1.77%
EPS(NY)1.21
Fwd EY2.43%
FCF(TTM)4.99
FCFY10.05%
OCF(TTM)9.91
OCFY19.97%
SpS43.02
BVpS53.49
TBVpS0.2
PEG (NY)1.08
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 | 1.29 |
F-Score5
WACC7.42%
ROIC/WACC0.13
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%