American Realty Investors, Inc.
American Realty Investors, Inc. Fundamental Analysis
American Realty Investors, Inc. (ARL) shows moderate financial fundamentals with a PE ratio of 17.36, profit margin of 24.21%, and ROE of 1.99%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 5.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D 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
ModerateARL shows steady but slowing expansion.
Financial Health Score
ExcellentARL maintains a strong and stable balance sheet.
Profitability Score
ExcellentARL achieves industry-leading margins.
Key Financial Metrics
Is ARL Expensive or Cheap?
P/E Ratio
ARL trades at 17.36 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ARL's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values American Realty Investors, Inc. at 0.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.16 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 $24.21 as profit after all expenses.
Operating Margin
Core operations generate -15.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.99 in profit for every $100 of shareholder equity.
ROA
American Realty Investors, Inc. generates $1.12 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 $2.73M, signaling weaker underlying cash strength.
Free Cash Flow
American Realty Investors, Inc. produces free cash flow of $2.73M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
ARL converts 1.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.003
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
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 | 17.36 | 23.05 | Better (Cheaper) |
| ROE | 1.99% | 668.00% | Weak |
| Net Margin | 24.21% | -37500.00% (disorted) | Strong |
| Debt/Equity | 0.35 | -17.10 (disorted) | Distorted |
| Current Ratio | 3.00 | 22.78 | Strong Liquidity |
| ROA | 1.12% | 526.00% | 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
-15.82%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
72.76%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-257.71%
Industry Style: Income, Inflation Hedge, REIT
Declining