ARRAY TECHNOLOGIES INC (ARRY) Stock Fundamental Analysis
USA - NASDAQ:ARRY - US04271T1007 - Common Stock
8.18 USD
+0.58 (+7.63%)
8.25 USD
+0.07 (+0.86%)
We assign a fundamental rating of 4 out of 10 to ARRY. 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 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.
In the past year ARRY had a positive cash flow from operations.
In multiple years ARRY reported negative net income over the last 5 years.
In multiple years ARRY reported negative operating cash flow during the last 5 years.
1.2 Ratios
ARRY has a Return On Assets of -5.72%. This is in the better half of the industry: ARRY outperforms 60.44% of its industry peers.
ARRY has a Return On Equity (-22.77%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.59%, ARRY belongs to the top of the industry, outperforming 83.52% 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 fine compared to the rest of the industry. ARRY outperforms 79.12% 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.
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%
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
The debt/assets ratio for ARRY is higher compared to a year ago.
2.2 Solvency
ARRY has an Altman-Z score of 1.80. This is a bad value and indicates that ARRY is not financially healthy and even has some risk of bankruptcy.
ARRY has a Altman-Z score (1.80) which is comparable to the rest of the industry.
ARRY has a debt to FCF ratio of 7.72. This is a slightly negative value and a sign of low solvency as ARRY would need 7.72 years to pay back of all of its debts.
ARRY's Debt to FCF ratio of 7.72 is fine compared to the rest of the industry. ARRY outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that ARRY has dependencies on debt financing.
With a Debt to Equity ratio value of 1.63, ARRY is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.72 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.32
WACC7.24%
2.3 Liquidity
ARRY has a Current Ratio of 1.89. This is a normal value and indicates that ARRY is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.89, ARRY perfoms like the industry average, outperforming 56.04% 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 64.84% 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.
ARRY shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.75%.
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 small growth in Earnings Per Share. The EPS will grow by 7.71% on average per year.
ARRY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.47% yearly.
EPS Next Y16.23%
EPS Next 2Y24.43%
EPS Next 3Y22%
EPS Next 5Y7.71%
Revenue Next Year32.57%
Revenue Next 2Y23.31%
Revenue Next 3Y17.96%
Revenue Next 5Y10.47%
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
Based on the Price/Earnings ratio of 9.74, the valuation of ARRY can be described as reasonable.
93.41% of the companies in the same industry are more expensive than ARRY, based on the Price/Earnings ratio.
ARRY is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.95 indicates a reasonable valuation of ARRY.
96.70% of the companies in the same industry are more expensive than ARRY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ARRY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRY is valued cheaper than 93.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARRY is valued cheaper than 93.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 9.13 |
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.
ARRY's earnings are expected to grow with 22.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y24.43%
EPS Next 3Y22%
5. Dividend
5.1 Amount
No dividends for ARRY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.18
+0.58 (+7.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners122.44%
Inst Owner Change11.83%
Ins Owners0.51%
Ins Owner Change5.84%
Market Cap1.25B
Revenue(TTM)1.33B
Net Income(TTM)-92.11M
Analysts75.76
Price Target10.18 (24.45%)
Short Float %25.4%
Short Ratio5.03
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)35.33%
Min EPS beat(2)25.01%
Max EPS beat(2)45.64%
EPS beat(4)3
Avg EPS beat(4)25.95%
Min EPS beat(4)-9.27%
Max EPS beat(4)45.64%
EPS beat(8)7
Avg EPS beat(8)70.72%
EPS beat(12)11
Avg EPS beat(12)118.82%
EPS beat(16)14
Avg EPS beat(16)104.93%
Revenue beat(2)2
Avg Revenue beat(2)23.14%
Min Revenue beat(2)22.27%
Max Revenue beat(2)24.01%
Revenue beat(4)4
Avg Revenue beat(4)14.72%
Min Revenue beat(4)0.51%
Max Revenue beat(4)24.01%
Revenue beat(8)7
Avg Revenue beat(8)9.8%
Revenue beat(12)10
Avg Revenue beat(12)8.59%
Revenue beat(16)14
Avg Revenue beat(16)10.07%
PT rev (1m)11.77%
PT rev (3m)13.1%
EPS NQ rev (1m)-45.72%
EPS NQ rev (3m)-57.23%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)5.45%
Revenue NQ rev (1m)-9.35%
Revenue NQ rev (3m)-8.92%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.94 | ||
| P/FCF | 14.15 | ||
| P/OCF | 10.79 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.13 |
EPS(TTM)0.84
EY10.27%
EPS(NY)0.91
Fwd EY11.17%
FCF(TTM)0.58
FCFY7.06%
OCF(TTM)0.76
OCFY9.26%
SpS8.73
BVpS2.65
TBVpS-0.56
PEG (NY)0.6
PEG (5Y)N/A
Graham Number7.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.72% | ||
| ROE | -22.77% | ||
| ROCE | 12.38% | ||
| ROIC | 9.59% | ||
| ROICexc | 11.87% | ||
| ROICexgc | 25.04% | ||
| OM | 10.7% | ||
| PM (TTM) | N/A | ||
| GM | 26.82% | ||
| FCFM | 6.62% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.72 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 61.76% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 61.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.8 |
F-Score5
WACC7.24%
ROIC/WACC1.32
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)31.25%
EPS 3Y65.57%
EPS 5YN/A
EPS Q2Q%76.47%
EPS Next Y16.23%
EPS Next 2Y24.43%
EPS Next 3Y22%
EPS Next 5Y7.71%
Revenue 1Y (TTM)35.75%
Revenue growth 3Y2.38%
Revenue growth 5Y7.17%
Sales Q2Q%70.04%
Revenue Next Year32.57%
Revenue Next 2Y23.31%
Revenue Next 3Y17.96%
Revenue Next 5Y10.47%
EBIT growth 1Y32.64%
EBIT growth 3YN/A
EBIT growth 5Y3.88%
EBIT Next Year491.81%
EBIT Next 3Y97.17%
EBIT Next 5Y49.06%
FCF growth 1Y-59.88%
FCF growth 3YN/A
FCF growth 5Y-18.84%
OCF growth 1Y-50.86%
OCF growth 3YN/A
OCF growth 5Y-16.79%
ARRAY TECHNOLOGIES INC / ARRY FAQ
What is the ChartMill fundamental rating of ARRAY TECHNOLOGIES INC (ARRY) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARRY.
Can you provide the valuation status for ARRAY TECHNOLOGIES INC?
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.
What are the PE and PB ratios of ARRAY TECHNOLOGIES INC (ARRY) stock?
The Price/Earnings (PE) ratio for ARRAY TECHNOLOGIES INC (ARRY) is 9.74 and the Price/Book (PB) ratio is 3.09.
How financially healthy is ARRAY TECHNOLOGIES INC?
The financial health rating of ARRAY TECHNOLOGIES INC (ARRY) is 3 / 10.