ARL American Realty Investors, Inc. - Fundamental Analysis

BEARISH

ARL Stock | Fundamental Analysis & Investment Insights

NYSE • Real Estate • Real Estate Services

Current Price Live

$16.66

52W High

$17.37

52W Low

$9.43

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At a glance

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AI Analysis

Confidence Score

85%

Analysis Accuracy

The Advanced Deterministic Scorecard reveals severe financial health concerns with a Piotroski F-Score of just 2/9, indicating weak fundamentals. Despite a low Price/Book ratio of 0.44 and a current price ($16.66) near the Graham Number ($17.19), profitability is inconsistent, with a negative operating margin (-11.25%) and ROA (-0.30%). Earnings volatility is extreme, highlighted by a -35% average earnings surprise and a -216.7% most recent Q/Q EPS decline. Combined with a bearish technical trend (10/100) and lack of analyst coverage, the stock presents significant risk despite modest revenue growth and strong insider sentiment.

Key Strengths

Current price ($16.66) is near the defensive Graham Number ($17.19), suggesting limited downside in a liquidation scenario

Low Price/Book ratio of 0.44 indicates the stock trades below book value, potentially signaling undervaluation

Revenue growth of 7.70% YoY shows top-line expansion in a challenging real estate environment

Strong liquidity position with a Current Ratio of 3.13 and Quick Ratio of 2.79, indicating short-term solvency

Insider Sentiment score of 40/100, while neutral, does not indicate aggressive selling pressure

Key Risks

Critically low Piotroski F-Score of 2/9 signals severe financial distress and weak operating performance

Negative operating margin (-11.25%) and ROA (-0.30%) reflect core business unprofitability

Extreme earnings volatility: average earnings surprise of -35% and a -216.7% Q/Q EPS decline indicate unreliable profitability

Lack of Altman Z-Score prevents definitive bankruptcy risk assessment, but negative ROA and erratic earnings suggest elevated risk

No analyst coverage and missing key financials (EV, debt, cash, FCF) imply low transparency and high information risk

AI Fair Value Estimate

Based on comprehensive analysis

$17.19

+3.2% above current price

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Sector Comparison & Peer Analysis

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