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American Realty Investors (ARL)
NYSE:ARL
US Market
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American Realty Investors (ARL) AI Stock Analysis

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ARL

American Realty Investors

(NYSE:ARL)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
$15.50
▲(4.80% Upside)
Action:Reiterated
Date:07/21/26
The score is held back primarily by uneven financial quality—especially weak/volatile cash flows and negative recent gross profit despite positive net income—offset somewhat by improved leverage and a strong TTM revenue rebound. Technicals are also bearish with the stock trading below key moving averages, while valuation appears roughly average based on the provided P/E.
Positive Factors
Leverage and balance sheet improvement
Leverage materially improved from earlier peaks with debt-to-equity near 0.35 and a large equity base. This lowers refinancing and solvency risk, preserves capital flexibility for acquisitions or capex, and supports resilience through property cycles over the next several quarters.
Negative Factors
Negative gross profit in 2025/TTM
Core property operations showing negative gross profit indicates operating revenues do not cover direct property costs. Reliance on non‑operating items to produce net income undermines sustainability; without structural improvement in property margins, earnings and cash flows are at risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage and balance sheet improvement
Leverage materially improved from earlier peaks with debt-to-equity near 0.35 and a large equity base. This lowers refinancing and solvency risk, preserves capital flexibility for acquisitions or capex, and supports resilience through property cycles over the next several quarters.
Read all positive factors

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

American Realty Investors Business Overview & Revenue Model

Company Description
American Realty Investors, Inc. (ARL), along with its affiliated entities, focuses on the acquisition, development, and ownership of both residential apartment complexes and various commercial real estate assets. Its operational footprint extends ...
How the Company Makes Money
ARL primarily makes money through real-estate operating revenues generated by its property portfolio. Key revenue streams generally include: (1) Rental and lease income: recurring payments from tenants under residential leases (multifamily) and co...

American Realty Investors Financial Statement Overview

Summary
Mixed fundamentals. Revenue rebounded strongly in TTM (~67% growth) and leverage has improved with manageable debt-to-equity (~0.35), but profitability quality is questionable (negative gross profit in 2025/TTM while net income is positive) and cash generation is weak/volatile with frequently negative operating cash flow and modest TTM OCF (~$2.7M).
Income Statement
52
Neutral
Balance Sheet
68
Positive
Cash Flow
34
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue50.35M50.01M47.32M50.50M37.54M42.04M
Gross Profit-9.87M-12.55M20.25M22.60M19.20M21.18M
EBITDA36.43M40.61M3.07M30.78M604.07M43.83M
Net Income12.19M15.70M-14.70M3.97M373.35M3.35M
Balance Sheet
Total Assets1.09B1.10B1.03B1.02B1.20B770.57M
Cash, Cash Equivalents and Short-Term Investments88.26M89.14M99.72M127.19M233.23M66.75M
Total Debt215.44M214.37M185.40M182.68M505.23M556.24M
Total Liabilities273.57M277.60M230.53M206.97M385.31M433.72M
Stockholders Equity619.52M617.40M601.82M617.00M613.49M240.14M
Cash Flow
Free Cash Flow2.73M-5.55M1.09M-31.05M-45.39M-135.24M
Operating Cash Flow2.73M-5.55M1.09M-31.05M-45.39M-11.52M
Investing Cash Flow-20.86M-33.05M-41.34M26.81M307.36M100.82M
Financing Cash Flow9.12M27.55M1.66M-139.02M-112.38M-103.58M

American Realty Investors Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.79
Price Trends
50DMA
16.70
Negative
100DMA
15.57
Negative
200DMA
15.96
Negative
Market Momentum
MACD
-0.71
Positive
RSI
39.51
Neutral
STOCH
57.41
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 14.79 is below the 20-day moving average (MA) of 16.38, below the 50-day MA of 16.70, and below the 200-day MA of 15.96, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 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 20 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
65
Neutral
$123.75M12.047.47%6.34%-19.44%
51
Neutral
$129.28M-5.79-0.85%
49
Neutral
$245.83M20.081.99%6.16%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARL
American Realty Investors
14.99
2.18
17.02%
AXR
Amrep
22.50
0.27
1.21%
AMBR
Amber International Holding
1.40
-5.52
-79.77%
AEI
Alset EHome International
1.09
-0.11
-9.17%
OZ
Belpointe PREP
49.80
-13.70
-21.57%
MRNO
Murano Global Investments
0.23
-6.37
-96.58%
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: Jul 21, 2026