ARRAY TECHNOLOGIES INC (ARRY) Stock Fundamental Analysis
USA - NASDAQ:ARRY - US04271T1007 - Common Stock
7.67 USD
-0.18 (-2.29%)
7.69 USD
+0.02 (+0.26%)
Taking everything into account, ARRY scores 5 out of 10 in our fundamental rating. ARRY was compared to 92 industry peers in the Electrical Equipment industry. ARRY has an average financial health and profitability rating. ARRY may be a bit undervalued, certainly considering the very reasonable score on growth
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
The Return On Assets of ARRY (-17.24%) is comparable to the rest of the industry.
The Return On Equity of ARRY (-72.79%) is comparable to the rest of the industry.
The Return On Invested Capital of ARRY (9.13%) is better than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.24% | ||
| ROE | -72.79% | ||
| ROIC | 9.13% |
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 has a better Operating Margin (10.80%) than 81.52% of its industry peers.
ARRY's Operating Margin has declined in the last couple of years.
The Gross Margin of ARRY (28.19%) is comparable to the rest of the industry.
ARRY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 28.19% |
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.
Compared to 1 year ago, ARRY has more shares outstanding
ARRY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARRY has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that ARRY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ARRY (1.79) is comparable to the rest of the industry.
ARRY has a debt to FCF ratio of 6.29. This is a slightly negative value and a sign of low solvency as ARRY would need 6.29 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.29, ARRY is doing good in the industry, outperforming 71.74% of the companies in the same industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that ARRY has dependencies on debt financing.
The Debt to Equity ratio of ARRY (1.80) is worse than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.28
WACC7.12%
2.3 Liquidity
A Current Ratio of 2.22 indicates that ARRY has no problem at all paying its short term obligations.
ARRY has a better Current ratio (2.22) than 63.04% of its industry peers.
A Quick Ratio of 1.84 indicates that ARRY should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.84, ARRY is doing good in the industry, outperforming 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.19% 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.
Looking at the last year, ARRY shows a small growth in Revenue. The Revenue has grown by 6.36% in the last year.
The Revenue has been growing slightly by 7.17% on average over the past years.
EPS 1Y (TTM)5.19%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%41.63%
3.2 Future
The Earnings Per Share is expected to grow by 7.62% on average over the next years.
The Revenue is expected to grow by 10.52% on average over the next years. This is quite good.
EPS Next Y14.9%
EPS Next 2Y23.25%
EPS Next 3Y18.23%
EPS Next 5Y7.62%
Revenue Next Year32.36%
Revenue Next 2Y22.88%
Revenue Next 3Y17.67%
Revenue Next 5Y10.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 10.80, which indicates a very decent valuation of ARRY.
Compared to the rest of the industry, the Price/Earnings ratio of ARRY indicates a rather cheap valuation: ARRY is cheaper than 92.39% 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 27.30.
ARRY is valuated reasonably with a Price/Forward Earnings ratio of 8.56.
Based on the Price/Forward Earnings ratio, ARRY is valued cheaply inside the industry as 96.74% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, ARRY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 8.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRY is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
ARRY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARRY is cheaper than 94.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 8.65 |
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 18.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y23.25%
EPS Next 3Y18.23%
5. Dividend
5.1 Amount
ARRY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.67
-0.18 (-2.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.71%
Inst Owner Change8.87%
Ins Owners0.5%
Ins Owner Change7.7%
Market Cap1.17B
Analysts76.88
Price Target9.24 (20.47%)
Short Float %25.51%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.72%
Min EPS beat(2)25.01%
Max EPS beat(2)42.44%
EPS beat(4)3
Avg EPS beat(4)19.81%
Min EPS beat(4)-9.27%
Max EPS beat(4)42.44%
EPS beat(8)7
Avg EPS beat(8)72.94%
EPS beat(12)11
Avg EPS beat(12)121.34%
EPS beat(16)13
Avg EPS beat(16)100.29%
Revenue beat(2)2
Avg Revenue beat(2)17.19%
Min Revenue beat(2)12.1%
Max Revenue beat(2)22.27%
Revenue beat(4)3
Avg Revenue beat(4)8.1%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)22.27%
Revenue beat(8)6
Avg Revenue beat(8)5.76%
Revenue beat(12)10
Avg Revenue beat(12)8.8%
Revenue beat(16)13
Avg Revenue beat(16)8%
PT rev (1m)2.67%
PT rev (3m)8.07%
EPS NQ rev (1m)6.56%
EPS NQ rev (3m)17.99%
EPS NY rev (1m)4.24%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)6.86%
Revenue NQ rev (3m)16.54%
Revenue NY rev (1m)6.59%
Revenue NY rev (3m)8.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 8.56 | ||
| P/S | 1 | ||
| P/FCF | 10.62 | ||
| P/OCF | 8.79 | ||
| P/B | 3.21 | ||
| P/tB | 63.87 | ||
| EV/EBITDA | 8.65 |
EPS(TTM)0.71
EY9.26%
EPS(NY)0.9
Fwd EY11.68%
FCF(TTM)0.72
FCFY9.41%
OCF(TTM)0.87
OCFY11.38%
SpS7.67
BVpS2.39
TBVpS0.12
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.24% | ||
| ROE | -72.79% | ||
| ROCE | 11.78% | ||
| ROIC | 9.13% | ||
| ROICexc | 14.07% | ||
| ROICexgc | 28.04% | ||
| OM | 10.8% | ||
| PM (TTM) | N/A | ||
| GM | 28.19% | ||
| FCFM | 9.41% |
ROA(3y)-6.1%
ROA(5y)-3.02%
ROE(3y)-32.93%
ROE(5y)N/A
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 5Y-46.48%
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%
F-Score3
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.29 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 50.62% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 3.42 | ||
| Cash Conversion | 77.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 1.79 |
F-Score3
WACC7.12%
ROIC/WACC1.28
Cap/Depr(3y)25.56%
Cap/Depr(5y)18.91%
Cap/Sales(3y)1.25%
Cap/Sales(5y)0.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.19%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y14.9%
EPS Next 2Y23.25%
EPS Next 3Y18.23%
EPS Next 5Y7.62%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%41.63%
Revenue Next Year32.36%
Revenue Next 2Y22.88%
Revenue Next 3Y17.67%
Revenue Next 5Y10.52%
EBIT growth 1Y6.85%
EBIT growth 3YN/A
EBIT growth 5Y3.88%
EBIT Next Year480.73%
EBIT Next 3Y92.79%
EBIT Next 5Y48.66%
FCF growth 1Y-56.35%
FCF growth 3YN/A
FCF growth 5Y-18.84%
OCF growth 1Y-50.39%
OCF growth 3YN/A
OCF growth 5Y-16.79%