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 93 industry peers in the Electrical Equipment industry. Both the profitability and the financial health of ARRY get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARRY.
1. Profitability
1.1 Basic Checks
In the past year ARRY was profitable.
ARRY had a positive operating cash flow in the past year.
In multiple years ARRY reported negative net income over the last 5 years.
In multiple years ARRY reported negative operating cash flow during the last 5 years.
1.2 Ratios
ARRY's Return On Assets of -19.81% is in line compared to the rest of the industry. ARRY outperforms 50.54% of its industry peers.
ARRY's Return On Equity of -87.28% is in line compared to the rest of the industry. ARRY outperforms 43.01% of its industry peers.
ARRY has a better Return On Invested Capital (9.12%) than 81.72% 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
ARRY has a Operating Margin of 11.25%. This is in the better half of the industry: ARRY outperforms 79.57% of its industry peers.
ARRY's Operating Margin has declined in the last couple of years.
ARRY has a Gross Margin of 29.96%. This is in the better half of the industry: ARRY outperforms 68.82% 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.
ARRY has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARRY has been increased compared to 5 years ago.
The debt/assets ratio for ARRY is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that ARRY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.73, ARRY perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
The Debt to FCF ratio of ARRY is 9.07, which is on the high side as it means it would take ARRY, 9.07 years of fcf income to pay off all of its debts.
ARRY's Debt to FCF ratio of 9.07 is fine compared to the rest of the industry. ARRY outperforms 69.89% 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.
ARRY has a Debt to Equity ratio of 1.99. This is in the lower half of the industry: ARRY underperforms 75.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.07 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.26
WACC7.25%
2.3 Liquidity
A Current Ratio of 2.39 indicates that ARRY has no problem at all paying its short term obligations.
ARRY has a Current ratio of 2.39. This is in the better half of the industry: ARRY outperforms 66.67% of its industry peers.
A Quick Ratio of 1.93 indicates that ARRY should not have too much problems paying its short term obligations.
ARRY's Quick ratio of 1.93 is fine compared to the rest of the industry. ARRY outperforms 74.19% of its industry peers.
| 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%.
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
The Earnings Per Share is expected to grow by 12.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.73% on average over the next years. This is quite good.
EPS Next Y10.23%
EPS Next 2Y19.96%
EPS Next 3Y16.2%
EPS Next 5Y12.01%
Revenue Next Year22.45%
Revenue Next 2Y17.73%
Revenue Next 3Y14.99%
Revenue Next 5Y10.73%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 10.68, the valuation of ARRY can be described as very reasonable.
Based on the Price/Earnings ratio, ARRY is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.93. ARRY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.30 indicates a reasonable valuation of ARRY.
ARRY's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARRY is cheaper than 96.77% of the companies in the same industry.
ARRY is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRY is valued cheaply inside the industry as 95.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARRY is valued cheaply inside the industry as 92.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
The 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 16.20% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y19.96%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.05
+0.14 (+2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.77%
Inst Owner Change-1.72%
Ins Owners0.5%
Ins Owner Change10.32%
Market Cap1.08B
Analysts76
Price Target8.96 (27.09%)
Short Float %19.25%
Short Ratio3.19
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)2.52%
PT rev (3m)9.89%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)8.48%
EPS NY rev (1m)1.49%
EPS NY rev (3m)3.03%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 8.3 | ||
| P/S | 1.01 | ||
| P/FCF | 14.36 | ||
| P/OCF | 11.51 | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.23 |
EPS(TTM)0.66
EY9.36%
EPS(NY)0.85
Fwd EY12.04%
FCF(TTM)0.49
FCFY6.96%
OCF(TTM)0.61
OCFY8.69%
SpS6.98
BVpS2.12
TBVpS-0.11
PEG (NY)1.04
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
WACC7.25%
ROIC/WACC1.26
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 Y10.23%
EPS Next 2Y19.96%
EPS Next 3Y16.2%
EPS Next 5Y12.01%
Revenue 1Y (TTM)-21.31%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%97.1%
Revenue Next Year22.45%
Revenue Next 2Y17.73%
Revenue Next 3Y14.99%
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 5Y51.43%
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%