American Realty Investors (ARL) AI Stock Analysis

• Market Cap: $256.17M
• Dividend Yield: N/A
• Average Volume (3M): 2.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: -4.84%
• EPS Growth: -412.72%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.17
• Shares Outstanding: 16,152,042
• 10 Day Avg. Volume: 1,988
• 30 Day Avg. Volume: 2,637
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 11.58
• Enterprise Value/Gross Profit: 33.79
• Enterprise Value/Ebitda: -54.94
• 1Y Price Target: $14.00
• Price Target Upside: -11.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $14.00 ▼(-11.73% Downside)

The overall stock score is primarily influenced by the challenging financial performance, marked by strong revenue growth but negative profitability and inconsistent cash flow. The lack of technical analysis data and a negative P/E ratio further weigh down 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 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 a challenging financial landscape. Despite strong revenue growth, profitability remains a concern with negative margins. The balance sheet shows improved leverage, but returns on equity are negative. Cash flow generation is inconsistent, posing risks to financial stability.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a significant revenue growth rate of 81.6%, but this is overshadowed by negative margins, including a net profit margin of -30.7% and an EBIT margin of -46.5%. Historical data shows fluctuating revenue growth and profitability, with a notable decline in gross profit margins over time. The company faces challenges in maintaining profitability despite revenue growth.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has improved to 0.36 in TTM, indicating a reduction in leverage compared to previous years. However, the return on equity remains negative at -2.43%, suggesting inefficiencies in generating returns for shareholders. The equity ratio is stable, reflecting a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals challenges in cash generation. The TTM data shows negative operating cash flow and free cash flow, although there is a positive free cash flow growth rate of 23.7%. The operating cash flow to net income ratio is negative, indicating difficulties in converting income into cash. Historical data shows inconsistent cash flow performance, with periods of negative free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.81M	47.32M	50.50M	37.54M	42.04M	59.03M
Gross Profit	16.39M	20.25M	22.60M	19.20M	-4.68M	10.50M
EBITDA	-10.08M	5.63M	2.41M	604.07M	43.83M	64.70M
Net Income	-14.69M	-14.70M	3.97M	373.35M	3.35M	9.03M
Balance Sheet
Total Assets	1.09B	1.03B	1.02B	1.20B	770.57M	865.76M
Cash, Cash Equivalents and Short-Term Investments	73.51M	99.72M	127.19M	233.23M	66.75M	36.81M
Total Debt	215.95M	185.40M	182.68M	317.22M	372.84M	480.60M
Total Liabilities	278.22M	230.53M	206.97M	385.31M	433.72M	535.36M
Stockholders Equity	607.77M	601.82M	617.00M	613.49M	240.14M	236.79M
Cash Flow
Free Cash Flow	-12.60M	1.09M	-31.05M	-46.55M	-135.24M	3.50M
Operating Cash Flow	-12.60M	1.09M	-31.05M	-45.39M	-11.52M	3.50M
Investing Cash Flow	-63.75M	-41.34M	26.81M	307.36M	100.82M	4.20M
Financing Cash Flow	33.51M	1.66M	-139.02M	-112.38M	-103.58M	-3.98M

American Realty Investors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 15.86 is above the 20-day moving average (MA) of 14.79, above the 50-day MA of 14.03, and above the 200-day MA of 13.98, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 61.78 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	$111.74M	8.88	10.25%	―	-3.26%	89.15%
FOR	78 Outperform	$1.46B	9.01	10.19%	―	2.35%	-17.21%
FPH	75 Outperform	$612.05M	5.26	10.56%	―	-19.68%	44.82%
LSEA	61 Neutral		―		―	24.15%	-60.70%
Sector *	53 Neutral	$1.22B	3.15	-6.08%	5.81%	-8.21%	-81.31%
ARL	43 Neutral	$256.17M	―	-1.93%	―	-4.84%	-412.72%
OZ	―	$249.14M	―	-10.39%	―	―	―