ARLO TECHNOLOGIES INC (ARLO)
US04206A1016 - Common Stock
We assign a fundamental rating of 4 out of 10 to ARLO. ARLO was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of ARLO is average, but there are quite some concerns on its profitability. 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.
ARLO had a positive operating cash flow in the past year.
ARLO had negative earnings in each of the past 5 years.
In multiple years ARLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
ARLO's Return On Assets of -7.31% is on the low side compared to the rest of the industry. ARLO is outperformed by 63.41% of its industry peers.
ARLO has a Return On Equity of -21.77%. This is in the lower half of the industry: ARLO underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.31% | ||
| ROE | -21.77% | ||
| 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
ARLO has a better Gross Margin (35.74%) than 60.16% of its industry peers.
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 | 35.74% |
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.
Compared to 1 year ago, ARLO has more shares outstanding
Compared to 5 years ago, ARLO has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 3.63 indicates that ARLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, ARLO is in the better half of the industry, outperforming 61.79% of the companies in the same industry.
ARLO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.63 |
ROIC/WACCN/A
WACC9.92%
2.3 Liquidity
A Current Ratio of 1.48 indicates that ARLO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, ARLO is doing worse than 78.05% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that ARLO should not have too much problems paying its short term obligations.
The Quick ratio of ARLO (1.23) is worse than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.23 |
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.
ARLO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.16%.
Measured over the past years, ARLO shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
EPS 1Y (TTM)241.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
Revenue 1Y (TTM)0.16%
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 40.43% yearly.
ARLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.21% yearly.
EPS Next Y53.45%
EPS Next 2Y40.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.35%
Revenue Next 2Y7.21%
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
The Price/Earnings ratio is 29.61, which means the current valuation is very expensive for ARLO.
Based on the Price/Earnings ratio, ARLO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARLO to the average of the S&P500 Index (29.38), we can say ARLO is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.80, ARLO is valued on the expensive side.
69.92% of the companies in the same industry are more expensive than ARLO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARLO to the average of the S&P500 Index (23.98), we can say ARLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 22.8 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 ARLO's earnings are expected to grow with 40.43% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y40.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ARLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARLO TECHNOLOGIES INC
NYSE:ARLO (11/11/2024, 8:21:11 PM)
After market: 12.14 0 (0%)12.14
+0.22 (+1.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 22.8 | ||
| 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)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.31% | ||
| ROE | -21.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 35.74% | ||
| 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 Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.23 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)241.67%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y53.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.16%
Revenue growth 3Y11.2%
Revenue growth 5Y
Sales 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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y