ARLO TECHNOLOGIES INC (ARLO)
US04206A1016 - Common Stock
We assign a fundamental rating of 4 out of 10 to ARLO. ARLO was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. ARLO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ARLO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ARLO had positive earnings in the past year.
In the past year ARLO had a positive cash flow from operations.
In the past 5 years ARLO always reported negative net income.
In multiple years ARLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
ARLO's Return On Assets of -7.99% is on the low side compared to the rest of the industry. ARLO is outperformed by 66.40% of its industry peers.
ARLO has a Return On Equity of -25.75%. This is in the lower half of the industry: ARLO underperforms 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.99% | ||
| ROE | -25.75% | ||
| ROIC | N/A |
ROA(3y)-14.88%
ROA(5y)-16.99%
ROE(3y)-45.19%
ROE(5y)-50.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 36.23%, ARLO is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
ARLO's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for ARLO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.23% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y30.05%
GM growth 5Y11.48%
2. Health
2.1 Basic Checks
ARLO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ARLO has been increased compared to 1 year ago.
The number of shares outstanding for ARLO has been increased compared to 5 years ago.
ARLO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ARLO has an Altman-Z score of 3.15. This indicates that ARLO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, ARLO is in line with its industry, outperforming 50.40% of the companies in the same industry.
There is no outstanding debt for ARLO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.15 |
ROIC/WACCN/A
WACC10.48%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ARLO should not have too much problems paying its short term obligations.
ARLO has a worse Current ratio (1.42) than 80.80% of its industry peers.
A Quick Ratio of 1.15 indicates that ARLO should not have too much problems paying its short term obligations.
The Quick ratio of ARLO (1.15) is worse than 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
ARLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 241.67%, which is quite impressive.
The Revenue has grown by 10.49% in the past year. This is quite good.
The Revenue has been growing slightly by 1.11% on average over the past years.
EPS 1Y (TTM)241.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
Revenue 1Y (TTM)10.49%
Revenue growth 3Y11.2%
Revenue growth 5Y1.11%
Sales Q2Q%5.9%
3.2 Future
ARLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.93% yearly.
ARLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y52.17%
EPS Next 2Y41.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.93%
Revenue Next 2Y3.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 27.54 indicates a quite expensive valuation of ARLO.
Compared to the rest of the industry, the Price/Earnings ratio of ARLO indicates a somewhat cheap valuation: ARLO is cheaper than 64.80% of the companies listed in the same industry.
ARLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.76, which indicates a rather expensive current valuation of ARLO.
Based on the Price/Forward Earnings ratio, ARLO is valued a bit cheaper than the industry average as 69.60% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, ARLO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 20.76 |
4.2 Price Multiples
72.80% of the companies in the same industry are more expensive than ARLO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ARLO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARLO's earnings are expected to grow with 41.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y41.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ARLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARLO TECHNOLOGIES INC
NYSE:ARLO (12/20/2024, 8:04:00 PM)
After market: 11.293 +0 (+0.03%)11.29
-0.16 (-1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners89.83%
Inst Owner Change1.38%
Ins Owners3.97%
Ins Owner Change12.25%
Market Cap1.13B
Analysts81.82
Price Target18.16 (60.85%)
Short Float %6.38%
Short Ratio7.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.7%
Min EPS beat(2)3.5%
Max EPS beat(2)9.91%
EPS beat(4)4
Avg EPS beat(4)10.8%
Min EPS beat(4)0.5%
Max EPS beat(4)29.31%
EPS beat(8)8
Avg EPS beat(8)39.69%
EPS beat(12)12
Avg EPS beat(12)69.89%
EPS beat(16)16
Avg EPS beat(16)68.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-0.05%
Revenue beat(8)4
Avg Revenue beat(8)1.38%
Revenue beat(12)7
Avg Revenue beat(12)2.27%
Revenue beat(16)11
Avg Revenue beat(16)2.96%
PT rev (1m)-2.2%
PT rev (3m)-2.2%
EPS NQ rev (1m)-4.56%
EPS NQ rev (3m)-8.41%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-9.62%
Revenue NQ rev (3m)-10.79%
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 20.76 | ||
| P/S | 2.16 | ||
| P/FCF | 22.41 | ||
| P/OCF | 21.55 | ||
| P/B | 11.69 | ||
| P/tB | 13.19 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.41
EY3.63%
EPS(NY)0.54
Fwd EY4.82%
FCF(TTM)0.5
FCFY4.46%
OCF(TTM)0.52
OCFY4.64%
SpS5.23
BVpS0.97
TBVpS0.86
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.99% | ||
| ROE | -25.75% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.23% | ||
| FCFM | 9.64% |
ROA(3y)-14.88%
ROA(5y)-16.99%
ROE(3y)-45.19%
ROE(5y)-50.71%
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 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y30.05%
GM growth 5Y11.48%
F-Score7
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 61.89% | ||
| Cap/Sales | 0.38% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.15 |
F-Score7
WACC10.48%
ROIC/WACCN/A
Cap/Depr(3y)47.06%
Cap/Depr(5y)48.33%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)241.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
EPS Next Y52.17%
EPS Next 2Y41.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.49%
Revenue growth 3Y11.2%
Revenue growth 5Y1.11%
Sales Q2Q%5.9%
Revenue Next Year4.93%
Revenue Next 2Y3.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y39.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year79.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y291%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y307.61%
OCF growth 3YN/A
OCF growth 5YN/A