American Realty Investors (ARL) AI Stock Analysis

• Market Cap: $252.94M
• Dividend Yield: N/A
• Average Volume (3M): 1.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -0.58%
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): <0.01
• Shares Outstanding: 16,152,042
• 10 Day Avg. Volume: 1,259
• 30 Day Avg. Volume: 1,314
• PEG Ratio: 0.03
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 5.01
• P/FCF Ratio: 217.73
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: 11.29
• Enterprise Value/Gross Profit: 24.99
• Enterprise Value/Ebitda: 20.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $17.00 ▲(8.01% Upside)

The overall stock score of 53 reflects a mixed outlook. The most significant factor is the challenging financial performance, with strong revenue growth but negative profitability and inconsistent cash flow. Technical analysis provides some positive momentum, but valuation concerns due to negative earnings weigh heavily. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth suggests effective market penetration and demand for ARL's properties, supporting long-term business expansion.

Improved Leverage

Reduced leverage enhances financial stability, providing ARL with more flexibility to invest in growth opportunities and manage economic downturns.

Free Cash Flow Growth

Improving free cash flow growth indicates better cash management, enabling ARL to reinvest in its portfolio and reduce debt over time.

Negative Factors

Negative Profit Margins

Persistent negative margins highlight operational inefficiencies, which could hinder ARL's ability to sustain profitability and shareholder returns.

Inconsistent Cash Flow

Inconsistent cash flow generation poses risks to financial stability, potentially limiting ARL's capacity to fund operations and growth initiatives.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating shareholder returns, which may affect investor confidence and long-term capital raising ability.

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 properties, which includes residential units, commercial spaces, and industrial facilities. Additionally, the company may earn income through property sales and real estate development projects. Key revenue streams include long-term leases with tenants, short-term rental agreements, and potential appreciation in property values. The company also benefits from strategic partnerships and joint ventures that enhance its investment capabilities and expand its portfolio, contributing to its overall earnings.

American Realty Investors Financial Statement Overview

Summary

American Realty Investors faces a challenging financial landscape. While there is 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. The company needs to focus on improving operational efficiency and cash flow management to enhance overall financial health.

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	49.04M	47.32M	50.50M	37.54M	42.04M	59.03M
Gross Profit	22.16M	20.25M	22.60M	19.20M	21.18M	34.67M
EBITDA	27.03M	5.63M	30.78M	604.07M	43.83M	64.70M
Net Income	5.76M	-14.70M	3.97M	373.35M	3.35M	9.03M
Balance Sheet
Total Assets	0.00	1.03B	1.02B	1.20B	770.57M	865.76M
Cash, Cash Equivalents and Short-Term Investments	0.00	99.72M	127.19M	233.23M	66.75M	36.81M
Total Debt	0.00	185.40M	182.68M	505.23M	556.24M	723.31M
Total Liabilities	0.00	230.53M	206.97M	385.31M	433.72M	535.36M
Stockholders Equity	0.00	601.82M	617.00M	613.49M	240.14M	236.79M
Cash Flow
Free Cash Flow	-18.12M	1.09M	-31.05M	-45.39M	-135.24M	3.50M
Operating Cash Flow	-18.12M	1.09M	-31.05M	-45.39M	-11.52M	3.50M
Investing Cash Flow	-63.41M	-41.34M	26.81M	307.36M	100.82M	4.20M
Financing Cash Flow	42.11M	1.66M	-139.02M	-112.38M	-103.58M	-3.98M

American Realty Investors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 15.74 is below the 20-day moving average (MA) of 15.83, below the 50-day MA of 15.85, and above the 200-day MA of 14.19, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 47.73 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	66 Neutral	$117.00M	8.87	10.39%	―	-19.47%	41.27%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ARL	53 Neutral	$252.94M	-21.38	0.95%	―	-0.58%	―
AMBR	41 Neutral	$235.14M	―	-34.58%	―	-32.18%	―

American Realty Investors Corporate Events

American Realty Investors Reports Strong Q2 2025 Earnings

American Realty Investors, Inc. is a real estate investment company primarily engaged in the acquisition, development, and ownership of income-producing multifamily and commercial properties across the Southern United States. The company also invests in land for future development in high-growth areas.