9.22 USD
-0.18 (-1.91%)
9.05 USD
-0.17 (-1.84%)
We assign a fundamental rating of 5 out of 10 to ARRY. ARRY was compared to 91 industry peers in the Electrical Equipment industry. There are concerns on the financial health of ARRY while its profitability can be described as average. An interesting combination arises when we look at growth and value: ARRY is growing strongly while it also seems undervalued.
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.
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
ARRY has a better Return On Assets (-5.72%) than 60.44% of its industry peers.
ARRY's Return On Equity of -22.77% is in line compared to the rest of the industry. ARRY outperforms 56.04% of its industry peers.
ARRY has a Return On Invested Capital of 9.59%. This is amongst the best in the industry. ARRY outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.72% | ||
| ROE | -22.77% | ||
| ROIC | 9.59% |
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 10.70%. This is amongst the best in the industry. ARRY outperforms 80.22% of its industry peers.
In the last couple of years the Operating Margin of ARRY has declined.
Looking at the Gross Margin, with a value of 26.82%, ARRY is in line with its industry, outperforming 57.14% of the companies in the same industry.
ARRY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.7% | ||
| PM (TTM) | N/A | ||
| GM | 26.82% |
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.
Compared to 5 years ago, ARRY has more shares outstanding
Compared to 1 year ago, ARRY has a worse debt to assets ratio.
2.2 Solvency
ARRY has an Altman-Z score of 1.88. This is not the best score and indicates that ARRY is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.88, ARRY perfoms like the industry average, outperforming 58.24% of the companies in the same industry.
ARRY has a debt to FCF ratio of 7.72. This is a slightly negative value and a sign of low solvency as ARRY would need 7.72 years to pay back of all of its debts.
ARRY's Debt to FCF ratio of 7.72 is fine compared to the rest of the industry. ARRY outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that ARRY has dependencies on debt financing.
With a Debt to Equity ratio value of 1.63, ARRY is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.72 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.3
WACC7.38%
2.3 Liquidity
ARRY has a Current Ratio of 1.89. This is a normal value and indicates that ARRY is financially healthy and should not expect problems in meeting its short term obligations.
ARRY has a Current ratio of 1.89. This is comparable to the rest of the industry: ARRY outperforms 53.85% of its industry peers.
A Quick Ratio of 1.50 indicates that ARRY should not have too much problems paying its short term obligations.
The Quick ratio of ARRY (1.50) is better than 63.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
ARRY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.25%, which is quite impressive.
ARRY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.57% yearly.
ARRY shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.75%.
Measured over the past years, ARRY shows a small growth in Revenue. The Revenue has been growing by 7.17% on average per year.
EPS 1Y (TTM)31.25%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%76.47%
Revenue 1Y (TTM)35.75%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%70.04%
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 11.61% on average per year.
The Revenue is expected to grow by 11.95% on average over the next years. This is quite good.
EPS Next Y16.11%
EPS Next 2Y22.06%
EPS Next 3Y20.1%
EPS Next 5Y11.61%
Revenue Next Year39.03%
Revenue Next 2Y25.39%
Revenue Next 3Y18.93%
Revenue Next 5Y11.95%
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.
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
A Price/Earnings ratio of 10.98 indicates a reasonable valuation of ARRY.
92.31% of the companies in the same industry are more expensive than ARRY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ARRY to the average of the S&P500 Index (26.51), we can say ARRY is valued rather cheaply.
A Price/Forward Earnings ratio of 10.49 indicates a reasonable valuation of ARRY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARRY indicates a rather cheap valuation: ARRY is cheaper than 93.41% of the companies listed in the same industry.
ARRY is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
94.51% of the companies in the same industry are more expensive than ARRY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ARRY is valued cheaply inside the industry as 91.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.96 | ||
| EV/EBITDA | 9.98 |
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.
A more expensive valuation may be justified as ARRY's earnings are expected to grow with 20.10% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y22.06%
EPS Next 3Y20.1%
5. Dividend
5.1 Amount
ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
9.22
-0.18 (-1.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners134.89%
Inst Owner Change12.01%
Ins Owners0.5%
Ins Owner Change0.2%
Market Cap1.41B
Revenue(TTM)1.33B
Net Income(TTM)-92.11M
Analysts76.36
Price Target11.13 (20.72%)
Short Float %25.7%
Short Ratio6.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)35.33%
Min EPS beat(2)25.01%
Max EPS beat(2)45.64%
EPS beat(4)3
Avg EPS beat(4)25.95%
Min EPS beat(4)-9.27%
Max EPS beat(4)45.64%
EPS beat(8)7
Avg EPS beat(8)70.72%
EPS beat(12)11
Avg EPS beat(12)118.82%
EPS beat(16)14
Avg EPS beat(16)104.93%
Revenue beat(2)2
Avg Revenue beat(2)23.14%
Min Revenue beat(2)22.27%
Max Revenue beat(2)24.01%
Revenue beat(4)4
Avg Revenue beat(4)14.72%
Min Revenue beat(4)0.51%
Max Revenue beat(4)24.01%
Revenue beat(8)7
Avg Revenue beat(8)9.8%
Revenue beat(12)10
Avg Revenue beat(12)8.59%
Revenue beat(16)14
Avg Revenue beat(16)10.07%
PT rev (1m)0.35%
PT rev (3m)20.35%
EPS NQ rev (1m)-88.68%
EPS NQ rev (3m)-99.87%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-9.7%
Revenue NY rev (1m)4.87%
Revenue NY rev (3m)5.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.49 | ||
| P/S | 1.06 | ||
| P/FCF | 15.96 | ||
| P/OCF | 12.17 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.98 |
EPS(TTM)0.84
EY9.11%
EPS(NY)0.88
Fwd EY9.53%
FCF(TTM)0.58
FCFY6.27%
OCF(TTM)0.76
OCFY8.22%
SpS8.73
BVpS2.65
TBVpS-0.56
PEG (NY)0.68
PEG (5Y)N/A
Graham Number7.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.72% | ||
| ROE | -22.77% | ||
| ROCE | 12.38% | ||
| ROIC | 9.59% | ||
| ROICexc | 11.87% | ||
| ROICexgc | 25.04% | ||
| OM | 10.7% | ||
| PM (TTM) | N/A | ||
| GM | 26.82% | ||
| FCFM | 6.62% |
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-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.72 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 61.76% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 61.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.88 |
F-Score5
WACC7.38%
ROIC/WACC1.3
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)31.25%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%76.47%
EPS Next Y16.11%
EPS Next 2Y22.06%
EPS Next 3Y20.1%
EPS Next 5Y11.61%
Revenue 1Y (TTM)35.75%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%70.04%
Revenue Next Year39.03%
Revenue Next 2Y25.39%
Revenue Next 3Y18.93%
Revenue Next 5Y11.95%
EBIT growth 1Y32.64%
EBIT growth 3YN/A
EBIT growth 5Y3.88%
EBIT Next Year483.29%
EBIT Next 3Y97.21%
EBIT Next 5Y49.43%
FCF growth 1Y-59.88%
FCF growth 3YN/A
FCF growth 5Y-18.84%
OCF growth 1Y-50.86%
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.
What is the valuation status of ARRAY TECHNOLOGIES INC (ARRY) stock?
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.
Can you provide the financial health for ARRY stock?
The financial health rating of ARRAY TECHNOLOGIES INC (ARRY) is 3 / 10.
Is the dividend of ARRAY TECHNOLOGIES INC sustainable?
The dividend rating of ARRAY TECHNOLOGIES INC (ARRY) is 0 / 10 and the dividend payout ratio is 0%.