The Arena Group Holdings, Inc.
The Arena Group Holdings, Inc. Fundamental Analysis
The Arena Group Holdings, Inc. (AREN) shows moderate financial fundamentals with a PE ratio of 0.74, profit margin of 92.61%, and ROE of -3.15%. The company generates $0.1B in annual revenue with weak year-over-year growth of -12.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -73.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AREN's fundamental strength across five key dimensions:
Efficiency Score
WeakAREN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAREN trades at attractive valuation levels.
Growth Score
WeakAREN faces weak or negative growth trends.
Financial Health Score
ExcellentAREN maintains a strong and stable balance sheet.
Profitability Score
ModerateAREN maintains healthy but balanced margins.
Key Financial Metrics
Is AREN Expensive or Cheap?
P/E Ratio
AREN trades at 0.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AREN's PEG of -0.65 indicates potential undervaluation.
Price to Book
The market values The Arena Group Holdings, Inc. at -19.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.07 times EBITDA. This is generally considered low.
How Well Does AREN Make Money?
Net Profit Margin
For every $100 in sales, The Arena Group Holdings, Inc. keeps $92.61 as profit after all expenses.
Operating Margin
Core operations generate 30.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.15 in profit for every $100 of shareholder equity.
ROA
The Arena Group Holdings, Inc. generates $1.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Arena Group Holdings, Inc. generates strong operating cash flow of $39.36M, reflecting robust business health.
Free Cash Flow
The Arena Group Holdings, Inc. generates strong free cash flow of $30.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.64 in free cash annually.
FCF Yield
AREN converts 32.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
-19.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-20.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-3.15
vs 25 benchmark
ROA
Return on assets percentage
1.11
vs 25 benchmark
ROCE
Return on capital employed
0.43
vs 25 benchmark
How AREN Stacks Against Its Sector Peers
| Metric | AREN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.74 | 22.85 | Better (Cheaper) |
| ROE | -314.78% | 996.00% | Weak |
| Net Margin | 92.61% | -61402.00% (disorted) | Strong |
| Debt/Equity | -20.74 | 1.12 | Strong (Low Leverage) |
| Current Ratio | 2.10 | 1.65 | Strong Liquidity |
| ROA | 110.88% | -583089.00% (disorted) | Strong |
AREN outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Arena Group Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-88.76%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
87.55%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
98.66%
Industry Style: Growth, Technology, Streaming
High Growth