ARLO TECHNOLOGIES INC (ARLO) Stock Fundamental Analysis
USA - NYSE:ARLO - US04206A1016 - Common Stock
17.87 USD
+0.4 (+2.29%)
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. While ARLO seems to be doing ok healthwise, there are quite some concerns on its profitability. ARLO is not valued too expensively and it also shows a decent 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's Return On Equity of -5.93% is in line compared to the rest of the industry. ARLO outperforms 43.55% of 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 Gross Margin of 40.19%. This is in the better half of the industry: ARLO outperforms 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 | 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.
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
ARLO has an Altman-Z score of 5.52. This indicates that ARLO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ARLO (5.52) is better than 70.97% 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 | 5.52 |
ROIC/WACCN/A
WACC9.11%
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 worse Current ratio (1.47) than 75.81% of its industry peers.
A Quick Ratio of 1.30 indicates that ARLO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, ARLO is not doing good in the industry: 63.71% 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
ARLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.90%, which is quite impressive.
ARLO shows a decrease in Revenue. In the last year, the revenue decreased by -1.75%.
Measured over the past years, ARLO shows a small growth in Revenue. The Revenue has been growing by 6.67% on average per year.
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
The Earnings Per Share is expected to grow by 43.63% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.22% on average over the next years.
EPS Next Y59.5%
EPS Next 2Y43.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.64%
Revenue Next 2Y5.22%
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
The Price/Earnings ratio is 33.72, which means the current valuation is very expensive for ARLO.
Based on the Price/Earnings ratio, ARLO is valued a bit cheaper than 62.10% of the companies in the same industry.
ARLO is valuated rather expensively when we compare the Price/Earnings ratio to 27.49, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.66, the valuation of ARLO can be described as rather expensive.
ARLO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARLO is cheaper than 68.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. ARLO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.72 | ||
| Fwd PE | 21.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARLO indicates a somewhat cheap valuation: ARLO is cheaper than 70.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.74 | ||
| 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 43.63% in the coming years.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y43.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ARLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ARLO (10/15/2025, 3:37:03 PM)
17.87
+0.4 (+2.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change0.06%
Ins Owners4.2%
Ins Owner Change-26.86%
Market Cap1.87B
Analysts81.82
Price Target23.66 (32.4%)
Short Float %9.34%
Short Ratio6.15
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)0%
PT rev (3m)10.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)1.62%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.72 | ||
| Fwd PE | 21.66 | ||
| P/S | 3.67 | ||
| P/FCF | 32.74 | ||
| P/OCF | 28.79 | ||
| P/B | 15.77 | ||
| P/tB | 17.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.53
EY2.97%
EPS(NY)0.83
Fwd EY4.62%
FCF(TTM)0.55
FCFY3.05%
OCF(TTM)0.62
OCFY3.47%
SpS4.86
BVpS1.13
TBVpS1.03
PEG (NY)0.57
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 | 5.52 |
F-Score5
WACC9.11%
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 Y59.5%
EPS Next 2Y43.63%
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 Year2.64%
Revenue Next 2Y5.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year247.67%
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%