ARRAY TECHNOLOGIES INC (ARRY) Stock Fundamental Analysis
NASDAQ:ARRY - Nasdaq - US04271T1007 - Common Stock - Currency: USD
ARRY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 94 industry peers in the Electrical Equipment industry. There are concerns on the financial health of ARRY while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARRY.
1. Profitability
1.1 Basic Checks
ARRY had positive earnings in the past year.
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
The Return On Assets of ARRY (-19.81%) is comparable to the rest of the industry.
ARRY has a Return On Equity (-87.28%) which is comparable to the rest of the industry.
The Return On Invested Capital of ARRY (9.12%) is better than 81.91% 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 79.79% 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 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) below the Cost of Capital (WACC), ARRY is destroying value.
The number of shares outstanding for ARRY has been increased compared to 1 year ago.
The number of shares outstanding for ARRY has been increased compared to 5 years ago.
Compared to 1 year ago, ARRY has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that ARRY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.80, ARRY perfoms like the industry average, outperforming 57.45% 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.
Looking at the Debt to FCF ratio, with a value of 9.07, ARRY is in the better half of the industry, outperforming 69.15% of the companies in the same industry.
ARRY has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
ARRY's Debt to Equity ratio of 1.99 is on the low side compared to the rest of the industry. ARRY is outperformed by 75.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.07 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.97
WACC9.45%
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.
Looking at the Current ratio, with a value of 2.39, ARRY is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
A Quick Ratio of 1.93 indicates that ARRY should not have too much problems paying its short term obligations.
The Quick ratio of ARRY (1.93) is better than 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for ARRY have decreased strongly by -30.16% in the last year.
ARRY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.57% yearly.
The Revenue for ARRY has decreased by -21.31% in the past year. This is quite bad
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
Based on estimates for the next years, ARRY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.01% on average per year.
ARRY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.73% yearly.
EPS Next Y8.6%
EPS Next 2Y17.23%
EPS Next 3Y14.55%
EPS Next 5Y12.01%
Revenue Next Year21.8%
Revenue Next 2Y16.4%
Revenue Next 3Y14.06%
Revenue Next 5Y10.73%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 11.80 indicates a reasonable valuation of ARRY.
92.55% 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 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.61, which indicates a very decent valuation of ARRY.
Based on the Price/Forward Earnings ratio, ARRY is valued cheaply inside the industry as 92.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. ARRY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
93.62% 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 89.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | 9.02 |
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 14.55% in the coming years.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y17.23%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.79
+0.83 (+11.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.77%
Inst Owner Change-4.25%
Ins Owners0.5%
Ins Owner Change10.32%
Market Cap1.19B
Analysts76.25
Price Target8.74 (12.2%)
Short Float %13.51%
Short Ratio2.44
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)7.76%
PT rev (3m)0.64%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 9.61 | ||
| P/S | 1.12 | ||
| P/FCF | 15.87 | ||
| P/OCF | 12.72 | ||
| P/B | 3.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)0.66
EY8.47%
EPS(NY)0.81
Fwd EY10.41%
FCF(TTM)0.49
FCFY6.3%
OCF(TTM)0.61
OCFY7.86%
SpS6.98
BVpS2.12
TBVpS-0.11
PEG (NY)1.37
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 | 1.8 |
F-Score3
WACC9.45%
ROIC/WACC0.97
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 Y8.6%
EPS Next 2Y17.23%
EPS Next 3Y14.55%
EPS Next 5Y12.01%
Revenue 1Y (TTM)-21.31%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%97.1%
Revenue Next Year21.8%
Revenue Next 2Y16.4%
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 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%