ARLO TECHNOLOGIES INC (ARLO) Fundamental Analysis & Valuation

NYSE:ARLO • US04206A1016

Current stock price

14.35 USD
-0.5 (-3.37%)
At close:
14.4 USD
+0.05 (+0.35%)
Pre-Market:

This ARLO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ARLO Profitability Analysis

1.1 Basic Checks

  • In the past year ARLO was profitable.
  • In the past year ARLO had a positive cash flow from operations.
  • ARLO had negative earnings in 4 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.
ARLO Yearly Net Income VS EBIT VS OCF VS FCFARLO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M -100M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.81%, ARLO is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 11.68%, ARLO is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
  • With a Return On Invested Capital value of 4.72%, ARLO perfoms like the industry average, outperforming 58.87% of the companies in the same industry.
Industry RankSector Rank
ROA 4.81%
ROE 11.68%
ROIC 4.72%
ROA(3y)-4.38%
ROA(5y)-10.01%
ROE(3y)-13.3%
ROE(5y)-30.82%
ROIC(3y)N/A
ROIC(5y)N/A
ARLO Yearly ROA, ROE, ROICARLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.82%, ARLO is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
  • ARLO has a Operating Margin (1.56%) which is in line with its industry peers.
  • The Gross Margin of ARLO (43.99%) is better than 75.81% of its industry peers.
  • ARLO's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 1.56%
PM (TTM) 2.82%
GM 43.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.62%
GM growth 5Y23.18%
ARLO Yearly Profit, Operating, Gross MarginsARLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. ARLO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARLO is destroying value.
  • The number of shares outstanding for ARLO has been increased compared to 1 year ago.
  • The number of shares outstanding for ARLO has been increased compared to 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.
ARLO Yearly Shares OutstandingARLO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
ARLO Yearly Total Debt VS Total AssetsARLO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

2.2 Solvency

  • An Altman-Z score of 5.44 indicates that ARLO is not in any danger for bankruptcy at the moment.
  • ARLO has a Altman-Z score of 5.44. This is in the better half of the industry: ARLO outperforms 75.81% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.44
ROIC/WACC0.5
WACC9.52%
ARLO Yearly LT Debt VS Equity VS FCFARLO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

2.3 Liquidity

  • A Current Ratio of 1.51 indicates that ARLO should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.51, ARLO is doing worse than 75.81% of the companies in the same industry.
  • ARLO has a Quick Ratio of 1.27. This is a normal value and indicates that ARLO is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of ARLO (1.27) is worse than 65.32% of its industry peers.
Industry RankSector Rank
Current Ratio 1.51
Quick Ratio 1.27
ARLO Yearly Current Assets VS Current LiabilitesARLO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ARLO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 75.00% over the past year.
  • The Revenue has been growing slightly by 3.60% in the past year.
  • The Revenue has been growing by 8.18% on average over the past years. This is quite good.
EPS 1Y (TTM)75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%120%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y2.58%
Revenue growth 5Y8.18%
Sales Q2Q%16.22%

3.2 Future

  • ARLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.86% yearly.
  • Based on estimates for the next years, ARLO will show a quite strong growth in Revenue. The Revenue will grow by 8.57% on average per year.
EPS Next Y17.77%
EPS Next 2Y17.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.91%
Revenue Next 2Y8.57%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
ARLO Yearly Revenue VS EstimatesARLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M
ARLO Yearly EPS VS EstimatesARLO Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 -0.5 -1

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4

4. ARLO Valuation Analysis

4.1 Price/Earnings Ratio

  • ARLO is valuated rather expensively with a Price/Earnings ratio of 20.50.
  • ARLO's Price/Earnings ratio is a bit cheaper when compared to the industry. ARLO is cheaper than 79.84% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. ARLO is around the same levels.
  • Based on the Price/Forward Earnings ratio of 17.41, the valuation of ARLO can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, ARLO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
  • ARLO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.5
Fwd PE 17.41
ARLO Price Earnings VS Forward Price EarningsARLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ARLO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than the industry average as 75.81% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 22.92
EV/EBITDA 110.57
ARLO Per share dataARLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • ARLO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ARLO's earnings are expected to grow with 17.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y17.86%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ARLO Dividend Analysis

