ARRY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. An interesting combination arises when we look at growth and value: ARRY is growing strongly while it also seems undervalued.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ARRY was profitable.
ARRY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ARRY reported negative net income in multiple years.
In multiple years ARRY reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -5.72%, ARRY is in the better half of the industry, outperforming 60.44% of the companies in the same industry.
The Return On Equity of ARRY (-22.77%) is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 9.59%, ARRY belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.

		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

ARRY's Operating Margin of 10.70% is amongst the best of the industry. ARRY outperforms 80.22% of its industry peers.
In the last couple of years the Operating Margin of ARRY has declined.
With a Gross Margin value of 26.82%, ARRY perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ARRY's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for ARRY has been increased compared to 1 year ago.
Compared to 5 years ago, ARRY has more shares outstanding
Compared to 1 year ago, ARRY has a worse debt to assets ratio.

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's Altman-Z score of 1.98 is in line compared to the rest of the industry. ARRY outperforms 58.24% of 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.
With a decent Debt to FCF ratio value of 7.72, ARRY is doing good in the industry, outperforming 69.23% of the companies in the same industry.
ARRY has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
ARRY's Debt to Equity ratio of 1.63 is on the low side compared to the rest of the industry. ARRY is outperformed by 64.84% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.63
Debt/FCF	7.72
Altman-Z	1.98

ROIC/WACC1.26

WACC7.6%

2.3 Liquidity

A Current Ratio of 1.89 indicates that ARRY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.89, ARRY perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that ARRY should not have too much problems paying its short term obligations.
ARRY has a Quick ratio of 1.50. This is in the better half of the industry: ARRY outperforms 63.74% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.89
Quick Ratio	1.5

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WACC

Debt/Equity

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Altman-Z score

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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!
Measured over the past years, ARRY shows a small growth in Revenue. The Revenue has been growing by 7.17% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

ARRY is valuated correctly with a Price/Earnings ratio of 13.27.
Compared to the rest of the industry, the Price/Earnings ratio of ARRY indicates a rather cheap valuation: ARRY is cheaper than 93.41% of the companies listed in the same industry.
ARRY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
ARRY is valuated correctly with a Price/Forward Earnings ratio of 12.68.
Based on the Price/Forward Earnings ratio, ARRY is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
ARRY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	13.27
Fwd PE	12.68

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARRY is valued cheaper than 94.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARRY is valued cheaply inside the industry as 91.21% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	19.3
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.