ARRAY TECHNOLOGIES INC (ARRY) Stock Fundamental Analysis
NASDAQ:ARRY - Nasdaq - US04271T1007 - Common Stock - Currency: USD
ARRY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 94 industry peers in the Electrical Equipment industry. ARRY has only an average score on both its financial health and profitability. ARRY may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ARRY was profitable.
In the past year ARRY had a positive cash flow from operations.
In multiple years ARRY reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: ARRY reported negative operating cash flow in multiple years.
1.2 Ratios
ARRY has a Return On Assets (-19.81%) which is comparable to the rest of the industry.
ARRY has a Return On Equity of -87.28%. This is comparable to the rest of the industry: ARRY outperforms 41.49% of its industry peers.
With an excellent Return On Invested Capital value of 9.12%, ARRY belongs to the best of the industry, outperforming 81.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.81% | ||
| ROE | -87.28% | ||
| ROIC | 9.12% |
ROA(3y)-6.1%
ROA(5y)-3.02%
ROE(3y)-32.93%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of ARRY (11.25%) is better than 79.79% of its industry peers.
In the last couple of years the Operating Margin of ARRY has declined.
ARRY has a better Gross Margin (29.96%) than 70.21% of its industry peers.
ARRY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.25% | ||
| PM (TTM) | N/A | ||
| GM | 29.96% |
OM growth 3YN/A
OM growth 5Y-3.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y49.56%
GM growth 5Y6.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARRY is creating some value.
The number of shares outstanding for ARRY has been increased compared to 1 year ago.
ARRY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARRY is higher compared to a year ago.
2.2 Solvency
ARRY has an Altman-Z score of 1.77. This is a bad value and indicates that ARRY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.77, ARRY is in line with its industry, outperforming 58.51% of the companies in the same industry.
ARRY has a debt to FCF ratio of 9.07. This is a negative value and a sign of low solvency as ARRY would need 9.07 years to pay back of all of its debts.
ARRY has a Debt to FCF ratio of 9.07. This is in the better half of the industry: ARRY outperforms 69.15% of its industry peers.
ARRY has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
ARRY has a worse Debt to Equity ratio (1.99) than 75.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.07 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.25
WACC7.31%
2.3 Liquidity
ARRY has a Current Ratio of 2.39. This indicates that ARRY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.39, ARRY is doing good in the industry, outperforming 65.96% of the companies in the same industry.
ARRY has a Quick Ratio of 1.93. This is a normal value and indicates that ARRY is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.93, ARRY is doing good in the industry, outperforming 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
ARRY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.16%.
The Earnings Per Share has been growing by 65.57% on average over the past years. This is a very strong growth
The Revenue for ARRY has decreased by -21.31% in the past year. This is quite bad
The Revenue has been growing slightly by 7.17% on average over the past years.
EPS 1Y (TTM)-30.16%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%116.67%
Revenue 1Y (TTM)-21.31%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%97.1%
3.2 Future
ARRY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.51% yearly.
Based on estimates for the next years, ARRY will show a quite strong growth in Revenue. The Revenue will grow by 10.73% on average per year.
EPS Next Y8.63%
EPS Next 2Y15.99%
EPS Next 3Y14.25%
EPS Next 5Y8.51%
Revenue Next Year21.91%
Revenue Next 2Y16.49%
Revenue Next 3Y14.06%
Revenue Next 5Y10.73%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.26, the valuation of ARRY can be described as very reasonable.
ARRY's Price/Earnings ratio is rather cheap when compared to the industry. ARRY is cheaper than 92.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. ARRY is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.36, the valuation of ARRY can be described as very reasonable.
91.49% of the companies in the same industry are more expensive than ARRY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARRY to the average of the S&P500 Index (22.39), we can say ARRY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
94.68% of the companies in the same industry are more expensive than ARRY, based on the Enterprise Value to EBITDA ratio.
87.23% of the companies in the same industry are more expensive than ARRY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.14 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
ARRY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARRY's earnings are expected to grow with 14.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y15.99%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.43
-0.34 (-4.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners124.24%
Inst Owner Change-4.25%
Ins Owners0.27%
Ins Owner Change10.62%
Market Cap1.13B
Analysts76.25
Price Target8.55 (15.07%)
Short Float %14.35%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.58%
Min EPS beat(2)-9.27%
Max EPS beat(2)42.44%
EPS beat(4)3
Avg EPS beat(4)32.74%
Min EPS beat(4)-9.27%
Max EPS beat(4)76.73%
EPS beat(8)7
Avg EPS beat(8)89.33%
EPS beat(12)11
Avg EPS beat(12)136.35%
EPS beat(16)13
Avg EPS beat(16)141.22%
Revenue beat(2)2
Avg Revenue beat(2)6.31%
Min Revenue beat(2)0.51%
Max Revenue beat(2)12.1%
Revenue beat(4)3
Avg Revenue beat(4)4.6%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)12.1%
Revenue beat(8)6
Avg Revenue beat(8)4.34%
Revenue beat(12)10
Avg Revenue beat(12)8.79%
Revenue beat(16)12
Avg Revenue beat(16)5.6%
PT rev (1m)5.5%
PT rev (3m)-11.11%
EPS NQ rev (1m)6.75%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)1.54%
EPS NY rev (3m)-20.52%
Revenue NQ rev (1m)2.16%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 9.36 | ||
| P/S | 1.06 | ||
| P/FCF | 15.14 | ||
| P/OCF | 12.13 | ||
| P/B | 3.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.7 |
EPS(TTM)0.66
EY8.88%
EPS(NY)0.79
Fwd EY10.68%
FCF(TTM)0.49
FCFY6.61%
OCF(TTM)0.61
OCFY8.24%
SpS6.98
BVpS2.12
TBVpS-0.11
PEG (NY)1.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.81% | ||
| ROE | -87.28% | ||
| ROCE | 11.77% | ||
| ROIC | 9.12% | ||
| ROICexc | 13.87% | ||
| ROICexgc | 28.26% | ||
| OM | 11.25% | ||
| PM (TTM) | N/A | ||
| GM | 29.96% | ||
| FCFM | 7.03% |
ROA(3y)-6.1%
ROA(5y)-3.02%
ROE(3y)-32.93%
ROE(5y)N/A
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 5Y-46.48%
OM growth 3YN/A
OM growth 5Y-3.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y49.56%
GM growth 5Y6.91%
F-Score3
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.07 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 38.15% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 55.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 1.77 |
F-Score3
WACC7.31%
ROIC/WACC1.25
Cap/Depr(3y)25.56%
Cap/Depr(5y)18.91%
Cap/Sales(3y)1.25%
Cap/Sales(5y)0.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.16%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%116.67%
EPS Next Y8.63%
EPS Next 2Y15.99%
EPS Next 3Y14.25%
EPS Next 5Y8.51%
Revenue 1Y (TTM)-21.31%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%97.1%
Revenue Next Year21.91%
Revenue Next 2Y16.49%
Revenue Next 3Y14.06%
Revenue Next 5Y10.73%
EBIT growth 1Y-31.57%
EBIT growth 3YN/A
EBIT growth 5Y3.88%
EBIT Next Year480.08%
EBIT Next 3Y89.94%
EBIT Next 5Y49.99%
FCF growth 1Y-66.76%
FCF growth 3YN/A
FCF growth 5Y-18.84%
OCF growth 1Y-60.65%
OCF growth 3YN/A
OCF growth 5Y-16.79%