A Look At Array Technologies (ARRY) Valuation After Recent Share Price Weakness

Recent performance context for Array Technologies

Array Technologies (ARRY) has drawn investor attention after recent share price swings, with the stock showing a 3.7% decline over the past day and a 4.0% decline over the past week.

See our latest analysis for Array Technologies.

While the share price has softened over the past week, Array Technologies has a 30-day share price return of 6.9% and a 90-day share price return of 30.68%, alongside a 1-year total shareholder return of 61.72% but a weak 3 and 5 year total shareholder record, suggesting recent momentum is building from a much tougher longer term experience.

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With Array trading at US$10.69, a value score of 4, a modest 2.5% intrinsic discount and only a small 3.4% gap to analyst targets, you have to ask: is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 2.6% Undervalued

Array Technologies' most followed narrative pegs fair value at about $10.97 per share, just above the recent $10.69 close, framing only a small valuation gap.

Enhanced product mix and technology innovation, with over 35% of the order book for recently launched, higher value products targeting challenging terrains and emerging extreme weather concerns, increasing pricing power and supporting margin expansion, thus improving gross margins and earnings.

Read the complete narrative.

It is worth examining how a modest discount can still rest on specific assumptions for revenue, margins and future profit multiples. The full narrative describes the earnings path that underpins that fair value estimate.

Result: Fair Value of $10.97 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on policy and execution, with shifting tariffs and the challenge of lifting margins from a net income loss of US$92.105m both acting as key swing factors.

Find out about the key risks to this Array Technologies narrative.

Build Your Own Array Technologies Narrative

If you see the numbers differently or simply prefer to build on your own research, you can shape a full thesis in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Array Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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