Array Technologies (ARRY): Assessing Valuation After Two Years of Declining Sales and Earnings

Array Technologies (ARRY) is back in focus after fresh analysis underscored two tough years of roughly 10% annual declines in both sales and earnings per share, along with weakening returns on capital.

See our latest analysis for Array Technologies.

Even with those operational headwinds, the stock has shown some renewed interest, with a 1 day share price return of 7.69 percent and a year to date share price gain of 30.86 percent. However, the 3 year total shareholder return of negative 62.55 percent and 5 year total shareholder return of negative 78.22 percent underline how fragile momentum remains.

If Array’s mixed track record has you reassessing your options, this could be a good moment to scan for other fast growing stocks with high insider ownership that might offer a stronger combination of growth and conviction.

With profits still in the red but the share price rebounding and analysts seeing nearly 25 percent upside, is Array Technologies quietly undervalued, or is the market already pricing in a brighter growth outlook?

Most Popular Narrative Narrative: 19.3% Undervalued

With Array Technologies last closing at $8.82 against a narrative fair value near $10.93, the current share price implies a sizable 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.

Want to see how steady revenue growth, rising margins and a re rated earnings multiple combine into that higher fair value? The full narrative unpacks the exact profit path, the valuation multiple it leans on, and the long term growth assumptions driving that upside case.

Result: Fair Value of $10.93 (UNDERVALUED)

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

However, lingering policy uncertainty and higher tariffs could still delay projects or compress margins, challenging the upbeat recovery assumptions embedded in this valuation.

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

Build Your Own Array Technologies Narrative

If you would rather stress test these assumptions yourself and dig into the numbers directly, you can build a custom view in minutes, Do it your way.

A great starting point for your Array Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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