5.1 Amount

  • No dividends for ARLO!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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ARLO Fundamentals: All Metrics, Ratios and Statistics

ARLO TECHNOLOGIES INC

NYSE:ARLO (3/20/2026, 8:04:00 PM)

Premarket: 14.4 +0.05 (+0.35%)

14.35

-0.5 (-3.37%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners103.02%
Inst Owner Change1.77%
Ins Owners3.24%
Ins Owner Change-11.34%
Market Cap1.53B
Revenue(TTM)529.30M
Net Income(TTM)14.93M
Analysts81.82
Price Target23.66 (64.88%)
Short Float %10.26%
Short Ratio6.96
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)17.88%
Min EPS beat(2)4.4%
Max EPS beat(2)31.36%
EPS beat(4)4
Avg EPS beat(4)17.63%
Min EPS beat(4)4.4%
Max EPS beat(4)31.36%
EPS beat(8)7
Avg EPS beat(8)9.77%
EPS beat(12)11
Avg EPS beat(12)26.69%
EPS beat(16)15
Avg EPS beat(16)43.1%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)2.17%
Revenue beat(4)2
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)2.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.46%
Revenue beat(12)5
Avg Revenue beat(12)0.11%
Revenue beat(16)8
Avg Revenue beat(16)1.37%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)4.93%
EPS NQ rev (3m)5.24%
EPS NY rev (1m)1.63%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)4.67%
Revenue NQ rev (3m)4.71%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 20.5
Fwd PE 17.41
P/S 2.9
P/FCF 22.92
P/OCF 19.48
P/B 11.99
P/tB 13.13
EV/EBITDA 110.57
EPS(TTM)0.7
EY4.88%
EPS(NY)0.82
Fwd EY5.74%
FCF(TTM)0.63
FCFY4.36%
OCF(TTM)0.74
OCFY5.13%
SpS4.95
BVpS1.2
TBVpS1.09
PEG (NY)1.15
PEG (5Y)N/A
Graham Number4.34
Profitability
Industry RankSector Rank
ROA 4.81%
ROE 11.68%
ROCE 5.97%
ROIC 4.72%
ROICexc N/A
ROICexgc N/A
OM 1.56%
PM (TTM) 2.82%
GM 43.99%
FCFM 12.64%
ROA(3y)-4.38%
ROA(5y)-10.01%
ROE(3y)-13.3%
ROE(5y)-30.82%
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 3Y16.62%
GM growth 5Y23.18%
F-Score8
Asset Turnover1.7
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 300.84%
Cap/Sales 2.23%
Interest Coverage 250
Cash Conversion 646.16%
Profit Quality 448.18%
Current Ratio 1.51
Quick Ratio 1.27
Altman-Z 5.44
F-Score8
WACC9.52%
ROIC/WACC0.5
Cap/Depr(3y)148.64%
Cap/Depr(5y)105.2%
Cap/Sales(3y)1.11%
Cap/Sales(5y)0.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%120%
EPS Next Y17.77%
EPS Next 2Y17.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y2.58%
Revenue growth 5Y8.18%
Sales Q2Q%16.22%
Revenue Next Year7.91%
Revenue Next 2Y8.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y126.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y53.44%
OCF growth 3YN/A
OCF growth 5YN/A

ARLO TECHNOLOGIES INC / ARLO Fundamental Analysis FAQ

What is the fundamental rating for ARLO stock?

ChartMill assigns a fundamental rating of 5 / 10 to ARLO.


Can you provide the valuation status for ARLO TECHNOLOGIES INC?

ChartMill assigns a valuation rating of 4 / 10 to ARLO TECHNOLOGIES INC (ARLO). This can be considered as Fairly Valued.


What is the profitability of ARLO stock?

ARLO TECHNOLOGIES INC (ARLO) has a profitability rating of 4 / 10.


What is the financial health of ARLO TECHNOLOGIES INC (ARLO) stock?

The financial health rating of ARLO TECHNOLOGIES INC (ARLO) is 6 / 10.


What is the expected EPS growth for ARLO TECHNOLOGIES INC (ARLO) stock?

The Earnings per Share (EPS) of ARLO TECHNOLOGIES INC (ARLO) is expected to grow by 17.77% in the next year.