4.16 USD
+0.35 (+9.19%)
4.18 USD
+0.02 (+0.48%)
Taking everything into account, AREN scores 4 out of 10 in our fundamental rating. AREN was compared to 70 industry peers in the Interactive Media & Services industry. While AREN is still in line with the averages on profitability rating, there are concerns on its financial health. AREN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
AREN had positive earnings in the past year.
In the past year AREN had a positive cash flow from operations.
In the past 5 years AREN always reported negative net income.
AREN had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
AREN has a Return On Assets of 96.65%. This is amongst the best in the industry. AREN outperforms 100.00% of its industry peers.
The Return On Invested Capital of AREN (33.46%) is better than 97.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 96.65% | ||
| ROE | N/A | ||
| ROIC | 33.46% |
ROA(3y)-50.26%
ROA(5y)-50.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 84.23%, AREN belongs to the best of the industry, outperforming 98.57% of the companies in the same industry.
Looking at the Operating Margin, with a value of 28.76%, AREN belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
Looking at the Gross Margin, with a value of 52.64%, AREN is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of AREN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.76% | ||
| PM (TTM) | 84.23% | ||
| GM | 52.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.31%
GM growth 5Y31.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AREN is creating value.
Compared to 1 year ago, AREN has more shares outstanding
AREN has more shares outstanding than it did 5 years ago.
AREN has a worse debt/assets ratio than last year.
2.2 Solvency
AREN has an Altman-Z score of -0.75. This is a bad value and indicates that AREN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AREN (-0.75) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.75 |
ROIC/WACC2.68
WACC12.49%
2.3 Liquidity
AREN has a Current Ratio of 1.82. This is a normal value and indicates that AREN is financially healthy and should not expect problems in meeting its short term obligations.
AREN has a Current ratio (1.82) which is comparable to the rest of the industry.
AREN has a Quick Ratio of 1.82. This is a normal value and indicates that AREN is financially healthy and should not expect problems in meeting its short term obligations.
AREN has a Quick ratio of 1.82. This is comparable to the rest of the industry: AREN outperforms 51.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
AREN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.63%, which is quite impressive.
AREN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -34.99%.
The Revenue has been growing by 90.67% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)35.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-34.99%
Revenue growth 3Y3.91%
Revenue growth 5Y90.67%
Sales Q2Q%-11.31%
3.2 Future
AREN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.03% yearly.
Based on estimates for the next years, AREN will show a very negative growth in Revenue. The Revenue will decrease by -10.33% on average per year.
EPS Next Y52.11%
EPS Next 2Y75.01%
EPS Next 3Y33.03%
EPS Next 5YN/A
Revenue Next Year9.01%
Revenue Next 2Y-19.66%
Revenue Next 3Y-10.33%
Revenue Next 5YN/A
3.3 Evolution
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
Based on the Price/Earnings ratio of 1.57, the valuation of AREN can be described as very cheap.
AREN's Price/Earnings ratio is rather cheap when compared to the industry. AREN is cheaper than 94.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, AREN is valued rather cheaply.
A Price/Forward Earnings ratio of 1.49 indicates a rather cheap valuation of AREN.
100.00% of the companies in the same industry are more expensive than AREN, based on the Price/Forward Earnings ratio.
AREN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.57 | ||
| Fwd PE | 1.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AREN is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.95 |
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 AREN's earnings are expected to grow with 33.03% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y75.01%
EPS Next 3Y33.03%
5. Dividend
5.1 Amount
AREN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.16
+0.35 (+9.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners9.76%
Inst Owner Change9.54%
Ins Owners1.28%
Ins Owner Change0.14%
Market Cap197.48M
Revenue(TTM)143.63M
Net Income(TTM)123.49M
Analysts82.86
Price Target10.2 (145.19%)
Short Float %4.9%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-16.67%
PT rev (3m)-16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.57 | ||
| Fwd PE | 1.49 | ||
| P/S | 1.35 | ||
| P/FCF | N/A | ||
| P/OCF | 64.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.95 |
EPS(TTM)2.65
EY63.7%
EPS(NY)2.78
Fwd EY66.94%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)0.06
OCFY1.55%
SpS3.09
BVpS-0.36
TBVpS-1.92
PEG (NY)0.03
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 96.65% | ||
| ROE | N/A | ||
| ROCE | 42.35% | ||
| ROIC | 33.46% | ||
| ROICexc | 35.9% | ||
| ROICexgc | 176.89% | ||
| OM | 28.76% | ||
| PM (TTM) | 84.23% | ||
| GM | 52.64% | ||
| FCFM | N/A |
ROA(3y)-50.26%
ROA(5y)-50.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.31%
GM growth 5Y31.33%
F-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 81.07% | ||
| Cap/Sales | 4.92% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 5.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | -0.75 |
F-Score5
WACC12.49%
ROIC/WACC2.68
Cap/Depr(3y)25.82%
Cap/Depr(5y)23.62%
Cap/Sales(3y)3.11%
Cap/Sales(5y)3.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y52.11%
EPS Next 2Y75.01%
EPS Next 3Y33.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-34.99%
Revenue growth 3Y3.91%
Revenue growth 5Y90.67%
Sales Q2Q%-11.31%
Revenue Next Year9.01%
Revenue Next 2Y-19.66%
Revenue Next 3Y-10.33%
Revenue Next 5YN/A
EBIT growth 1Y509.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year471.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y83.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y115.1%
OCF growth 3YN/A
OCF growth 5YN/A
ARENA GROUP HOLDINGS INC/THE / AREN FAQ
What is the fundamental rating for AREN stock?
ChartMill assigns a fundamental rating of 4 / 10 to AREN.
Can you provide the valuation status for ARENA GROUP HOLDINGS INC/THE?
ChartMill assigns a valuation rating of 8 / 10 to ARENA GROUP HOLDINGS INC/THE (AREN). This can be considered as Undervalued.
How profitable is ARENA GROUP HOLDINGS INC/THE (AREN) stock?
ARENA GROUP HOLDINGS INC/THE (AREN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for AREN stock?
The Price/Earnings (PE) ratio for ARENA GROUP HOLDINGS INC/THE (AREN) is 1.57 and the Price/Book (PB) ratio is -11.51.