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ARRIS International

Nasdaq:ARRS
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARRS
Nasdaq
$6B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

ARRIS International plc, together with its subsidiaries, provides entertainment, communications, and networking technology and solutions worldwide. The last earnings update was 36 days ago. More info.


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ARRS Share Price and Events
7 Day Returns
0.2%
NasdaqGS:ARRS
2.3%
US Communications
1.3%
US Market
1 Year Returns
19.2%
NasdaqGS:ARRS
26.7%
US Communications
9%
US Market
ARRS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ARRIS International (ARRS) 0.2% 0% 3.5% 19.2% 45.7% 22.8%
US Communications 2.3% 6.4% 26.5% 26.7% 87.1% 97.7%
US Market 1.3% 3.3% 14.1% 9% 40.8% 49.8%
1 Year Return vs Industry and Market
  • ARRS underperformed the Communications industry which returned 26.7% over the past year.
  • ARRS outperformed the Market in United States of America which returned 9% over the past year.
Price Volatility
ARRS
Industry
5yr Volatility vs Market
Related Companies

ARRS Value

 Is ARRIS International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ARRIS International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ARRIS International.

NasdaqGS:ARRS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ARRS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.088 (1 + (1- 21%) (38.17%))
1.279
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.279 * 5.96%)
10.35%

Discounted Cash Flow Calculation for NasdaqGS:ARRS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ARRIS International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ARRS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.35%)
2019 668.47 Est @ 16.19% 605.77
2020 749.72 Est @ 12.15% 615.67
2021 819.65 Est @ 9.33% 609.96
2022 879.88 Est @ 7.35% 593.36
2023 932.34 Est @ 5.96% 569.76
2024 978.89 Est @ 4.99% 542.10
2025 1,021.12 Est @ 4.31% 512.44
2026 1,060.32 Est @ 3.84% 482.20
2027 1,097.50 Est @ 3.51% 452.29
2028 1,133.42 Est @ 3.27% 423.28
Present value of next 10 years cash flows $5,406.81
NasdaqGS:ARRS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,133.42 × (1 + 2.73%) ÷ (10.35% – 2.73%)
$15,278.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,278.26 ÷ (1 + 10.35%)10
$5,705.70
NasdaqGS:ARRS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,406.81 + $5,705.70
$11,112.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,112.51 / 175.63
$63.27
NasdaqGS:ARRS Discount to Share Price
Calculation Result
Value per share (USD) From above. $63.27
Current discount Discount to share price of $31.66
= -1 x ($31.66 - $63.27) / $63.27
50%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ARRIS International is available for.
Intrinsic value
50%
Share price is $31.66 vs Future cash flow value of $63.27
Current Discount Checks
For ARRIS International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ARRIS International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ARRIS International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ARRIS International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ARRIS International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ARRS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.63
NasdaqGS:ARRS Share Price ** NasdaqGS (2019-04-03) in USD $31.66
United States of America Communications Industry PE Ratio Median Figure of 32 Publicly-Listed Communications Companies 33.17x
United States of America Market PE Ratio Median Figure of 3,067 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ARRIS International.

NasdaqGS:ARRS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ARRS Share Price ÷ EPS (both in USD)

= 31.66 ÷ 0.63

50.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ARRIS International is overvalued based on earnings compared to the US Communications industry average.
  • ARRIS International is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does ARRIS International's expected growth come at a high price?
Raw Data
NasdaqGS:ARRS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 50.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
Not available
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.33x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ARRIS International, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ARRIS International's assets?
Raw Data
NasdaqGS:ARRS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $17.19
NasdaqGS:ARRS Share Price * NasdaqGS (2019-04-03) in USD $31.66
United States of America Communications Industry PB Ratio Median Figure of 67 Publicly-Listed Communications Companies 1.96x
United States of America Market PB Ratio Median Figure of 5,163 Publicly-Listed Companies 1.92x
NasdaqGS:ARRS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ARRS Share Price ÷ Book Value per Share (both in USD)

= 31.66 ÷ 17.19

1.84x

* Primary Listing of ARRIS International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ARRIS International is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess ARRIS International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. ARRIS International has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ARRS Future Performance

