American Realty Investors (ARL) AI Stock Analysis

• Market Cap: $221.28M
• Dividend Yield: N/A
• Average Volume (3M): 4.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -4.84%
• EPS Growth: -412.72%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): 0.17
• Shares Outstanding: 16,152,042
• 10 Day Avg. Volume: 3,757
• 30 Day Avg. Volume: 4,063
• PEG Ratio: 0.12
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 5.01
• P/FCF Ratio: 217.73
• Enterprise Value/Market Cap: 2.50
• Enterprise Value/Revenue: 11.68
• Enterprise Value/Gross Profit: 26.35
• Enterprise Value/Ebitda: -111.96
• 1Y Price Target: $13.50
• Price Target Upside: -1.46% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $13.50 ▼(-1.46% Downside)

The overall stock score is primarily influenced by financial performance challenges, including weak profitability and cash flow issues. Technical analysis provides mixed signals, while valuation concerns are highlighted by a negative P/E ratio and lack of dividend yield.

American Realty Investors Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

American Realty Investors generates revenue primarily through rental income from its diversified portfolio of properties. The company earns significant revenue from leasing residential apartments and commercial spaces, where tenants pay monthly or annual rents. Additionally, ARL may benefit from property appreciation, allowing it to realize capital gains upon the sale of properties. The company could also engage in strategic joint ventures or partnerships with other real estate firms or investors to expand its property holdings and share in the income generated from these investments. Furthermore, ARL may generate revenue through property management fees if it manages properties on behalf of third parties.

American Realty Investors Financial Statement Overview

Summary

American Realty Investors faces financial challenges typical in real estate development, with weak profitability and cash flow. Despite a strong equity position, the company struggles with negative net profit margins and cash flow issues, indicating operational difficulties.

Income Statement

The income statement reveals a mixed performance. The company experienced a slight revenue growth of 0.23% in the TTM, but profitability remains a challenge, with a negative net profit margin of -28.44% and negative EBIT and EBITDA margins. The gross profit margin stands at 44.32%, indicating some ability to cover production costs, but overall profitability is weak.

Balance Sheet

The balance sheet shows a relatively strong equity position with an equity ratio of 57.88%. However, the debt-to-equity ratio of 0.33 indicates moderate leverage, which should be monitored closely. Return on Equity is negative due to net losses, suggesting issues with generating returns for shareholders.

Cash Flow

The cash flow statement highlights significant challenges in cash generation. The company has a negative operating cash flow, and free cash flow is also negative. The free cash flow to net income ratio is less relevant due to negative figures, reflecting operational struggles in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.43M	47.32M	50.50M	37.54M	42.04M	59.03M
Gross Profit	21.02M	20.25M	22.60M	19.20M	-4.68M	10.50M
EBITDA	-4.95M	5.63M	2.41M	604.07M	43.83M	64.70M
Net Income	-13.49M	-14.70M	3.97M	373.35M	3.35M	9.03M
Balance Sheet
Total Assets	1.04B	1.03B	1.02B	1.20B	770.57M	865.76M
Cash, Cash Equivalents and Short-Term Investments	88.66M	99.72M	127.19M	233.23M	66.75M	36.81M
Total Debt	201.69M	185.40M	182.68M	317.22M	372.84M	480.60M
Total Liabilities	239.44M	230.53M	206.97M	385.31M	433.72M	535.36M
Stockholders Equity	604.91M	601.82M	617.00M	613.49M	240.14M	236.79M
Cash Flow
Free Cash Flow	-10.19M	1.09M	-31.05M	-46.55M	-135.24M	3.50M
Operating Cash Flow	-10.19M	1.09M	-31.05M	-45.39M	-11.52M	3.50M
Investing Cash Flow	-69.54M	-41.34M	26.81M	307.36M	100.82M	4.20M
Financing Cash Flow	18.71M	1.66M	-139.02M	-112.38M	-103.58M	-3.98M

American Realty Investors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARL, the sentiment is Positive. The current price of 13.7 is above the 20-day moving average (MA) of 12.98, below the 50-day MA of 13.89, and below the 200-day MA of 13.93, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 47.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARL.

American Realty Investors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	79 Outperform	$116.73M	9.28	10.25%	―	-3.26%	89.15%
FPH	75 Outperform	$581.88M	5.00	10.56%	―	-19.68%	44.82%
FOR	74 Outperform	$1.30B	8.04	10.19%	―	2.35%	-17.21%
Sector *	63 Neutral	$6.82B	13.38	-0.62%	7.30%	3.67%	-27.09%
LSEA	61 Neutral	$411.79M	42.30	1.50%	―	24.15%	-60.70%
ARL	46 Neutral	$221.28M	―	-1.93%	―	-4.84%	-412.72%
OZ	―	$238.06M	―	-10.39%	―	―	―