American Realty Investors, Inc.
American Realty Investors, Inc. Fundamental Analysis
American Realty Investors, Inc. (ARL) shows moderate financial fundamentals with a PE ratio of 14.09, profit margin of 31.40%, and ROE of 2.58%. The company generates $0.1B in annual revenue with weak year-over-year growth of -6.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARL's fundamental strength across five key dimensions:
Efficiency Score
WeakARL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentARL trades at attractive valuation levels.
Growth Score
WeakARL faces weak or negative growth trends.
Financial Health Score
ExcellentARL maintains a strong and stable balance sheet.
Profitability Score
ModerateARL maintains healthy but balanced margins.
Key Financial Metrics
Is ARL Expensive or Cheap?
P/E Ratio
ARL trades at 14.09 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARL's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values American Realty Investors, Inc. at 0.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.52 times EBITDA. This is generally considered low.
How Well Does ARL Make Money?
Net Profit Margin
For every $100 in sales, American Realty Investors, Inc. keeps $31.40 as profit after all expenses.
Operating Margin
Core operations generate -12.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.58 in profit for every $100 of shareholder equity.
ROA
American Realty Investors, Inc. generates $1.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Realty Investors, Inc. generates limited operating cash flow of $-5.55M, signaling weaker underlying cash strength.
Free Cash Flow
American Realty Investors, Inc. generates weak or negative free cash flow of $-5.55M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.34 in free cash annually.
FCF Yield
ARL converts -2.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
31.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How ARL Stacks Against Its Sector Peers
| Metric | ARL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.09 | 22.50 | Better (Cheaper) |
| ROE | 2.58% | 700.00% | Weak |
| Net Margin | 31.40% | -37372.00% (disorted) | Strong |
| Debt/Equity | 0.35 | -20.81 (disorted) | Distorted |
| Current Ratio | 31.74 | 1949.79 | Strong Liquidity |
| ROA | 1.43% | -1322.00% (disorted) | Weak |
ARL outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Realty Investors, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.31%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
77.43%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
102.65%
Industry Style: Income, Inflation Hedge, REIT
High Growth