 How is ARRIS International expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.7%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is ARRIS International expected to grow at an attractive rate?
  • Unable to compare ARRIS International's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare ARRIS International's earnings growth to the United States of America market average as no estimate data is available.
  • ARRIS International's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ARRS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ARRS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -0.7%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 14.9%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ARRS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ARRS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 6,639 3
2019-12-31 6,753 284 3
NasdaqGS:ARRS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 6,743 649 114
2018-09-30 6,694 342 82
2018-06-30 6,771 237 123
2018-03-31 6,709 380 118
2017-12-31 6,614 534 92
2017-09-30 6,635 647 168
2017-06-30 6,632 820 128
2017-03-31 6,698 835 182
2016-12-31 6,829 363 18
2016-09-30 6,172 455 -40
2016-06-30 5,668 374 -62
2016-03-31 5,198 185 -130

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if ARRIS International is high growth as no earnings estimate data is available.
  • ARRIS International's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ARRS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from ARRIS International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ARRS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGS:ARRS Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.63
2018-09-30 0.45
2018-06-30 0.66
2018-03-31 0.63
2017-12-31 0.49
2017-09-30 0.89
2017-06-30 0.67
2017-03-31 0.95
2016-12-31 0.09
2016-09-30 -0.22
2016-06-30 -0.37
2016-03-31 -0.82

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ARRIS International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ARRIS International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ARRIS International has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ARRS Past Performance

  How has ARRIS International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ARRIS International's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ARRIS International's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • ARRIS International's 1-year earnings growth exceeds its 5-year average (23.6% vs -2.2%)
  • ARRIS International's earnings growth has exceeded the US Communications industry average in the past year (23.6% vs 19.6%).
Earnings and Revenue History
ARRIS International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ARRIS International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ARRS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 6,742.64 113.74 672.72 644.04
2018-09-30 6,694.09 81.70 640.22 634.55
2018-06-30 6,771.37 122.94 591.73 610.03
2018-03-31 6,709.00 117.53 531.94 575.93
2017-12-31 6,614.39 92.03 475.37 539.09
2017-09-30 6,635.02 167.84 449.72 530.05
2017-06-30 6,631.64 127.68 447.81 537.24
2017-03-31 6,697.52 181.58 438.87 556.72
2016-12-31 6,829.12 18.10 454.19 584.91
2016-09-30 6,171.58 -40.14 446.46 585.74
2016-06-30 5,667.85 -62.05 435.26 579.17
2016-03-31 5,197.88 -129.52 436.72 562.85
2015-12-31 4,798.33 92.18 417.09 534.17
2015-09-30 4,960.04 254.90 404.80 536.43
2015-06-30 5,144.07 283.27 406.61 547.03
2015-03-31 5,313.06 305.54 411.76 554.89
2014-12-31 5,322.92 327.21 410.57 556.58
2014-09-30 5,258.60 131.63 425.55 550.55
2014-06-30 4,920.98 94.18 421.72 536.46
2014-03-31 4,492.27 6.69 397.26 515.90
2013-12-31 3,620.90 -48.76 338.25 425.83
2013-09-30 2,765.84 -31.15 271.49 337.05
2013-06-30 2,055.45 -30.45 209.69 251.32
2013-03-31 1,404.41 33.01 161.92 170.64
2012-12-31 1,353.66 53.46 161.34 170.71
2012-09-30 1,290.74 -20.97 158.37 167.79
2012-06-30 1,207.68 -25.12 155.73 160.88

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ARRIS International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ARRIS International used its assets less efficiently than the US Communications industry average last year based on Return on Assets.
  • ARRIS International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ARRIS International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ARRIS International has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ARRS Health

 How is ARRIS International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ARRIS International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ARRIS International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ARRIS International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ARRIS International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ARRIS International Company Filings, last reported 3 months ago.

