11.061 USD
+0.53 (+5.04%)
Taking everything into account, ARRY scores 5 out of 10 in our fundamental rating. ARRY was compared to 91 industry peers in the Electrical Equipment industry. While ARRY is still in line with the averages on profitability rating, there are concerns on its financial health. ARRY is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- In the past year ARRY was profitable.
- ARRY had a positive operating cash flow in the past year.
- In multiple years ARRY reported negative net income over the last 5 years.
- The reported operating cash flow has been mixed in the past 5 years: ARRY reported negative operating cash flow in multiple years.
1.2 Ratios
- ARRY's Return On Assets of -5.72% is fine compared to the rest of the industry. ARRY outperforms 60.44% of its industry peers.
- ARRY has a Return On Equity (-22.77%) which is in line with its industry peers.
- The Return On Invested Capital of ARRY (9.59%) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.72% | ||
| ROE | -22.77% | ||
| ROIC | 9.59% |
ROA(3y)-6.1%
ROA(5y)-3.02%
ROE(3y)-32.93%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Operating Margin of ARRY (10.70%) is better than 80.22% of its industry peers.
- ARRY's Operating Margin has declined in the last couple of years.
- ARRY has a Gross Margin of 26.82%. This is comparable to the rest of the industry: ARRY outperforms 57.14% of its industry peers.
- In the last couple of years the Gross Margin of ARRY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.7% | ||
| PM (TTM) | N/A | ||
| GM | 26.82% |
OM growth 3YN/A
OM growth 5Y-3.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y49.56%
GM growth 5Y6.91%
2. Health
2.1 Basic Checks
- ARRY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ARRY has more shares outstanding than it did 1 year ago.
- ARRY has more shares outstanding than it did 5 years ago.
- ARRY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.98 indicates that ARRY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARRY has a Altman-Z score (1.98) which is in line with its industry peers.
- The Debt to FCF ratio of ARRY is 7.72, which is on the high side as it means it would take ARRY, 7.72 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ARRY (7.72) is better than 69.23% of its industry peers.
- ARRY has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
- ARRY has a worse Debt to Equity ratio (1.63) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.72 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.27
WACC7.55%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that ARRY should not have too much problems paying its short term obligations.
- The Current ratio of ARRY (1.89) is comparable to the rest of the industry.
- ARRY has a Quick Ratio of 1.50. This is a normal value and indicates that ARRY is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of ARRY (1.50) is better than 63.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 31.25% over the past year.
- Measured over the past years, ARRY shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.57% on average per year.
- The Revenue has grown by 35.75% in the past year. This is a very strong growth!
- The Revenue has been growing slightly by 7.17% on average over the past years.
EPS 1Y (TTM)31.25%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%76.47%
Revenue 1Y (TTM)35.75%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%70.04%
3.2 Future
- Based on estimates for the next years, ARRY will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.02% on average per year.
- ARRY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.21% yearly.
EPS Next Y15.93%
EPS Next 2Y22.11%
EPS Next 3Y20.17%
EPS Next 5Y13.02%
Revenue Next Year39.46%
Revenue Next 2Y26.29%
Revenue Next 3Y19.11%
Revenue Next 5Y12.21%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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
- ARRY is valuated correctly with a Price/Earnings ratio of 13.17.
- Based on the Price/Earnings ratio, ARRY is valued cheaply inside the industry as 93.41% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. ARRY is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 12.57, ARRY is valued correctly.
- Based on the Price/Forward Earnings ratio, ARRY is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ARRY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARRY is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARRY indicates a rather cheap valuation: ARRY is cheaper than 91.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
- ARRY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ARRY's earnings are expected to grow with 20.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y22.11%
EPS Next 3Y20.17%
5. Dividend
5.1 Amount
- ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ARRAY TECHNOLOGIES INC / ARRY FAQ
What is the ChartMill fundamental rating of ARRAY TECHNOLOGIES INC (ARRY) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ARRY.
What is the valuation status of ARRAY TECHNOLOGIES INC (ARRY) stock?
ChartMill assigns a valuation rating of 8 / 10 to ARRAY TECHNOLOGIES INC (ARRY). This can be considered as Undervalued.
Can you provide the profitability details for ARRAY TECHNOLOGIES INC?
ARRAY TECHNOLOGIES INC (ARRY) has a profitability rating of 4 / 10.
Can you provide the financial health for ARRY stock?
The financial health rating of ARRAY TECHNOLOGIES INC (ARRY) is 3 / 10.
Is the dividend of ARRAY TECHNOLOGIES INC sustainable?
The dividend rating of ARRAY TECHNOLOGIES INC (ARRY) is 0 / 10 and the dividend payout ratio is 0%.