ARLO TECHNOLOGIES INC (ARLO) Stock Fundamental Analysis
NYSE:ARLO - US04206A1016 - Common Stock
17.85 USD
+0.27 (+1.54%)
17.9 USD
+0.05 (+0.28%)
Overall ARLO gets a fundamental rating of 4 out of 10. We evaluated ARLO against 124 industry peers in the Electronic Equipment, Instruments & Components industry. ARLO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ARLO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ARLO had positive earnings in the past year.
ARLO had a positive operating cash flow in the past year.
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
ARLO has a Return On Assets (-2.19%) which is comparable to the rest of the industry.
ARLO has a Return On Equity (-5.93%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.19% | ||
| ROE | -5.93% | ||
| 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
ARLO has a better Gross Margin (40.19%) than 68.55% of its industry peers.
ARLO's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for ARLO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.19% |
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.
ARLO has more shares outstanding than it did 5 years ago.
ARLO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ARLO has an Altman-Z score of 5.55. This indicates that ARLO is financially healthy and has little risk of bankruptcy at the moment.
ARLO has a better Altman-Z score (5.55) than 78.23% of its industry peers.
ARLO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.55 |
ROIC/WACCN/A
WACC9.5%
2.3 Liquidity
ARLO has a Current Ratio of 1.47. This is a normal value and indicates that ARLO is financially healthy and should not expect problems in meeting its short term obligations.
ARLO has a Current ratio of 1.47. This is in the lower half of the industry: ARLO underperforms 74.19% of its industry peers.
ARLO has a Quick Ratio of 1.30. This is a normal value and indicates that ARLO is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.30, ARLO is not doing good in the industry: 62.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.90% over the past year.
The Revenue has decreased by -1.75% in the past year.
The Revenue has been growing slightly by 6.67% on average over the past years.
EPS 1Y (TTM)35.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%1.54%
3.2 Future
ARLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.52% yearly.
ARLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y56.95%
EPS Next 2Y42.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.69%
Revenue Next 2Y4.92%
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
ARLO is valuated quite expensively with a Price/Earnings ratio of 33.68.
Based on the Price/Earnings ratio, ARLO is valued a bit cheaper than 60.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. ARLO is valued slightly more expensive when compared to this.
ARLO is valuated rather expensively with a Price/Forward Earnings ratio of 21.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARLO indicates a somewhat cheap valuation: ARLO is cheaper than 65.32% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARLO to the average of the S&P500 Index (22.78), we can say ARLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 21.97 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.7 | ||
| 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.
ARLO's earnings are expected to grow with 42.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y42.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ARLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.85
+0.27 (+1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners89.64%
Inst Owner Change5.85%
Ins Owners4.23%
Ins Owner Change-30.96%
Market Cap1.86B
Analysts81.82
Price Target23.66 (32.55%)
Short Float %8.8%
Short Ratio5.82
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)2
Avg EPS beat(2)17.38%
Min EPS beat(2)9.08%
Max EPS beat(2)25.69%
EPS beat(4)3
Avg EPS beat(4)8%
Min EPS beat(4)-6.27%
Max EPS beat(4)25.69%
EPS beat(8)7
Avg EPS beat(8)13.17%
EPS beat(12)11
Avg EPS beat(12)33.95%
EPS beat(16)15
Avg EPS beat(16)56.9%
Revenue beat(2)1
Avg Revenue beat(2)0.69%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)2.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)2.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.71%
Revenue beat(12)5
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)1.71%
PT rev (1m)18.97%
PT rev (3m)18.97%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)5.49%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)2.72%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 21.97 | ||
| P/S | 3.67 | ||
| P/FCF | 32.7 | ||
| P/OCF | 28.76 | ||
| P/B | 15.75 | ||
| P/tB | 17.37 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.53
EY2.97%
EPS(NY)0.81
Fwd EY4.55%
FCF(TTM)0.55
FCFY3.06%
OCF(TTM)0.62
OCFY3.48%
SpS4.86
BVpS1.13
TBVpS1.03
PEG (NY)0.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.19% | ||
| ROE | -5.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.19% | ||
| FCFM | 11.22% |
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-Score5
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 243.99% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 5.55 |
F-Score5
WACC9.5%
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)35.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70%
EPS Next Y56.95%
EPS Next 2Y42.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%1.54%
Revenue Next Year2.69%
Revenue Next 2Y4.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year250.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1920.28%
FCF growth 3YN/A
FCF growth 5Y80.89%
OCF growth 1Y923.49%
OCF growth 3YN/A
OCF growth 5Y41.11%