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ARRY

Array Technologies NasdaqGM:ARRY Stock Report

Last Price

US$16.58

Market Cap

US$2.5b

7D

-0.8%

1Y

-8.4%

Updated

30 Sep, 2022

Data

Company Financials +
ARRY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Array Technologies
Historical stock prices
Current Share PriceUS$16.58
52 Week HighUS$27.67
52 Week LowUS$5.45
Beta0
1 Month Change-20.67%
3 Month Change49.50%
1 Year Change-8.40%
3 Year Changen/a
5 Year Changen/a
Change since IPO-54.51%

Recent News & Updates

Sep 10

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.

Shareholder Returns

ARRYUS ElectricalUS Market
7D-0.8%-1.2%-2.5%
1Y-8.4%-23.2%-23.2%

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.

Price Volatility

Is ARRY's price volatile compared to industry and market?
ARRY volatility
ARRY Average Weekly Movement14.1%
Electrical Industry Average Movement10.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
19891,135Kevin Hostetlerhttps://arraytechinc.com

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

How do Array Technologies's earnings and revenue compare to its market cap?
ARRY fundamental statistics
Market CapUS$2.49b
Earnings (TTM)-US$113.80m
Revenue (TTM)US$1.13b

2.2x

P/S Ratio

-21.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARRY income statement (TTM)
RevenueUS$1.13b
Cost of RevenueUS$1.04b
Gross ProfitUS$90.15m
Other ExpensesUS$203.95m
Earnings-US$113.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.76
Gross Margin7.95%
Net Profit Margin-10.03%
Debt/Equity Ratio234.6%

How did ARRY perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ARRY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

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

  • Analyst Forecast

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.

ARRY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA-236.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ARRY's PS Ratio compare to its peers?

ARRY PS Ratio vs Peers
The above table shows the PS ratio for ARRY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.6x
FLNC Fluence Energy
1.8x27.7%US$2.5b
VICR Vicor
7.1x21.0%US$2.6b
ENS EnerSys
0.7x5.0%US$2.4b
WIRE Encore Wire
0.7x-11.0%US$2.2b
ARRY Array Technologies
2.2x15.3%US$2.5b

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.

ARRY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio1.3x

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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Future Growth

How is Array Technologies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


98.9%

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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Past Performance

How has Array Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-61.7%

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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Financial Health

How is Array Technologies's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.


Balance Sheet


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Dividend

What is Array Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Array Technologies Dividend Yield vs Market
How does Array Technologies dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Kevin Hostetler (54 yo)

0.42yr

Tenure

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...


Leadership Team

Experienced Management: ARRY's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARRY's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

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

NasdaqGM:ARRY Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
19 Sep 22SellUS$24,409Kenneth StacherskiIndividual1,327US$18.39
01 Sep 22SellUS$59,536,510Blackstone Inc.Company2,705,132US$23.24
26 Aug 22BuyUS$151,650Gerrard SchmidIndividual7,000US$21.66
16 Aug 22BuyUS$100,092Nipul PatelIndividual4,560US$21.95
19 Jul 22SellUS$65,431Kenneth StacherskiIndividual5,776US$11.33
22 Jun 22SellUS$49,811Erica BrinkerIndividual3,975US$12.53
09 Jun 22SellUS$90,169Tyson HottingerIndividual6,442US$14.00
08 Jun 22BuyUS$499,875Kevin HostetlerIndividual37,500US$13.33
16 May 22BuyUS$7,673Erica BrinkerIndividual1,100US$6.98

Ownership Breakdown

What is the ownership structure of ARRY?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders967,9440.6%
Institutions152,558,47199.4%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.4%.


Top Shareholders

Top 25 shareholders own 77.72% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.38%
BlackRock, Inc.
15,599,926$258.6m19.88%0.01%
8.7%
The Vanguard Group, Inc.
13,081,953$216.9m4.35%0.01%
6.33%
FMR LLC
9,511,036$157.7m-22.73%0.02%
4.8%
Norges Bank Investment Management
7,212,481$119.6m0%0.02%
4.19%
Blackstone Inc.
6,294,868$104.4m-30.06%0.3%
4.11%
Granahan Investment Management, LLC
6,177,656$102.4m32.55%3.39%
3.95%
Franklin Resources, Inc.
5,932,884$98.4m4.07%0.04%
3.76%
Invesco Capital Management LLC
5,655,633$93.8m-23.47%0.08%
3.57%
Electron Capital Partners, LLC
5,372,753$89.1m-12.98%4.31%
3.56%
Frontier Capital Management Co LLC
5,345,141$88.6m-7.16%0.91%
2.41%
State Street Global Advisors, Inc.
3,628,211$60.2m14.89%no data
2.32%
RobecoSAM AG
3,480,053$57.7m0%0.57%
2.27%
Handelsbanken Asset Management
3,406,497$56.5m32.87%0.12%
2.22%
Hill City Capital LP
3,341,335$55.4m119.82%12.01%
1.69%
Geode Capital Management, LLC
2,538,485$42.1m10.4%0.01%
1.65%
Deutsche Asset & Wealth Management
2,486,530$41.2m20.62%0.02%
1.63%
Clearline Capital LP
2,454,210$40.7m-5.41%6.38%
1.59%
T. Rowe Price Group, Inc.
2,396,374$39.7m17.76%no data
1.58%
PRIMECAP Management Company
2,382,600$39.5m0%0.04%
1.44%
Boston Partners Global Investors, Inc.
2,165,421$35.9m0%0.03%
1.29%
Jackson National Asset Management, LLC
1,946,595$32.3m7.32%0.65%
1.2%
Morgan Stanley, Investment Banking and Brokerage Investments
1,810,601$30.0m13.01%0.01%
1.1%
Encompass Capital Advisors LLC
1,650,000$27.4m0%1.82%
1.03%
ARS Investment Partners, LLC
1,547,577$25.7m10580.31%3.75%
0.94%
Principal Global Investors, LLC
1,414,532$23.5m32.05%0.02%

Company Information

Array Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Array Technologies, Inc.
  • 3901 Midway Place NE
  • Albuquerque
  • New Mexico
  • 87109
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARRYNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.