NasdaqGS:ARRS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,005.85 2,122.33 744.26
2018-09-30 2,953.51 2,137.16 529.96
2018-06-30 3,109.30 2,158.44 555.24
2018-03-31 3,157.37 2,179.95 548.33
2017-12-31 3,184.03 2,203.83 515.04
2017-09-30 3,227.27 2,209.22 1,415.27
2017-06-30 3,142.07 2,231.83 1,386.51
2017-03-31 3,129.01 2,249.09 1,218.05
2016-12-31 3,226.74 2,272.15 1,095.90
2016-09-30 3,060.40 2,307.24 1,099.55
2016-06-30 3,003.85 2,347.12 892.87
2016-03-31 2,906.96 2,360.38 676.25
2015-12-31 1,840.96 1,550.59 879.05
2015-09-30 1,790.85 1,592.02 781.12
2015-06-30 1,778.77 1,593.56 619.79
2015-03-31 1,688.63 1,595.96 628.56
2014-12-31 1,690.76 1,522.40 692.54
2014-09-30 1,490.11 1,561.50 593.82
2014-06-30 1,418.92 1,575.23 551.86
2014-03-31 1,360.47 1,738.26 521.53
2013-12-31 1,318.99 1,751.31 509.80
2013-09-30 1,296.10 2,116.34 666.50
2013-06-30 1,267.77 2,127.94 741.23
2013-03-31 953.20 225.37 608.39
2012-12-31 960.39 222.12 530.12
2012-09-30 928.77 218.94 548.41
2012-06-30 910.79 215.82 539.56
  • ARRIS International's level of debt (70.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (132.7% vs 70.6% today).
  • Debt is well covered by operating cash flow (30.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess ARRIS International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ARRIS International has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ARRS Dividends

 What is ARRIS International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from ARRIS International dividends. Estimated to be 0% next year.
If you bought $2,000 of ARRIS International shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate ARRIS International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate ARRIS International's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ARRS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ARRS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as ARRIS International has not reported any payouts.
  • Unable to verify if ARRIS International's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of ARRIS International's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as ARRIS International has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of ARRIS International's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess ARRIS International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ARRIS International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ARRIS International has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ARRS Management

 What is the CEO of ARRIS International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bruce McClelland
COMPENSATION $4,784,677
AGE 51
TENURE AS CEO 2.6 years
CEO Bio

Mr. Bruce W. McClelland has been the Chief Executive Officer of ARRIS International Plc (Alternative Name: ARRIS Group, Inc.) since September 1, 2016. Mr. McClelland served as Group President of ARRIS International plc since October 2011. He served as its President of ARRIS' Network & Cloud and Global Services since April, 2013. Mr. McClelland's vision and strategy for the business was responsible for ARRIS' broadband network leadership a key driver of the Company's global growth. He served as the President of Broadband Communications Systems at ARRIS International plc since December 2007. Mr. McClelland's prior roles at ARRIS also included ARRIS' Group President, for Products and Services and Vice President and General Manager for ARRIS' Customer Premises Equipment Unit. Mr. McClelland joined ARRIS as Vice President of Engineering, responsible for development of a broad range of voice and data cable TV products. Prior to ARRIS, Mr. McClelland was responsible for the development of Nortel's Signaling System #7 and Signal Transfer Point product lines as well as several development roles within Nortel's Class 4/5 DMS switching product line. He has been a Director of ARRIS International Plc since September 1, 2016. He serves as a Director at ActiveVideo Networks, Inc.

CEO Compensation
  • Bruce's compensation has been consistent with company performance over the past year.
  • Bruce's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the ARRIS International management team in years:

3.7
Average Tenure
55
Average Age
  • The tenure for the ARRIS International management team is about average.
Management Team

Bob Stanzione

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
70

Bruce McClelland

TITLE
CEO & Director
COMPENSATION
$5M
AGE
51
TENURE
2.6 yrs

David Potts

TITLE
Executive VP
COMPENSATION
$3M
AGE
60
TENURE
15.1 yrs

Larry Robinson

TITLE
President of Customer Premises Equipment
COMPENSATION
$2M
AGE
50
TENURE
6 yrs

Tim O'Loughlin

TITLE
President of US Sales
COMPENSATION
$2M
AGE
44
TENURE
3.3 yrs

Karen Renner

TITLE
Senior VP & Chief Information Officer
AGE
56
TENURE
0.6 yrs

Bob Puccini

TITLE
Vice President of Investor Relations
AGE
56

Patrick Macken

TITLE
Senior VP
AGE
44
TENURE
4.1 yrs

Stan Brovont

TITLE
Senior Vice President of Business Development & Marketing

Vicki Brewster

TITLE
Senior Vice President of Human Resources
AGE
55
Board of Directors Tenure

Average tenure and age of the ARRIS International board of directors in years:

5.3
Average Tenure
62
Average Age
  • The tenure for the ARRIS International board of directors is about average.
Board of Directors

