ARRAY TECHNOLOGIES INC (ARRY)
US04271T1007 - Common Stock
We assign a fundamental rating of 6 out of 10 to ARRY. ARRY was compared to 86 industry peers in the Electrical Equipment industry. ARRY has only an average score on both its financial health and profitability. ARRY is growing strongly while it also seems undervalued. This is an interesting combination This makes ARRY very considerable for value and growth investing!
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
Looking at the Return On Assets, with a value of 4.79%, ARRY is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
ARRY has a Return On Equity of 13.38%. This is amongst the best in the industry. ARRY outperforms 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.10%, ARRY belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 13.38% | ||
| ROIC | 12.1% |
ROA(3y)-1.11%
ROA(5y)2%
ROE(3y)-11.85%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.18%, ARRY is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
ARRY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 13.58%, ARRY belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
ARRY's Operating Margin has improved in the last couple of years.
The Gross Margin of ARRY (26.82%) is better than 63.10% of its industry peers.
In the last couple of years the Gross Margin of ARRY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.58% | ||
| PM (TTM) | 5.18% | ||
| GM | 26.82% |
OM growth 3Y7.58%
OM growth 5YN/A
PM growth 3Y-7.12%
PM growth 5YN/A
GM growth 3Y4.29%
GM growth 5Y45.89%
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.
Compared to 1 year ago, ARRY has more shares outstanding
ARRY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARRY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.66 indicates that ARRY is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARRY's Altman-Z score of 2.66 is fine compared to the rest of the industry. ARRY outperforms 67.86% of its industry peers.
The Debt to FCF ratio of ARRY is 3.17, which is a good value as it means it would take ARRY, 3.17 years of fcf income to pay off all of its debts.
ARRY has a better Debt to FCF ratio (3.17) than 80.95% of its industry peers.
ARRY has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ARRY has a Debt to Equity ratio of 1.08. This is in the lower half of the industry: ARRY underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.18
WACC10.27%
2.3 Liquidity
ARRY has a Current Ratio of 2.48. This indicates that ARRY is financially healthy and has no problem in meeting its short term obligations.
ARRY has a better Current ratio (2.48) than 65.48% of its industry peers.
A Quick Ratio of 2.00 indicates that ARRY should not have too much problems paying its short term obligations.
ARRY has a Quick ratio of 2.00. This is in the better half of the industry: ARRY outperforms 77.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
ARRY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 224.29%, which is quite impressive.
ARRY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.44% yearly.
ARRY shows a decrease in Revenue. In the last year, the revenue decreased by -3.73%.
Measured over the past years, ARRY shows a very strong growth in Revenue. The Revenue has been growing by 40.22% on average per year.
EPS 1Y (TTM)224.29%
EPS 3Y5.44%
EPS 5YN/A
EPS growth Q2Q110%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y21.79%
Revenue growth 5Y40.22%
Revenue growth Q2Q-15.04%
3.2 Future
The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
Based on estimates for the next years, ARRY will show a quite strong growth in Revenue. The Revenue will grow by 11.52% on average per year.
EPS Next Y-3.49%
EPS Next 2Y13.5%
EPS Next 3Y11.83%
EPS Next 5Y12.89%
Revenue Next Year-12.59%
Revenue Next 2Y4.82%
Revenue Next 3Y6.11%
Revenue Next 5Y11.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.81, the valuation of ARRY can be described as reasonable.
Based on the Price/Earnings ratio, ARRY is valued cheaper than 90.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARRY to the average of the S&P500 Index (28.06), we can say ARRY is valued rather cheaply.
A Price/Forward Earnings ratio of 12.29 indicates a correct valuation of ARRY.
Based on the Price/Forward Earnings ratio, ARRY is valued cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARRY to the average of the S&P500 Index (20.72), we can say ARRY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRY is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
95.24% 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 | 9.5 | ||
| EV/EBITDA | 8.98 |
4.3 Compensation for Growth
ARRY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.5%
EPS Next 3Y11.83%
5. Dividend
5.1 Amount
ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARRAY TECHNOLOGIES INC
NASDAQ:ARRY (5/3/2024, 3:43:25 PM)
After market: 13.5997 +0.14 (+1.04%)13.46
+0.4 (+3.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 12.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 13.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.58% | ||
| PM (TTM) | 5.18% | ||
| GM | 26.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)224.29%
EPS 3Y5.44%
EPS 5Y
EPS growth Q2Q
EPS Next Y-3.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y21.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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FCF growth 1Y
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