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American Realty Investors (ARL)
NYSE:ARL
US Market

American Realty Investors (ARL) AI Stock Analysis

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American Realty Investors

(NYSE:ARL)

Rating:51Neutral
Price Target:
$15.00
▲(6.23%Upside)
ARL's overall stock score is primarily driven by its technical analysis, which shows bullish momentum. However, the financial performance is mixed with revenue volatility and net losses, and the valuation is concerning due to a negative P/E ratio. The lack of earnings call and corporate events data limits further insight.

American Realty Investors (ARL) vs. SPDR S&P 500 ETF (SPY)

American Realty Investors Business Overview & Revenue Model

Company DescriptionAmerican 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.
How the Company Makes MoneyAmerican Realty Investors generates revenue primarily through rental income from its diverse portfolio of commercial and residential properties. The company invests in properties with the aim of enhancing their value through strategic management and development. ARL also makes money through the sale of properties, realizing gains when market conditions are favorable. Additionally, partnerships with property management firms and developers contribute to its earnings by optimizing operational efficiencies and ensuring sustainable cash flow.

American Realty Investors Financial Statement Overview

Summary
American Realty Investors shows mixed financial performance with a strong balance sheet due to no debt, but the income statement reveals revenue volatility and recent net losses. Cash flow is improving yet remains inconsistent.
Income Statement
45
Neutral
The company's income statement shows fluctuating revenue with a declining trend in recent years. The gross profit margin stands at 100% for 2024, indicating no cost of goods sold, but this is unusual for a real estate company. The net profit margin for 2024 is negative, reflecting a net loss, which is concerning. Revenue growth has been inconsistent, with a decline in 2024 compared to 2023. EBIT and EBITDA margins are positive in 2024 but have shown volatility over the years.
Balance Sheet
65
Positive
The balance sheet reveals a strong equity position with a debt-to-equity ratio of 0 in 2024, indicating no debt burden, which is a positive sign for stability. The equity ratio is approximately 58.3%, suggesting a solid capital structure. Return on equity is negative in 2024, reflecting net losses. Overall, the balance sheet shows a reduction in liabilities and a healthy cash position.
Cash Flow
50
Neutral
The cash flow statement displays inconsistent cash flow from operations, with positive free cash flow in 2024 after negative figures in previous years. The free cash flow to net income ratio is positive in 2024, indicating that the company is generating cash despite a net loss. Operating cash flow to net income is also positive, suggesting efficient cash management. However, the volatility in cash flows is a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue47.43M47.32M50.50M37.54M56.67M59.03M
Gross Profit21.02M20.25M22.60M19.20M21.18M34.67M
EBITDA-4.95M6.78M2.41M604.07M43.83M64.70M
Net Income-13.49M-14.70M3.97M373.35M3.35M9.03M
Balance Sheet
Total Assets1.04B1.03B1.02B1.20B770.57M865.76M
Cash, Cash Equivalents and Short-Term Investments88.66M99.72M127.19M233.23M66.75M36.81M
Total Debt0.00185.40M182.68M317.22M372.84M480.60M
Total Liabilities239.44M230.53M206.97M385.31M433.72M535.36M
Stockholders Equity604.91M601.82M617.00M613.49M240.14M236.79M
Cash Flow
Free Cash Flow-10.19M1.09M-31.05M-46.55M-135.24M3.50M
Operating Cash Flow-10.19M1.09M-31.05M-45.39M-11.52M3.50M
Investing Cash Flow-69.54M-41.34M26.81M307.36M100.82M4.20M
Financing Cash Flow18.71M1.66M-139.02M-112.38M-103.58M-3.98M

American Realty Investors Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.12
Price Trends
50DMA
13.50
Positive
100DMA
13.25
Positive
200DMA
14.38
Negative
Market Momentum
MACD
0.27
Positive
RSI
49.17
Neutral
STOCH
30.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARL, the sentiment is Negative. The current price of 14.12 is below the 20-day moving average (MA) of 14.57, above the 50-day MA of 13.50, and below the 200-day MA of 14.38, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 30.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARL.

American Realty Investors Risk Analysis

American Realty Investors disclosed 17 risk factors in its most recent earnings report. American Realty Investors reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

American Realty Investors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AXAXR
79
Outperform
$110.35M8.6510.82%30.36%481.87%
FPFPH
76
Outperform
$599.10M4.4712.27%11.66%78.44%
FOFOR
72
Outperform
$1.02B6.1110.81%-5.60%-17.86%
61
Neutral
$411.79M42.301.50%24.15%-60.70%
59
Neutral
C$1.23B0.77-8.20%5.62%9.89%-25.14%
ARARL
51
Neutral
$232.75M-2.20%-6.48%-592.10%
OZOZ
$246.58M-9.30%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARL
American Realty Investors
14.12
-0.37
-2.55%
AXR
Amrep
20.93
2.80
15.44%
FOR
Forestar Group
20.00
-9.91
-33.13%
FPH
Five Point Holdings
5.50
2.52
84.56%
LSEA
Landsea Homes
11.31
2.58
29.55%
OZ
Belpointe PREP
64.50
5.50
9.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025