ARLO TECHNOLOGIES INC (ARLO)

US04206A1016 - Common Stock

11.8  +0.59 (+5.26%)

After market: 11.8 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ARLO. ARLO was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of ARLO is average, but there are quite some concerns on its profitability. ARLO is not valued too expensively and it also shows a decent growth rate.



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2

1. Profitability

1.1 Basic Checks

ARLO had positive earnings in the past year.
In the past year ARLO had a positive cash flow from operations.
ARLO had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: ARLO reported negative operating cash flow in multiple years.

1.2 Ratios

Looking at the Return On Assets, with a value of -7.71%, ARLO is doing worse than 65.08% of the companies in the same industry.
ARLO has a Return On Equity of -21.31%. This is in the lower half of the industry: ARLO underperforms 67.46% of its industry peers.
Industry RankSector Rank
ROA -7.71%
ROE -21.31%
ROIC N/A
ROA(3y)-14.88%
ROA(5y)-16.99%
ROE(3y)-45.19%
ROE(5y)-50.71%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

With a decent Gross Margin value of 34.11%, ARLO is doing good in the industry, outperforming 61.11% of the companies in the same industry.
ARLO's Gross Margin has improved in the last couple of years.
ARLO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 34.11%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y30.05%
GM growth 5Y11.48%

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6

2. Health

2.1 Basic Checks

ARLO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ARLO has more shares outstanding
ARLO has more shares outstanding than it did 5 years ago.
There is no outstanding debt for ARLO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 3.76 indicates that ARLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.76, ARLO is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
ARLO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.76
ROIC/WACCN/A
WACC9.31%

2.3 Liquidity

A Current Ratio of 1.55 indicates that ARLO should not have too much problems paying its short term obligations.
The Current ratio of ARLO (1.55) is worse than 75.40% of its industry peers.
A Quick Ratio of 1.31 indicates that ARLO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, ARLO is doing worse than 65.87% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.55
Quick Ratio 1.31

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5

3. Growth

3.1 Past

ARLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 485.71%, which is quite impressive.
Looking at the last year, ARLO shows a small growth in Revenue. The Revenue has grown by 0.14% in the last year.
Measured over the past years, ARLO shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
EPS 1Y (TTM)485.71%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q375%
Revenue 1Y (TTM)0.14%
Revenue growth 3Y11.2%
Revenue growth 5Y1.11%
Revenue growth Q2Q14%

3.2 Future

The Earnings Per Share is expected to grow by 48.02% on average over the next years. This is a very strong growth
ARLO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.23% yearly.
EPS Next Y56.25%
EPS Next 2Y48.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.12%
Revenue Next 2Y9.23%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 43.70, ARLO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ARLO is on the same level as its industry peers.
ARLO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.84.
With a Price/Forward Earnings ratio of 27.97, ARLO can be considered very expensive at the moment.
ARLO's Price/Forward Earnings is on the same level as the industry average.
ARLO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.35.
Industry RankSector Rank
PE 43.7
Fwd PE 27.97

4.2 Price Multiples

ARLO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARLO is cheaper than 64.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.01
EV/EBITDA N/A

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 ARLO's earnings are expected to grow with 48.02% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y48.02%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

ARLO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ARLO TECHNOLOGIES INC

NYSE:ARLO (4/26/2024, 7:04:00 PM)

After market: 11.8 0 (0%)

11.8

+0.59 (+5.26%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.13B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 43.7
Fwd PE 27.97
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.78
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.71%
ROE -21.31%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 34.11%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.72
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.55
Quick Ratio 1.31
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)485.71%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y56.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.14%
Revenue growth 3Y11.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y