ARLO TECHNOLOGIES INC (ARLO) Stock Fundamental Analysis
NYSE:ARLO - New York Stock Exchange, Inc. - US04206A1016 - Common Stock - Currency: USD
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. ARLO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ARLO has a decent growth rate and is not valued too expensively.
1. Profitability
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 each of the past 5 years.
In multiple years ARLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
ARLO's Return On Assets of -7.32% is on the low side compared to the rest of the industry. ARLO is outperformed by 60.00% of its industry peers.
Looking at the Return On Equity, with a value of -20.99%, ARLO is doing worse than 64.00% 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
ARLO has a Gross Margin of 38.13%. This is in the better half of the industry: ARLO outperforms 67.20% 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.
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.
2.2 Solvency
ARLO has an Altman-Z score of 5.35. This indicates that ARLO is financially healthy and has little risk of bankruptcy at the moment.
ARLO has a better Altman-Z score (5.35) than 78.40% 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 | 5.35 |
ROIC/WACCN/A
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ARLO should not have too much problems paying its short term obligations.
ARLO's Current ratio of 1.42 is on the low side compared to the rest of the industry. ARLO is outperformed by 80.00% of its industry peers.
A Quick Ratio of 1.22 indicates that ARLO should not have too much problems paying its short term obligations.
ARLO has a Quick ratio of 1.22. This is in the lower half of the industry: ARLO underperforms 68.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.43% over the past year.
ARLO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.27%.
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)0.27%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%-4.13%
3.2 Future
Based on estimates for the next years, ARLO will show a very strong growth in Earnings Per Share. The EPS will grow by 36.67% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 37.46, 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 valuation a bit more expensive than the S&P500 average which is at 26.32.
With a Price/Forward Earnings ratio of 23.06, ARLO is valued on the expensive side.
ARLO's Price/Forward Earnings ratio is in line with the industry average.
ARLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 23.06 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.1 | ||
| 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)0.69
PEG (5Y)N/A
EPS Next 2Y36.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ARLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.23
+0.16 (+0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners88.93%
Inst Owner Change2.29%
Ins Owners5.44%
Ins Owner Change-6.59%
Market Cap1.78B
Analysts81.82
Price Target21.42 (24.32%)
Short Float %5.76%
Short Ratio6.71
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)7.69%
PT rev (3m)12.9%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)6.13%
EPS NY rev (1m)0%
EPS NY rev (3m)14.1%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 23.06 | ||
| P/S | 3.52 | ||
| P/FCF | 31.1 | ||
| P/OCF | 28.54 | ||
| P/B | 17.24 | ||
| P/tB | 19.3 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.46
EY2.67%
EPS(NY)0.75
Fwd EY4.34%
FCF(TTM)0.55
FCFY3.22%
OCF(TTM)0.6
OCFY3.5%
SpS4.89
BVpS1
TBVpS0.89
PEG (NY)0.69
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 | 5.35 |
F-Score4
WACC9.05%
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)0.27%
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-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%