ARRAY TECHNOLOGIES INC (ARRY) Stock Fundamental Analysis
NASDAQ:ARRY - Nasdaq - US04271T1007 - Common Stock - Currency: USD
Taking everything into account, ARRY scores 5 out of 10 in our fundamental rating. ARRY was compared to 95 industry peers in the Electrical Equipment industry. ARRY has an average financial health and profitability rating. ARRY scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year ARRY was profitable.
ARRY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ARRY reported negative net income in multiple years.
In multiple years ARRY reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -19.81%, ARRY is in line with its industry, outperforming 47.37% of the companies in the same industry.
ARRY's Return On Equity of -87.28% is on the low side compared to the rest of the industry. ARRY is outperformed by 60.00% of its industry peers.
The Return On Invested Capital of ARRY (9.12%) is better than 83.16% of its industry peers.
| 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
With a decent Operating Margin value of 11.25%, ARRY is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ARRY has declined.
ARRY has a Gross Margin of 29.96%. This is in the better half of the industry: ARRY outperforms 68.42% of its industry peers.
In the last couple of years the Gross Margin of ARRY has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARRY is still creating some value.
ARRY has more shares outstanding than it did 1 year ago.
ARRY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARRY has a worse debt to assets ratio.
2.2 Solvency
ARRY has an Altman-Z score of 1.73. This is a bad value and indicates that ARRY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.73, ARRY perfoms like the industry average, outperforming 58.95% 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 better Debt to FCF ratio (9.07) than 66.32% of its industry peers.
A Debt/Equity ratio of 1.99 is on the high side and indicates that ARRY has dependencies on debt financing.
The Debt to Equity ratio of ARRY (1.99) is worse than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.07 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.24
WACC7.33%
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.
ARRY's Current ratio of 2.39 is fine compared to the rest of the industry. ARRY outperforms 68.42% of its industry peers.
A Quick Ratio of 1.93 indicates that ARRY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.93, ARRY is in the better half of the industry, outperforming 74.74% 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%.
Measured over the past years, ARRY shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.57% on average per year.
ARRY shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.31%.
ARRY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.17% yearly.
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
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.55% on average over the next years. This is quite good.
EPS Next Y8.63%
EPS Next 2Y15.99%
EPS Next 3Y14.25%
EPS Next 5Y8.75%
Revenue Next Year22.02%
Revenue Next 2Y16.26%
Revenue Next 3Y13.73%
Revenue Next 5Y10.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ARRY is valuated reasonably with a Price/Earnings ratio of 10.44.
ARRY's Price/Earnings ratio is rather cheap when compared to the industry. ARRY is cheaper than 92.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. ARRY is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.68, the valuation of ARRY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARRY indicates a rather cheap valuation: ARRY is cheaper than 93.68% of the companies listed in the same industry.
ARRY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRY is valued cheaply inside the industry as 92.63% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARRY is valued cheaper than 87.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.03 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
ARRY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ARRY's earnings are expected to grow with 14.25% in the coming years.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y15.99%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
No dividends for ARRY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.89
-0.22 (-3.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners124.24%
Inst Owner Change-4.23%
Ins Owners0.27%
Ins Owner Change6.02%
Market Cap1.05B
Analysts76.36
Price Target8.11 (17.71%)
Short Float %14.86%
Short Ratio4.05
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)-6.61%
PT rev (3m)-21.32%
EPS NQ rev (1m)6.87%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)1.54%
EPS NY rev (3m)-20.52%
Revenue NQ rev (1m)2.45%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 8.68 | ||
| P/S | 0.99 | ||
| P/FCF | 14.03 | ||
| P/OCF | 11.25 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.21 |
EPS(TTM)0.66
EY9.58%
EPS(NY)0.79
Fwd EY11.52%
FCF(TTM)0.49
FCFY7.13%
OCF(TTM)0.61
OCFY8.89%
SpS6.98
BVpS2.12
TBVpS-0.11
PEG (NY)1.21
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 | 1.73 |
F-Score3
WACC7.33%
ROIC/WACC1.24
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 5Y8.75%
Revenue 1Y (TTM)-21.31%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%97.1%
Revenue Next Year22.02%
Revenue Next 2Y16.26%
Revenue Next 3Y13.73%
Revenue Next 5Y10.55%
EBIT growth 1Y-31.57%
EBIT growth 3YN/A
EBIT growth 5Y3.88%
EBIT Next Year476.61%
EBIT Next 3Y92.67%
EBIT Next 5Y51.4%
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%