Bruce McClelland

TITLE
CEO & Director
COMPENSATION
$5M
AGE
51
TENURE
2.6 yrs

Jim Chiddix

TITLE
Independent Director
COMPENSATION
$250K
AGE
72
TENURE
9.8 yrs

Bob Stanzione

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
70
TENURE
15.9 yrs

Debora Wilson

TITLE
Independent Director
COMPENSATION
$255K
AGE
61
TENURE
8 yrs

Doreen Toben

TITLE
Independent Director
COMPENSATION
$265K
AGE
68
TENURE
5.8 yrs

Andy Heller

TITLE
Lead Independent Director
COMPENSATION
$282K
AGE
63
TENURE
2.9 yrs

David Woodle

TITLE
Independent Director
COMPENSATION
$255K
AGE
63
TENURE
11.4 yrs

Jeong Kim

TITLE
Independent Director
COMPENSATION
$252K
AGE
58
TENURE
4.9 yrs

Tim Bryan

TITLE
Independent Director
COMPENSATION
$255K
AGE
57
TENURE
3.9 yrs

Andrew Barron

TITLE
Independent Director
COMPENSATION
$245K
AGE
53
TENURE
2.7 yrs
Who owns this company?
Recent Insider Trading
  • ARRIS International insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Mar 19 Sell James Brennan Individual 08. Mar 19 08. Mar 19 -6,350 $31.66 $-201,040
01. Mar 19 Sell Ian Whiting Individual 28. Feb 19 28. Feb 19 -14,067 $31.65 $-445,221
26. Feb 19 Sell Daniel Whalen Individual 22. Feb 19 22. Feb 19 -9,560 $31.64 $-302,478
15. Aug 18 Buy J. Bryan Individual 14. Aug 18 14. Aug 18 1,000 $24.30 $24,302
15. Aug 18 Buy Debora Wilson Individual 14. Aug 18 14. Aug 18 4,000 $24.35 $97,400
15. Aug 18 Buy Bruce McClelland Individual 13. Aug 18 13. Aug 18 1,500 $24.08 $36,120
16. Aug 18 Buy David Woodle Individual 15. Aug 18 15. Aug 18 1,000 $23.83 $23,830
08. Aug 18 Buy Jeong Kim Individual 08. Aug 18 08. Aug 18 10,000 $24.15 $241,500
08. Aug 18 Buy Doreen Toben Individual 08. Aug 18 08. Aug 18 1,040 $24.03 $24,986
07. Aug 18 Buy Bruce McClelland Individual 03. Aug 18 03. Aug 18 1,500 $23.81 $35,715
11. May 18 Sell James Brennan Individual 10. May 18 10. May 18 -10,000 $27.39 $-273,850
11. May 18 Sell Patrick Macken Individual 10. May 18 10. May 18 -1,400 $27.37 $-38,311
X
Management checks
We assess ARRIS International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ARRIS International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ARRS News

Simply Wall St News

When Should You Buy ARRIS International plc (NASDAQ:ARRS)?

received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $26.64 at one point, and dropping to the lows of $22.85. … A question to answer is whether ARRIS International's current trading price of $22.85 reflective of the actual value of the? … Let’s take a look at ARRIS International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

ARRIS International plc (NASDAQ:ARRS): Why Return On Capital Employed Is Important

and want to better understand how you can grow your money by investing in ARRIS International plc (NASDAQ:ARRS). … Thus, to understand how your money can grow by investing in ARRIS International, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … What is Return on Capital Employed (ROCE)?

Simply Wall St -

Is ARRIS International plc's (NASDAQ:ARRS) PE Ratio A Signal To Sell For Investors?

ARRIS International plc (NASDAQ:ARRS) is currently trading at a trailing P/E of 41.3x, which is higher than the industry average of 28.2x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … See our latest analysis for ARRIS International

Simply Wall St -

Has ARRIS International plc (NASDAQ:ARRS) Improved Earnings In Recent Times?

After reading ARRIS International plc's (NASDAQ:ARRS) most recent earnings announcement (31 March 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Was ARRS's recent earnings decline worse than the long-term trend and the industry. … ARRS's trailing twelve-month earnings (from 31 March 2018) of US$117.53m has

Simply Wall St -

An Intrinsic Calculation For ARRIS International plc (NASDAQ:ARRS) Shows It's 47.84% Undervalued

In this article I am going to calculate the intrinsic value of ARRIS International plc (NASDAQ:ARRS). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is It The Right Time To Buy ARRIS International plc (NASDAQ:ARRS)?

