NYSE:ARLO

Stock Analysis Report

Executive Summary

Arlo Technologies, Inc. provides smart connected devices to monitor the environments in real-time with a Wi-Fi or a cellular network Internet connection in the Americas, Europe, the Middle-East and Africa, and the Asia Pacific regions.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Arlo Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARLO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.6%

ARLO

-1.8%

US Electronic

-1.1%

US Market


1 Year Return

-14.5%

ARLO

5.6%

US Electronic

17.8%

US Market

Return vs Industry: ARLO underperformed the US Electronic industry which returned 5.6% over the past year.

Return vs Market: ARLO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ARLOIndustryMarket
7 Day-7.6%-1.8%-1.1%
30 Day-25.4%-4.9%1.5%
90 Day16.8%-0.4%6.6%
1 Year-14.5%-14.5%6.6%5.6%20.2%17.8%
3 Yearn/a35.0%31.4%47.5%38.1%
5 Yearn/a66.2%58.0%71.2%52.4%

Price Volatility Vs. Market

How volatile is Arlo Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arlo Technologies undervalued compared to its fair value and its price relative to the market?

1.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARLO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARLO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARLO is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: ARLO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARLO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARLO is good value based on its PB Ratio (1.4x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Arlo Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

38.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARLO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ARLO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ARLO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ARLO's revenue (12.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ARLO's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARLO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Arlo Technologies performed over the past 5 years?

-331.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ARLO is currently unprofitable.

Growing Profit Margin: ARLO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ARLO's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare ARLO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARLO is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (13.8%).


Return on Equity

High ROE: ARLO has a negative Return on Equity (-80.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arlo Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ARLO's short term assets ($343.7M) exceed its short term liabilities ($197.3M).

Long Term Liabilities: ARLO's short term assets ($343.7M) exceed its long term liabilities ($50.1M).


Debt to Equity History and Analysis

Debt Level: ARLO is debt free.

Reducing Debt: ARLO has not had any debt for past 5 years.


Balance Sheet

Inventory Level: ARLO has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ARLO's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ARLO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ARLO has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -28.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ARLO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ARLO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARLO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARLO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARLO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Matt McRae (45yo)

2yrs

Tenure

US$14,125,696

Compensation

Mr. Matthew Blake McRae, also known as Matt, serves as Venture Partner at Okapi Venture Capital LLC since joining the firm in 2018. He is Chief Executive Officer of Arlo Technologies, Inc. and is it’s Dire ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD14.13M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew McRae
CEO & Director2yrsUS$14.13m0.42% $1.1m
Christine Gorjanc
Chief Financial Officer1.5yrsUS$5.76m0.32% $821.7k
Marcus Apitz
Senior Vice President of Technology2yrsno datano data
Tejas Shah
Chief Information Officer1.6yrsno datano data
Brian Busse
General Counsel & Corporate Secretary1.6yrsno data0.14% $367.7k
Lily Knowles
Senior Vice President of Marketing & Customer Care2.1yrsno datano data
Tom Babula
Senior Vice President of Sales1.6yrsno datano data
Antoinette Switzer
Senior Vice President of Worldwide Human Resources1.6yrsno datano data
Scott McManigal
Senior Vice President of Design & Experience1.9yrsno datano data
Gordon Mattingly
Senior Vice President of Finance1.6yrsno datano data

1.6yrs

Average Tenure

51yo

Average Age

Experienced Management: ARLO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Matthew McRae
CEO & Director2yrsUS$14.13m0.42% $1.1m
Michael Pope
Independent Director1.3yrsUS$372.30kno data
Jocelyn Carter-Miller
Independent Director1.5yrsUS$396.02k0.030% $77.0k
Ralph Faison
Independent Chairman of the Board1.5yrsUS$405.61k0.21% $537.3k
Prashant Aggarwal
Independent Director1.3yrsUS$371.47kno data
Grady Summers
Independent Director1.5yrsUS$392.81k0.045% $115.3k
Amy Rothstein
Independent Director0.8yrsno datano data

1.5yrs

Average Tenure

52yo

Average Age

Experienced Board: ARLO's board of directors are not considered experienced ( 1.5 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.7%.


Top Shareholders

Company Information

Arlo Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arlo Technologies, Inc.
  • Ticker: ARLO
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$258.166m
  • Shares outstanding: 75.71m
  • Website: https://www.arlo.com

Number of Employees


Location

  • Arlo Technologies, Inc.
  • 3030 Orchard Parkway
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARLONYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2018
2VIDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2018

Biography

Arlo Technologies, Inc. provides smart connected devices to monitor the environments in real-time with a Wi-Fi or a cellular network Internet connection in the Americas, Europe, the Middle-East and Africa, and the Asia Pacific regions. It offers Arlo Security Camera, a battery-operated Wi-Fi security camera; Arlo Q and Arlo Q Plus, an indoor wired solution that allow users to monitor their surroundings; Arlo Pro, a battery-operated weather-resistant Wi-Fi camera; Arlo Go, an LTE-enabled wire-free camera that provides untethered mobile monitoring; and Arlo Baby, a baby monitor with air quality and temperature sensors, motion and audio detection, and advanced night vision. The company also offers Arlo Pro 2, a battery-operated weather-resistant Wi-Fi camera with advancements in sound and motion detection; Arlo Security Light, a wire-free lighting product; Arlo Audio Doorbell, a smart audio doorbell solution to pair with Arlo camera or Arlo Security Light products; Arlo Chime, a product that plugs into standard wall outlet and pairs with the Arlo Audio Doorbell to play various ringtones or act as a siren; and accessories, such as charging accessories, device mounts, and device skins. In addition, it provides Arlo app for iOS and Android devices that allow users to connect various devices; and prepaid services, including even-day cloud video storage with the ability to connect up to five cameras and 90 days of customer support. The company offers its products through retail channels, wholesale distribution and wireless carrier channels, and paid subscription services through in-app purchases. Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:08
End of Day Share Price2020/02/21 00:00
Earnings2019/09/29
Annual Earnings2018/12/31


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.