ARRAY TECHNOLOGIES INC (ARRY) Stock Fundamental Analysis
USA - NASDAQ:ARRY - US04271T1007 - Common Stock
8.66 USD
+0.27 (+3.22%)
8.66 USD
0 (0%)
ARRY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 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.
In the past year ARRY had a positive cash flow from operations.
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
The Return On Assets of ARRY (-17.24%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -72.79%, ARRY is in line with its industry, outperforming 45.65% of the companies in the same industry.
The Return On Invested Capital of ARRY (9.13%) is better than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.24% | ||
| ROE | -72.79% | ||
| ROIC | 9.13% |
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 10.80%. This is amongst the best in the industry. ARRY outperforms 81.52% of its industry peers.
ARRY's Operating Margin has declined in the last couple of years.
ARRY has a Gross Margin (28.19%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ARRY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 28.19% |
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.
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
An Altman-Z score of 1.85 indicates that ARRY is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARRY's Altman-Z score of 1.85 is in line compared to the rest of the industry. ARRY outperforms 58.70% of its industry peers.
The Debt to FCF ratio of ARRY is 6.29, which is on the high side as it means it would take ARRY, 6.29 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.29, ARRY is doing good in the industry, outperforming 72.83% of the companies in the same industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that ARRY has dependencies on debt financing.
ARRY has a worse Debt to Equity ratio (1.80) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.25
WACC7.28%
2.3 Liquidity
ARRY has a Current Ratio of 2.22. This indicates that ARRY is financially healthy and has no problem in meeting its short term obligations.
ARRY has a Current ratio of 2.22. This is in the better half of the industry: ARRY outperforms 64.13% of its industry peers.
ARRY has a Quick Ratio of 1.84. This is a normal value and indicates that ARRY is financially healthy and should not expect problems in meeting its short term obligations.
ARRY's Quick ratio of 1.84 is fine compared to the rest of the industry. ARRY outperforms 70.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
ARRY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.19%.
The Earnings Per Share has been growing by 65.57% on average over the past years. This is a very strong growth
Looking at the last year, ARRY shows a small growth in Revenue. The Revenue has grown by 6.36% in the last year.
The Revenue has been growing slightly by 7.17% on average over the past years.
EPS 1Y (TTM)5.19%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%41.63%
3.2 Future
Based on estimates for the next years, ARRY will show a small growth in Earnings Per Share. The EPS will grow by 7.71% on average per year.
The Revenue is expected to grow by 10.47% on average over the next years. This is quite good.
EPS Next Y16.29%
EPS Next 2Y25.47%
EPS Next 3Y21.78%
EPS Next 5Y7.71%
Revenue Next Year32.57%
Revenue Next 2Y23.14%
Revenue Next 3Y17.83%
Revenue Next 5Y10.47%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.20 indicates a correct valuation of ARRY.
93.48% of the companies in the same industry are more expensive than ARRY, based on the Price/Earnings ratio.
ARRY is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.32, the valuation of ARRY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ARRY is valued cheaply inside the industry as 96.74% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, ARRY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
95.65% of the companies in the same industry are more expensive than ARRY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARRY indicates a rather cheap valuation: ARRY is cheaper than 93.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 9.29 |
4.3 Compensation for Growth
ARRY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARRY's earnings are expected to grow with 21.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y25.47%
EPS Next 3Y21.78%
5. Dividend
5.1 Amount
ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.66
+0.27 (+3.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners122.44%
Inst Owner Change2.05%
Ins Owners0.51%
Ins Owner Change5.08%
Market Cap1.32B
Revenue(TTM)1.17B
Net Income(TTM)-265898000
Analysts77.06
Price Target9.11 (5.2%)
Short Float %25.4%
Short Ratio5.03
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)2
Avg EPS beat(2)33.72%
Min EPS beat(2)25.01%
Max EPS beat(2)42.44%
EPS beat(4)3
Avg EPS beat(4)19.81%
Min EPS beat(4)-9.27%
Max EPS beat(4)42.44%
EPS beat(8)7
Avg EPS beat(8)72.94%
EPS beat(12)11
Avg EPS beat(12)121.34%
EPS beat(16)13
Avg EPS beat(16)100.29%
Revenue beat(2)2
Avg Revenue beat(2)17.19%
Min Revenue beat(2)12.1%
Max Revenue beat(2)22.27%
Revenue beat(4)3
Avg Revenue beat(4)8.1%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)22.27%
Revenue beat(8)6
Avg Revenue beat(8)5.76%
Revenue beat(12)10
Avg Revenue beat(12)8.8%
Revenue beat(16)13
Avg Revenue beat(16)8%
PT rev (1m)-1.44%
PT rev (3m)1.72%
EPS NQ rev (1m)2.32%
EPS NQ rev (3m)25.09%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)5.51%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)18.55%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)8.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.32 | ||
| P/S | 1.13 | ||
| P/FCF | 11.99 | ||
| P/OCF | 9.92 | ||
| P/B | 3.62 | ||
| P/tB | 72.11 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)0.71
EY8.2%
EPS(NY)0.93
Fwd EY10.73%
FCF(TTM)0.72
FCFY8.34%
OCF(TTM)0.87
OCFY10.08%
SpS7.67
BVpS2.39
TBVpS0.12
PEG (NY)0.75
PEG (5Y)N/A
Graham Number6.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.24% | ||
| ROE | -72.79% | ||
| ROCE | 11.78% | ||
| ROIC | 9.13% | ||
| ROICexc | 14.07% | ||
| ROICexgc | 28.04% | ||
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 28.19% | ||
| FCFM | 9.41% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.29 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 50.62% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 3.42 | ||
| Cash Conversion | 77.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 1.85 |
F-Score3
WACC7.28%
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)5.19%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y16.29%
EPS Next 2Y25.47%
EPS Next 3Y21.78%
EPS Next 5Y7.71%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%41.63%
Revenue Next Year32.57%
Revenue Next 2Y23.14%
Revenue Next 3Y17.83%
Revenue Next 5Y10.47%
EBIT growth 1Y6.85%
EBIT growth 3YN/A
EBIT growth 5Y3.88%
EBIT Next Year491.81%
EBIT Next 3Y97.17%
EBIT Next 5Y49.06%
FCF growth 1Y-56.35%
FCF growth 3YN/A
FCF growth 5Y-18.84%
OCF growth 1Y-50.39%
OCF growth 3YN/A
OCF growth 5Y-16.79%
ARRAY TECHNOLOGIES INC / ARRY FAQ
What is the ChartMill fundamental rating of ARRAY TECHNOLOGIES INC (ARRY) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ARRY.
Can you provide the valuation status for ARRAY TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 8 / 10 to ARRAY TECHNOLOGIES INC (ARRY). This can be considered as Undervalued.
Can you provide the profitability details for ARRAY TECHNOLOGIES INC?
ARRAY TECHNOLOGIES INC (ARRY) has a profitability rating of 4 / 10.
What are the PE and PB ratios of ARRAY TECHNOLOGIES INC (ARRY) stock?
The Price/Earnings (PE) ratio for ARRAY TECHNOLOGIES INC (ARRY) is 12.2 and the Price/Book (PB) ratio is 3.62.
How financially healthy is ARRAY TECHNOLOGIES INC?
The financial health rating of ARRAY TECHNOLOGIES INC (ARRY) is 4 / 10.