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ARLO TECHNOLOGIES INC (ARLO) Stock Fundamental Analysis

NYSE:ARLO - New York Stock Exchange, Inc. - US04206A1016 - Common Stock - Currency: USD

13.38  -0.19 (-1.4%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ARLO. ARLO was compared to 125 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year ARLO was profitable.
ARLO had a positive operating cash flow in the past year.
In the past 5 years ARLO always reported negative net income.
In multiple years ARLO reported negative operating cash flow during the last 5 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 0 50M -50M -100M

1.2 Ratios

ARLO's Return On Assets of -10.22% is on the low side compared to the rest of the industry. ARLO is outperformed by 63.20% of its industry peers.
Looking at the Return On Equity, with a value of -30.23%, ARLO is doing worse than 68.80% of the companies in the same industry.
Industry RankSector Rank
ROA -10.22%
ROE -30.23%
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
ARLO Yearly ROA, ROE, ROICARLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60

1.3 Margins

Looking at the Gross Margin, with a value of 36.70%, ARLO is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 36.7%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.92%
GM growth 5Y30.48%
ARLO Yearly Profit, Operating, Gross MarginsARLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

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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
The number of shares outstanding for ARLO has been increased compared to 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.
ARLO Yearly Shares OutstandingARLO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 100M 200M 300M 400M 500M

2.2 Solvency

An Altman-Z score of 4.12 indicates that ARLO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.12, ARLO is doing good in the industry, outperforming 69.60% 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 4.12
ROIC/WACCN/A
WACC9.44%
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 0 100M 200M

2.3 Liquidity

A Current Ratio of 1.49 indicates that ARLO should not have too much problems paying its short term obligations.
ARLO's Current ratio of 1.49 is on the low side compared to the rest of the industry. ARLO is outperformed by 73.60% of its industry peers.
ARLO has a Quick Ratio of 1.26. 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 1.26 is on the low side compared to the rest of the industry. ARLO is outperformed by 63.20% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 1.26
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 100M 200M 300M 400M 500M

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4

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 4.01% in the past year.
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)31.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%-4.13%

3.2 Future

The Earnings Per Share is expected to grow by 36.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y53.97%
EPS Next 2Y36.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2%
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.
ARLO Yearly Revenue VS EstimatesARLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M 500M
ARLO Yearly EPS VS EstimatesARLO Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 -1

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 29.09, the valuation of ARLO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ARLO.
ARLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 17.91, ARLO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ARLO is valued a bit cheaper than 65.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, ARLO is valued at the same level.
Industry RankSector Rank
PE 29.09
Fwd PE 17.91
ARLO Price Earnings VS Forward Price EarningsARLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than 66.40% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.54
EV/EBITDA N/A
ARLO Per share dataARLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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)0.54
PEG (5Y)N/A
EPS Next 2Y36.67%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for ARLO!.
Industry RankSector Rank
Dividend Yield N/A

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ARLO TECHNOLOGIES INC

NYSE:ARLO (5/23/2025, 9:42:54 AM)

13.38

-0.19 (-1.4%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners91.76%
Inst Owner Change2.23%
Ins Owners4.1%
Ins Owner Change-1.36%
Market Cap1.39B
Analysts81.82
Price Target19.89 (48.65%)
Short Float %5.48%
Short Ratio5.54
Dividend
Industry RankSector 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)-1.39%
Min EPS beat(2)-6.27%
Max EPS beat(2)3.5%
EPS beat(4)3
Avg EPS beat(4)1.91%
Min EPS beat(4)-6.27%
Max EPS beat(4)9.91%
EPS beat(8)7
Avg EPS beat(8)31.22%
EPS beat(12)11
Avg EPS beat(12)51.59%
EPS beat(16)15
Avg EPS beat(16)64.71%
Revenue beat(2)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)-0.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)6
Avg Revenue beat(12)1.63%
Revenue beat(16)10
Avg Revenue beat(16)2.67%
PT rev (1m)0%
PT rev (3m)9.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)1.51%
EPS NY rev (3m)14.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 29.09
Fwd PE 17.91
P/S 2.72
P/FCF 28.54
P/OCF 27.05
P/B 13.75
P/tB 15.44
EV/EBITDA N/A
EPS(TTM)0.46
EY3.44%
EPS(NY)0.75
Fwd EY5.58%
FCF(TTM)0.47
FCFY3.5%
OCF(TTM)0.49
OCFY3.7%
SpS4.93
BVpS0.97
TBVpS0.87
PEG (NY)0.54
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -10.22%
ROE -30.23%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 36.7%
FCFM 9.52%
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 Turnover1.71
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 84%
Cap/Sales 0.53%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.49
Quick Ratio 1.26
Altman-Z 4.12
F-Score5
WACC9.44%
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 Y53.97%
EPS Next 2Y36.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.01%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%-4.13%
Revenue Next Year2%
Revenue Next 2Y4.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-33.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year228.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.13%
FCF growth 3YN/A
FCF growth 5Y80.89%
OCF growth 1Y33.95%
OCF growth 3YN/A
OCF growth 5Y41.11%