Arlo Technologies, Inc.
Arlo Technologies, Inc. Fundamental Analysis
Arlo Technologies, Inc. (ARLO) shows weak financial fundamentals with a PE ratio of 95.29, profit margin of 2.82%, and ROE of 12.47%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 4.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARLO's fundamental strength across five key dimensions:
Efficiency Score
WeakARLO struggles to generate sufficient returns from assets.
Valuation Score
ModerateARLO shows balanced valuation metrics.
Growth Score
WeakARLO faces weak or negative growth trends.
Financial Health Score
ExcellentARLO maintains a strong and stable balance sheet.
Profitability Score
WeakARLO struggles to sustain strong margins.
Key Financial Metrics
Is ARLO Expensive or Cheap?
P/E Ratio
ARLO trades at 95.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ARLO's PEG of 0.37 indicates potential undervaluation.
Price to Book
The market values Arlo Technologies, Inc. at 11.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 85.56 times EBITDA. This signals the market has high growth expectations.
How Well Does ARLO Make Money?
Net Profit Margin
For every $100 in sales, Arlo Technologies, Inc. keeps $2.82 as profit after all expenses.
Operating Margin
Core operations generate 1.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.47 in profit for every $100 of shareholder equity.
ROA
Arlo Technologies, Inc. generates $4.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arlo Technologies, Inc. produces operating cash flow of $79.78M, showing steady but balanced cash generation.
Free Cash Flow
Arlo Technologies, Inc. generates strong free cash flow of $67.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.63 in free cash annually.
FCF Yield
ARLO converts 4.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
95.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ARLO Stacks Against Its Sector Peers
| Metric | ARLO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 95.29 | 25.83 | Worse (Expensive) |
| ROE | 12.47% | 1278.00% | Weak |
| Net Margin | 2.82% | -43774.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.51 | 10.63 | Neutral |
| ROA | 4.81% | -1539613.00% (disorted) | Weak |
ARLO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arlo Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.10%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
72.99%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
325.83%
Industry Style: Cyclical, Value, Infrastructure
High Growth