Array Technologies, Inc. Fundamental Analysis (NASDAQ: ARRY)
Array Technologies, Inc. (NASDAQ: ARRY) shows moderate financial fundamentals with a PE ratio of -5.39, profit margin of -7.25%, and ROE of -47.02%. The company generates $1.2B in annual revenue with strong year-over-year growth of 40.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARRY's fundamental strength across five key dimensions:
Efficiency Score
WeakARRY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentARRY trades at attractive valuation levels.
Growth Score
ExcellentARRY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentARRY maintains a strong and stable balance sheet.
Profitability Score
WeakARRY struggles to sustain strong margins.
Key Financial Metrics
Is ARRY Expensive or Cheap?
P/E Ratio
ARRY trades at -5.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARRY's PEG of 0.65 indicates potential undervaluation.
Price to Book
The market values Array Technologies, Inc. at -4.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 87.89 times EBITDA. This signals the market has high growth expectations.
How Well Does ARRY Make Money?
Net Profit Margin
For every $100 in sales, Array Technologies, Inc. keeps $-7.25 as profit after all expenses.
Operating Margin
Core operations generate 3.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-47.02 in profit for every $100 of shareholder equity.
ROA
Array Technologies, Inc. generates $-5.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Array Technologies, Inc. produces operating cash flow of $162.82M, showing steady but balanced cash generation.
Free Cash Flow
Array Technologies, Inc. generates strong free cash flow of $134.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.88 in free cash annually.
FCF Yield
ARRY converts 16.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.47
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How ARRY Stacks Against Its Sector Peers
| Metric | ARRY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.39 | 22.27 | Better (Cheaper) |
| ROE | -47.02% | 1228.00% | Weak |
| Net Margin | -7.25% | 1247.00% | Weak |
| Debt/Equity | -3.73 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 2.20 | 5.40 | Strong Liquidity |
| ROA | -5.60% | 4396.00% | Weak |
ARRY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Array Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.51%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-173.62%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
169.34%
Industry Style: Cyclical, Value, Commodity
High Growth