ARLO TECHNOLOGIES INC (ARLO) Stock Fundamental Analysis
USA - NYSE:ARLO - US04206A1016 - Common Stock
17.75 USD
-1.22 (-6.43%)
17.49 USD
-0.26 (-1.46%)
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 is not valued too expensively and it also shows a decent 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.
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 -2.19% is in line compared to the rest of the industry. ARLO outperforms 44.35% of its industry peers.
ARLO's Return On Equity of -5.93% is in line compared to the rest of the industry. ARLO outperforms 43.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.19% | ||
| ROE | -5.93% | ||
| ROIC | N/A |
ROA(3y)-12.91%
ROA(5y)-15.86%
ROE(3y)-38.7%
ROE(5y)-48.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Gross Margin value of 40.19%, ARLO is doing good in the industry, outperforming 68.55% 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 | 40.19% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.92%
GM growth 5Y30.48%
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
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 5.61. 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 5.61, ARLO is in the better half of the industry, outperforming 73.39% 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 | 5.61 |
ROIC/WACCN/A
WACC9.21%
2.3 Liquidity
ARLO has a Current Ratio of 1.47. This is a normal value and indicates that ARLO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.47, ARLO is not doing good in the industry: 75.81% of the companies in the same industry are doing better.
ARLO has a Quick Ratio of 1.30. 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 Quick ratio of 1.30. This is in the lower half of the industry: ARLO underperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
ARLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.90%, which is quite impressive.
The Revenue has decreased by -1.75% in the past year.
The Revenue has been growing slightly by 6.67% on average over the past years.
EPS 1Y (TTM)35.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%1.54%
3.2 Future
ARLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.63% yearly.
The Revenue is expected to grow by 5.22% on average over the next years.
EPS Next Y59.5%
EPS Next 2Y43.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.64%
Revenue Next 2Y5.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ARLO is valuated quite expensively with a Price/Earnings ratio of 33.49.
Compared to the rest of the industry, the Price/Earnings ratio of ARLO indicates a somewhat cheap valuation: ARLO is cheaper than 62.10% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARLO to the average of the S&P500 Index (26.03), we can say ARLO is valued slightly more expensively.
A Price/Forward Earnings ratio of 21.51 indicates a rather expensive valuation of ARLO.
67.74% of the companies in the same industry are more expensive than ARLO, based on the Price/Forward Earnings ratio.
ARLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.49 | ||
| Fwd PE | 21.51 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARLO is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.52 | ||
| 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.
ARLO's earnings are expected to grow with 43.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y43.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ARLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.75
-1.22 (-6.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change-0.96%
Ins Owners4.2%
Ins Owner Change-37.75%
Market Cap1.85B
Revenue(TTM)507.71M
Net Income(TTM)-7011000
Analysts81.82
Price Target23.66 (33.3%)
Short Float %9.48%
Short Ratio7.96
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)17.38%
Min EPS beat(2)9.08%
Max EPS beat(2)25.69%
EPS beat(4)3
Avg EPS beat(4)8%
Min EPS beat(4)-6.27%
Max EPS beat(4)25.69%
EPS beat(8)7
Avg EPS beat(8)13.17%
EPS beat(12)11
Avg EPS beat(12)33.95%
EPS beat(16)15
Avg EPS beat(16)56.9%
Revenue beat(2)1
Avg Revenue beat(2)0.69%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)2.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)2.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.71%
Revenue beat(12)5
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)1.71%
PT rev (1m)0%
PT rev (3m)18.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.49 | ||
| Fwd PE | 21.51 | ||
| P/S | 3.65 | ||
| P/FCF | 32.52 | ||
| P/OCF | 28.59 | ||
| P/B | 15.66 | ||
| P/tB | 17.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.53
EY2.99%
EPS(NY)0.83
Fwd EY4.65%
FCF(TTM)0.55
FCFY3.08%
OCF(TTM)0.62
OCFY3.5%
SpS4.86
BVpS1.13
TBVpS1.03
PEG (NY)0.56
PEG (5Y)N/A
Graham Number3.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.19% | ||
| ROE | -5.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.19% | ||
| FCFM | 11.22% |
ROA(3y)-12.91%
ROA(5y)-15.86%
ROE(3y)-38.7%
ROE(5y)-48.3%
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 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.92%
GM growth 5Y30.48%
F-Score5
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 243.99% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 5.61 |
F-Score5
WACC9.21%
ROIC/WACCN/A
Cap/Depr(3y)62.41%
Cap/Depr(5y)52.66%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70%
EPS Next Y59.5%
EPS Next 2Y43.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y5.5%
Revenue growth 5Y6.67%
Sales Q2Q%1.54%
Revenue Next Year2.64%
Revenue Next 2Y5.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year247.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1920.28%
FCF growth 3YN/A
FCF growth 5Y80.89%
OCF growth 1Y923.49%
OCF growth 3YN/A
OCF growth 5Y41.11%
ARLO TECHNOLOGIES INC / ARLO FAQ
What is the ChartMill fundamental rating of ARLO TECHNOLOGIES INC (ARLO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARLO.
What is the valuation status for ARLO stock?
ChartMill assigns a valuation rating of 4 / 10 to ARLO TECHNOLOGIES INC (ARLO). This can be considered as Fairly Valued.
How profitable is ARLO TECHNOLOGIES INC (ARLO) stock?
ARLO TECHNOLOGIES INC (ARLO) has a profitability rating of 2 / 10.
What are the PE and PB ratios of ARLO TECHNOLOGIES INC (ARLO) stock?
The Price/Earnings (PE) ratio for ARLO TECHNOLOGIES INC (ARLO) is 33.49 and the Price/Book (PB) ratio is 15.66.
How financially healthy is ARLO TECHNOLOGIES INC?
The financial health rating of ARLO TECHNOLOGIES INC (ARLO) is 6 / 10.