American Realty Investors (ARL) AI Stock Analysis

• Market Cap: $202.22M
• Dividend Yield: N/A
• Average Volume (3M): 3.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -6.48%
• EPS Growth: -592.10%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 60
• Industry: Real Estate - Development
• EPS (TTM): 0.18
• Shares Outstanding: 16,152,042
• 10 Day Avg. Volume: 4,395
• 30 Day Avg. Volume: 3,730
• PEG Ratio: -1.88
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.14
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 9.72
• Enterprise Value/Ebitda: -136.08
• 1Y Price Target: $15.00
• Price Target Upside: 15.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $14.50 ▲(11.37%Upside)

The overall stock score for ARL is primarily impacted by its financial performance, which shows a strong balance sheet but faces challenges with income volatility and net losses. The technical outlook is moderate, providing some positive signals. However, the valuation is concerning with a negative P/E ratio, indicating potential overvaluation. The lack of earnings call data and corporate events means these factors do not influence the score.

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 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

Mixed financial performance with a strong balance sheet showing no debt and a solid equity position. However, revenue volatility and recent net losses are concerns. Cash flow is improving but remains inconsistent.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.32M	50.50M	37.54M	56.67M	59.03M
Gross Profit	20.25M	22.60M	19.20M	21.18M	34.67M
EBITDA	6.78M	2.41M	604.07M	43.83M	64.70M
Net Income	-14.70M	3.97M	373.35M	3.35M	9.03M
Balance Sheet
Total Assets	1.03B	1.02B	1.20B	770.57M	865.76M
Cash, Cash Equivalents and Short-Term Investments	99.72M	127.19M	233.23M	66.75M	36.81M
Total Debt	185.40M	182.68M	317.22M	372.84M	480.60M
Total Liabilities	230.53M	206.97M	385.31M	433.72M	535.36M
Stockholders Equity	601.82M	617.00M	613.49M	240.14M	236.79M
Cash Flow
Free Cash Flow	1.09M	-31.05M	-46.55M	-135.24M	3.50M
Operating Cash Flow	1.09M	-31.05M	-45.39M	-11.52M	3.50M
Investing Cash Flow	-41.34M	26.81M	307.36M	100.82M	4.20M
Financing Cash Flow	1.66M	-139.02M	-112.38M	-103.58M	-3.98M

American Realty Investors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 13.02 is below the 20-day moving average (MA) of 14.10, below the 50-day MA of 13.99, and below the 200-day MA of 14.13, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 6.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARL.

American Realty Investors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPH	81 Outperform	$645.44M	4.92	12.27%	―	11.66%	78.44%
AXR	79 Outperform	$115.00M	8.95	10.82%	―	30.36%	481.87%
FOR	77 Outperform	$1.11B	6.69	10.81%	―	-5.60%	-17.86%
LSEA	61 Neutral	$411.79M	42.30	1.50%	―	24.15%	-60.70%
Sector *	54 Neutral	$1.19B	3.64	0.13%	6.72%	-2.13%	-128.06%
ARL	52 Neutral	$202.22M	―	-2.20%	―	-6.48%	-592.10%
OZ	―	$249.61M	―	-9.30%	―	―	―