ARRY Stock Overview
Array Technologies, Inc. manufactures and supplies solar tracking systems and related products in the United States and internationally.
Array Technologies Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$16.58|
|52 Week High||US$27.67|
|52 Week Low||US$5.45|
|1 Month Change||-20.67%|
|3 Month Change||49.50%|
|1 Year Change||-8.40%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-54.51%|
Recent News & Updates
Array Technologies: Tracking The Sun To A Triumphant Recovery
Summary Array Technologies is a long way away from the dark days of rising steel prices and a collapsing stock price. The company is set to realize strong tailwinds from the expected ramp in utility-scale solar power projects. Revenue recovery has been material, but cash burn remains a point of concern. Array Technologies (ARRY) went public and was immediately hit with a cascade of challenges, both macro and operational, that contributed to a collapse of its post-IPO stock price and seemingly placed its future at risk. The company would see its common shares trade as low as $5 per share, down from its IPO price of $22 per share. The zeitgeist during this fall was characterized by uncertainty, fear, and doubt on what was a clear long-term play on the rising demand for solar power in a world chasing decarbonization. The commons retracement also came in contrast to other pick-and-shovel plays on the growth of solar which would see their pandemic era runs continue to new highs. ARRY data by YCharts The picture now seems to be entirely flipped as steel prices fall precipitously and the recently signed Inflation Reduction Act sets the stage for a dramatic expansion of solar power. Array provides utility-scale solar tracking technology to solar projects with DuraTrack, a single-axis solar tracker, and SmarTrack, solar backtracking machine learning software that further boosts output. Array Technologies The direction of the sun changes throughout the day and solar tracking technology from Array ensures the PV panels are constantly facing its direction. This maximises energy production and increases the returns profile of these solar projects. DuraTrack has been installed on more than 900 utility-scale projects worldwide which together account for around 22 GW of installed capacity. Revenue Recovery Is Now Dramatic And Sustained Steel has realized a sustained fall in prices over the last 12 months as the spectre of a global construction slowdown and full-blown recession dampens the near-term outlook for the commodity. Trading Economics However, the extent to which these will be reflected in Array's gross margins has been limited as the company is not buying steel at spot prices but is instead taking advantage of long-term fixed contracts that better protect them from the gyrations of the commodity. Hence, the collapse of steel prices will likely only start to be fully reflected in earnings from the later parts of fiscal 2023 going into 2024. The company last reported earnings for its fiscal 2022 second quarter which saw revenue come in at $424.9 million, up 116.2% from the year-ago quarter and a huge beat of $87.97 million on consensus estimates. Array has now realized three consecutive quarters of sustained revenue growth. ARRY Revenue (Quarterly) data by YCharts The company's gross profit margins during the quarter at 11.15% was also a marginal increase from gross profit margins of 10.4% in the year-ago quarter. This meant overall profitability increased with adjusted EBITDA coming in at $25.9 million versus $9.9 million in the comparable year-ago quarter. However, both net income and cash from operations came in negative as negative free cash outflow totalled $12.2 million. Trailing twelve-month cash burn at $196 million has exerted pressure on the company's balance sheet. Cash and equivalents stood at $51 million as of the end of the last reported quarter. However, post-period end the company was awarded a $42.75 million legal settlement in relation to a suit against Nextracker for misappropriation of trade secrets. This is set against a $1.9 billion total order book that the company now moves towards fully realizing. This high growth and potentially more profitable future for Array has been compounded by the Inflation Reduction Act. Described by Array's management as the most impact legislation for the solar industry ever, it will allocate $370 billion over 10 years to decarbonization initiatives. The Act is set to offer investment tax credits to boost the rollout of solar power in the US and is set to bring forward the demand for solar, drastically changing the five-year outlook for the industry. Expectations are now for solar deployments to increase by 40%, around 62 GW, over pre-Inflation Reduction Act projections through 2027. Hence, the contribution of solar power to the US electricity grid is about to increase markedly. This was just 3% of U.S. electricity generation from all sources in 2020 and is now set to rise to at least 10% by 2030. Important to note is that these projections were pre-Inflation Reduction Act.
|ARRY||US Electrical||US Market|
Return vs Industry: ARRY exceeded the US Electrical industry which returned -22.6% over the past year.
Return vs Market: ARRY exceeded the US Market which returned -21.5% over the past year.
|ARRY Average Weekly Movement||14.1%|
|Electrical Industry Average Movement||10.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: ARRY is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.
Volatility Over Time: ARRY's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Array Technologies, Inc. manufactures and supplies solar tracking systems and related products in the United States and internationally. Its products include DuraTrack HZ v3, a single-axis solar tracking system; and SmarTrack, a machine learning software that is used to identify the optimal position for a solar array in real time to increase energy production. The company was founded in 1989 and is headquartered in Albuquerque, New Mexico.
