ARLO TECHNOLOGIES INC (ARLO) Stock Fundamental Analysis
NYSE:ARLO - New York Stock Exchange, Inc. - US04206A1016 - Common Stock - Currency: USD
Taking everything into account, ARLO scores 4 out of 10 in our fundamental rating. ARLO was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While ARLO seems to be doing ok healthwise, there are quite some concerns on its profitability. ARLO has a correct valuation and a medium growth rate.
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.
In the past 5 years ARLO always reported negative net income.
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
ARLO has a Return On Assets of -7.32%. This is in the lower half of the industry: ARLO underperforms 62.10% of its industry peers.
Looking at the Return On Equity, with a value of -20.99%, ARLO is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.32% | ||
| ROE | -20.99% | ||
| ROIC | N/A |
ROA(3y)-12.91%
ROA(5y)-15.86%
ROE(3y)-38.7%
ROE(5y)-48.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of ARLO (38.13%) is better than 67.74% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.13% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.92%
GM growth 5Y30.48%
2. Health
2.1 Basic Checks
ARLO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ARLO has been increased compared to 1 year ago.
Compared to 5 years ago, ARLO has more shares outstanding
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 5.07 indicates that ARLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.07, ARLO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.07 |
ROIC/WACCN/A
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ARLO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, ARLO is doing worse than 79.84% of the companies in the same industry.
ARLO has a Quick Ratio of 1.22. This is a normal value and indicates that ARLO is financially healthy and should not expect problems in meeting its short term obligations.
ARLO's Quick ratio of 1.22 is on the low side compared to the rest of the industry. ARLO is outperformed by 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
ARLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.43%, which is quite impressive.
The Revenue has been growing slightly by 0.27% in the past year.
ARLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.67% yearly.
EPS 1Y (TTM)31.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%-4.13%
3.2 Future
ARLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.67% yearly.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y58.86%
EPS Next 2Y36.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.08%
Revenue Next 2Y4.81%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 34.26 indicates a quite expensive valuation of ARLO.
The rest of the industry has a similar Price/Earnings ratio as ARLO.
ARLO is valuated rather expensively when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.09, which indicates a rather expensive current valuation of ARLO.
Based on the Price/Forward Earnings ratio, ARLO is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
ARLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.26 | ||
| Fwd PE | 21.09 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than 68.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.45 | ||
| 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 36.67% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y36.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ARLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.76
-0.44 (-2.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners88.93%
Inst Owner Change-0.01%
Ins Owners5.44%
Ins Owner Change-32.1%
Market Cap1.63B
Analysts81.82
Price Target19.89 (26.21%)
Short Float %7.59%
Short Ratio6.46
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)1
Avg EPS beat(2)9.71%
Min EPS beat(2)-6.27%
Max EPS beat(2)25.69%
EPS beat(4)3
Avg EPS beat(4)8.21%
Min EPS beat(4)-6.27%
Max EPS beat(4)25.69%
EPS beat(8)7
Avg EPS beat(8)19.55%
EPS beat(12)11
Avg EPS beat(12)42.76%
EPS beat(16)15
Avg EPS beat(16)60.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-1.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)-0.05%
Revenue beat(8)2
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)0.86%
Revenue beat(16)9
Avg Revenue beat(16)2.24%
PT rev (1m)-7.14%
PT rev (3m)0%
EPS NQ rev (1m)2.69%
EPS NQ rev (3m)8.99%
EPS NY rev (1m)0%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.26 | ||
| Fwd PE | 21.09 | ||
| P/S | 3.22 | ||
| P/FCF | 28.45 | ||
| P/OCF | 26.11 | ||
| P/B | 15.76 | ||
| P/tB | 17.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.46
EY2.92%
EPS(NY)0.75
Fwd EY4.74%
FCF(TTM)0.55
FCFY3.52%
OCF(TTM)0.6
OCFY3.83%
SpS4.89
BVpS1
TBVpS0.89
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.32% | ||
| ROE | -20.99% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.13% | ||
| FCFM | 11.33% |
ROA(3y)-12.91%
ROA(5y)-15.86%
ROE(3y)-38.7%
ROE(5y)-48.3%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y13.92%
GM growth 5Y30.48%
F-Score4
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 164.27% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 5.07 |
F-Score4
WACC8.87%
ROIC/WACCN/A
Cap/Depr(3y)62.41%
Cap/Depr(5y)52.66%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
EPS Next Y58.86%
EPS Next 2Y36.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.27%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%-4.13%
Revenue Next Year2.08%
Revenue Next 2Y4.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year250.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y518.13%
FCF growth 3YN/A
FCF growth 5Y80.89%
OCF growth 1Y663.86%
OCF growth 3YN/A
OCF growth 5Y41.11%