A question to answer is whether ARRIS International's current trading price of $26.44 reflective of the actual value of the? … Let’s take a look at ARRIS International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change! … See our latest analysis for ARRIS International.

Simply Wall St -

What Should Investors Know About ARRIS International plc's (NASDAQ:ARRS) Profit Margin?

Margin Calculation for ARRS Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 92.03 Million ÷ 6.61 Billion = 1.39% There has been a contraction in ARRIS International's margin over the past five years, due to average revenue growth of 25.90% exceeding a 18.40% average growth in net income, indicating that that a smaller percentage of revenue is being converted in to net income despite the top line growth. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth. … Thus, it is essential to run your own analysis on ARRIS International's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

What You Must Know About ARRIS International plc's (NASDAQ:ARRS) Financial Strength

At this stable level of debt, ARRS's cash and short-term investments stands at US$515.04M , ready to deploy into the business. … Moreover, ARRS has generated cash from operations of US$533.84M in the last twelve months, resulting in an operating cash to total debt ratio of 24.22%, indicating that ARRS’s debt is appropriately covered by operating cash. … Next Steps: At its current level of cash flow coverage, ARRS has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

Why ARRIS International plc (NASDAQ:ARRS) Delivered An Inferior ROE Compared To The Industry

ARRIS International plc’s (NASDAQ:ARRS) most recent return on equity was a substandard 2.08% relative to its industry performance of 6.83% over the past year. … View our latest analysis for ARRIS International Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:ARRS Last Perf Mar 21st 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Should You Sell ARRIS International plc (NASDAQ:ARRS) At This PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ARRS Price per share = $24.75 Earnings per share = $0.891 ∴ Price-Earnings Ratio = $24.75 ÷ $0.891 = 27.8x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … ARRS’s P/E of 27.8x is higher than its industry peers (27.5x), which implies that each dollar of ARRS’s earnings is being overvalued by investors. … For example, if you are inadvertently comparing riskier firms with ARRS, then ARRS’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

ARRS Company Info

Description

ARRIS International plc, together with its subsidiaries, provides entertainment, communications, and networking technology and solutions worldwide. The company’s Customer Premises Equipment segment offers digital subscriber lines and cable modems, broadband gateways, set-top boxes, and video gateways. Its Network & Cloud segment provides cable modem termination system, converged cable access platform, passive optical network, service provider and programmer equipment, Ad insertion technologies, and equipment installed in the ground or aerial that supports the transmission of signals, as well as equipment used to initiate the distribution of content-carrying signals. This segment also offers technical support and professional services; software products that enable providers to deliver content and advertising services; network management products that collect information from the broadband network; and customer experience management solutions, as well as network surveillance and issue correlation software and services. The company’s Enterprise Networks segment provides wired Ethernet switches; and indoor, outdoor, and special-purpose Wi-Fi access points, as well as accessories, such as antennas. This segment also offers SmartCell Insight, a big data Wi-Fi analytics and reporting platform; ZonePlanner, a Wi-Fi planning and modeling software; Smart Positioning Technology, a cloud-based smart Wi-Fi location-based services platform; Cloudpath Wi-Fi device; mobile apps for controllers, cloud Wi-Fi, location, and performance testing; Ruckus Cloud Wi-Fi, a wireless local area network management-as-a-service; SmartZone, a carrier-grade wireless access and management products; and ZoneDirector, a smart Wi-Fi controller, as well as controller-less Smart Wi-Fi access points. The company was formerly known as ARRIS Group, Inc. and changed its name to ARRIS International plc in January 2016. ARRIS International plc is headquartered in Suwanee, Georgia. As of April 4, 2019, ARRIS International plc operates as a subsidiary of CommScope Holding Company, Inc..

Details
Name: ARRIS International plc
ARRS
Exchange: NasdaqGS
Founded:
$5,560,386,975
175,628,142
Website: http://www.arris.com
Address: ARRIS International plc
3871 Lakefield Drive,
Suwanee,
Georgia, 30024,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ARRS New Common Shares Nasdaq Global Select US USD 17. Sep 1993
DB AFA New Common Shares Deutsche Boerse AG DE EUR 17. Sep 1993
LSE 0XID New Common Shares London Stock Exchange GB USD 17. Sep 1993
Number of employees
Current staff
Staff numbers
7,900
ARRIS International employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/06 00:45
End of day share price update: 2019/04/03 00:00
Last estimates confirmation: 2019/04/04
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.