ARLO TECHNOLOGIES INC (ARLO) Stock Fundamental Analysis
NYSE:ARLO - New York Stock Exchange, Inc. - US04206A1016 - Common Stock - Currency: USD
Overall ARLO gets a fundamental rating of 4 out of 10. We evaluated ARLO against 124 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 correct valuation and a medium growth rate.
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
The Return On Assets of ARLO (-7.99%) is worse than 66.67% of its industry peers.
ARLO has a worse Return On Equity (-25.75%) than 70.00% 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 62.50% of the companies in the same industry.
ARLO's Gross Margin has improved in the last couple of years.
ARLO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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 3.16. This indicates that ARLO is financially healthy and has little risk of bankruptcy at the moment.
ARLO has a Altman-Z score (3.16) which is in line with its industry peers.
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 | 3.16 |
ROIC/WACCN/A
WACC9.06%
2.3 Liquidity
ARLO has a Current Ratio of 1.42. This is a normal value and indicates that ARLO is financially healthy and should not expect problems in meeting its short term obligations.
ARLO has a worse Current ratio (1.42) than 81.67% of its industry peers.
ARLO has a Quick Ratio of 1.15. This is a normal value and indicates that ARLO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, ARLO is doing worse than 71.67% of the companies in the same industry.
| 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.
ARLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.49%.
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
The Earnings Per Share is expected to grow by 31.36% on average over the next years. This is a very strong growth
Based on estimates for the next years, ARLO will show a small growth in Revenue. The Revenue will grow by 6.06% on average per year.
EPS Next Y53.68%
EPS Next 2Y41.39%
EPS Next 3Y31.36%
EPS Next 5YN/A
Revenue Next Year4.08%
Revenue Next 2Y2.83%
Revenue Next 3Y6.06%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 27.98, 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 63.33% of the companies are valued more expensively.
ARLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.25, which indicates a rather expensive current valuation of ARLO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARLO indicates a somewhat cheap valuation: ARLO is cheaper than 65.83% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARLO to the average of the S&P500 Index (22.70), we can say ARLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.98 | ||
| Fwd PE | 21.25 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.76 | ||
| 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.
A more expensive valuation may be justified as ARLO's earnings are expected to grow with 31.36% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y41.39%
EPS Next 3Y31.36%
5. Dividend
5.1 Amount
No dividends for ARLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.47
+0.23 (+2.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.76%
Inst Owner Change-95.99%
Ins Owners4.1%
Ins Owner Change0.92%
Market Cap1.15B
Analysts81.82
Price Target18.16 (58.33%)
Short Float %5.32%
Short Ratio6.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)-1.32%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.98 | ||
| Fwd PE | 21.25 | ||
| P/S | 2.19 | ||
| P/FCF | 22.76 | ||
| P/OCF | 21.89 | ||
| P/B | 11.88 | ||
| P/tB | 13.4 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.41
EY3.57%
EPS(NY)0.54
Fwd EY4.71%
FCF(TTM)0.5
FCFY4.39%
OCF(TTM)0.52
OCFY4.57%
SpS5.23
BVpS0.97
TBVpS0.86
PEG (NY)0.52
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 | 3.16 |
F-Score7
WACC9.06%
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 Y53.68%
EPS Next 2Y41.39%
EPS Next 3Y31.36%
EPS Next 5YN/A
Revenue 1Y (TTM)10.49%
Revenue growth 3Y11.2%
Revenue growth 5Y1.11%
Sales Q2Q%5.9%
Revenue Next Year4.08%
Revenue Next 2Y2.83%
Revenue Next 3Y6.06%
Revenue Next 5YN/A
EBIT growth 1Y39.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year81.9%
EBIT Next 3Y42.86%
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