Array Technologies Fundamentals Summary
|ARRY fundamental statistics|
Is ARRY overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ARRY income statement (TTM)|
|Cost of Revenue||US$1.04b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.76|
|Net Profit Margin||-10.03%|
How did ARRY perform over the long term?See historical performance and comparison
Is ARRY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ARRY?
Other financial metrics that can be useful for relative valuation.
|What is ARRY's n/a Ratio?|
Price to Sales Ratio vs Peers
How does ARRY's PS Ratio compare to its peers?
|ARRY PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
FLNC Fluence Energy
WIRE Encore Wire
ARRY Array Technologies
Price-To-Sales vs Peers: ARRY is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (2.6x).
Price to Earnings Ratio vs Industry
How does ARRY's PE Ratio compare vs other companies in the US Electrical Industry?
Price-To-Sales vs Industry: ARRY is expensive based on its Price-To-Sales Ratio (2.2x) compared to the US Electrical industry average (2x)
Price to Sales Ratio vs Fair Ratio
What is ARRY's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||2.2x|
|Fair PS Ratio||1.3x|
Price-To-Sales vs Fair Ratio: ARRY is expensive based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).
Share Price vs Fair Value
What is the Fair Price of ARRY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ARRY ($16.58) is trading below our estimate of fair value ($18.19)
Significantly Below Fair Value: ARRY is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Array Technologies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARRY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: ARRY is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ARRY is expected to become profitable in the next 3 years.
Revenue vs Market: ARRY's revenue (15.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: ARRY's revenue (15.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARRY's Return on Equity is forecast to be very high in 3 years time (45.1%).
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How has Array Technologies performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARRY is currently unprofitable.
Growing Profit Margin: ARRY is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ARRY is unprofitable, and losses have increased over the past 5 years at a rate of 61.7% per year.
Accelerating Growth: Unable to compare ARRY's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ARRY is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (27.4%).
Return on Equity
High ROE: ARRY has a negative Return on Equity (-20.62%), as it is currently unprofitable.
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How is Array Technologies's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ARRY's short term assets ($907.9M) exceed its short term liabilities ($515.3M).
Long Term Liabilities: ARRY's short term assets ($907.9M) exceed its long term liabilities ($899.8M).
Debt to Equity History and Analysis
Debt Level: ARRY's net debt to equity ratio (220.4%) is considered high.
Reducing Debt: Insufficient data to determine if ARRY's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ARRY's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if ARRY's interest payments on its debt are well covered by EBIT.
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What is Array Technologies's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Array Technologies Dividend Yield vs Market|
|Company (Array Technologies)||n/a|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Electrical)||2.0%|
|Analyst forecast in 3 Years (Array Technologies)||0%|
Notable Dividend: Unable to evaluate ARRY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ARRY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ARRY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ARRY's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as ARRY has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Hostetler (54 yo)
Mr. Kevin G. Hostetler served as Chief Executive Officer and Director at Rotork plc since March 12, 2018 and February 12, 2018 respectively until January 10, 2022 and served as its Member of Management Boa...
Experienced Management: ARRY's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Experienced Board: ARRY's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ARRY insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|19 Sep 22||SellUS$24,409||Kenneth Stacherski||Individual||1,327||US$18.39|
|01 Sep 22||SellUS$59,536,510||Blackstone Inc.||Company||2,705,132||US$23.24|
|26 Aug 22||BuyUS$151,650||Gerrard Schmid||Individual||7,000||US$21.66|
|16 Aug 22||BuyUS$100,092||Nipul Patel||Individual||4,560||US$21.95|
|19 Jul 22||SellUS$65,431||Kenneth Stacherski||Individual||5,776||US$11.33|
|22 Jun 22||SellUS$49,811||Erica Brinker||Individual||3,975||US$12.53|
|09 Jun 22||SellUS$90,169||Tyson Hottinger||Individual||6,442||US$14.00|
|08 Jun 22||BuyUS$499,875||Kevin Hostetler||Individual||37,500||US$13.33|
|16 May 22||BuyUS$7,673||Erica Brinker||Individual||1,100||US$6.98|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.4%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Array Technologies, Inc.'s employee growth, exchange listings and data sources
- Name: Array Technologies, Inc.
- Ticker: ARRY
- Exchange: NasdaqGM
- Founded: 1989
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Implied Market Cap: US$2.492b
- Shares outstanding: 150.33m
- Website: https://arraytechinc.com
Number of Employees
- Array Technologies, Inc.
- 3901 Midway Place NE
- New Mexico
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ARRY||NasdaqGM (Nasdaq Global Market)||Yes||Common Stock||US||USD||Oct 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.