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Fundamental analysis: American Realty Investors, Inc. (ARL)

Awarener score: 4.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Poor) and growth (Bottom), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 2.0

  • Business has been shrinking at a very fast pace. It's been last-in-rank when measured against peer companies.
  • American Realty Investors, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks slightly worse than rivals.

Margins score: 8.3

  • ARL profit margins -on goods and services sold- are usually good. They stand well ranked against rival companies.
  • Business profit on sales tends to be very poor. It's weak when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually huge considering total sales, and remain great when measured against rivals.
  • Total net profit tends to be huge when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 3.3

  • American Realty Investors, Inc. profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be close to average when compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 9.0

  • ARL managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been better than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

  • American Realty Investors, Inc. usually gets excellent returns on the resources it controls. It proves more than average in relation to peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 3.2

  • ARL on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands more than average in relation to rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is encouraging in relation to industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
  • We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.8

  • American Realty Investors, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
  • The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be a slight improvement compared to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains bottom tier against rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks below average when measured against rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in good shape compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is slightly better than similar enterprises.
  • Usually, sales are on many months credit. It still ranks last-in-rank when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes plenty of months from the purchase to charging customers. It happens to be worse than most peers.
  • Pays suppliers mostly in cash. It ranks more than average in relation to industry peers.
  • The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's in a very weak position compared to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands somewhat worse than rival firms.
  • Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
  • Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 6.3

  • American Realty Investors, Inc. looks cheap in relation to profits and financial position. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company consumed funds. Either it reinvested significantly in the business or genuine fund generation might be struggling, which stands mediocre against similar companies.
  • The company usually consumes much more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving significant business growth, genuine profitability may be brought into question. It's still almost average when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up rather normal in relation to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks a disappointment compared to rival firms.
  • The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains worse than most peer firms.
  • In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still a slight improvement compared to peer companies.

Total score: 5.6


ARL logos

Company at a glance: American Realty Investors, Inc. (ARL)

Sector, industry: Real Estate, Real Estate—Development

Market Cap: 0.24 billions

Revenues TTM: 0.04 billions

American Realty Investors, Inc., together with its subsidiaries, acquires, develops, and owns multifamily apartment communities and commercial real estate properties in the southwestern, southeastern, and mid-western United States. The company leases apartment units to residents; and leases office, industrial, and retail space to various for-profit businesses, as well as local, state, and federal agencies; and sells land and properties. As of December 31, 2021, its portfolio included five commercial properties comprising four office buildings and one retail properties; nine multifamily apartment communities consisting of 1,492 units; and fifty-two multifamily apartment communities totaling 10,281 units. The company also owns or controls 1,886 acres of developed and undeveloped land. American Realty Investors, Inc. was founded in 1999 and is headquartered in Dallas, Texas.

Awarener score: 4.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Poor) and growth (Bottom), and the company's inclination to return cash to the stockholders (Average).