ARLO TECHNOLOGIES INC (ARLO)
US04206A1016 - Common Stock
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. 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
In the past year ARLO was profitable.
In the past year ARLO had a positive cash flow from operations.
In the past 5 years ARLO always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: ARLO reported negative operating cash flow in multiple 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 64.23% of its industry peers.
ARLO's Return On Equity of -25.75% is on the low side compared to the rest of the industry. ARLO is outperformed by 71.54% 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
ARLO's Gross Margin of 36.23% is fine compared to the rest of the industry. ARLO outperforms 61.79% of its industry peers.
In the last couple of years the Gross Margin of ARLO has grown nicely.
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.
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
ARLO has an Altman-Z score of 3.23. This indicates that ARLO is financially healthy and has little risk of bankruptcy at the moment.
ARLO has a Altman-Z score of 3.23. This is comparable to the rest of the industry: ARLO outperforms 53.66% of 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 | 3.23 |
ROIC/WACCN/A
WACC10.05%
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 81.30% of its industry peers.
A Quick Ratio of 1.15 indicates that ARLO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, ARLO is doing worse than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 241.67% over the past year.
Looking at the last year, ARLO shows a quite strong growth in Revenue. The Revenue has grown by 10.49% in the last year.
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)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 40.43% on average over the next years. This is a very strong growth
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
ARLO is valuated quite expensively with a Price/Earnings ratio of 29.00.
Compared to the rest of the industry, the Price/Earnings ratio of ARLO indicates a somewhat cheap valuation: ARLO is cheaper than 64.23% 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 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.33 indicates a rather expensive valuation of ARLO.
67.48% 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 (23.82), we can say ARLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 22.33 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than the industry average as 69.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.6 | ||
| 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 40.43% in the coming years.
PEG (NY)0.54
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 (11/21/2024, 8:12:54 PM)
After market: 11.89 0 (0%)11.89
+0.17 (+1.45%)
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 Cap1.19B
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 | ||
| Fwd PE | 22.33 | ||
| 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)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.99% | ||
| ROE | -25.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.23% | ||
| 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 Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.15 | ||
| 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)10.49%
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