Array Technologies (ARRY) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 7.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -21.31%
• EPS Growth: -593.57%
• Country: US
• Employees: 1,021
• Sector: Technology
• Sector Strength: 79
• Industry: Solar
• EPS (TTM): 0.13
• Shares Outstanding: 152,547,040
• 10 Day Avg. Volume: 4,637,037
• 30 Day Avg. Volume: 7,440,490
• PEG Ratio: -6.07
• Price to Book (P/B): 6.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.13
• Enterprise Value/Market Cap: 3.12
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 11.39
• Enterprise Value/Ebitda: -18.74
• 1Y Price Target: $7.63
• Price Target Upside: -4.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 61 Neutral
• Price Target: $8.00 ▲(0.50%Upside)

The overall score for Array Technologies is driven by strong technical indicators and positive earnings call highlights. However, financial performance and valuation concerns weigh heavily on the stock's attractiveness. The focus on innovation and growth is promising, but challenges in profitability and regulatory environment need to be addressed.

Positive Factors

Financial Performance

ARRY delivered solid results with 10% sequential revenue growth and strong backlog momentum, reaffirming FY25 guidance.

Market Demand

Global demand for solar tracking equipment is estimated to remain strong through at least the end of the decade.

Valuation

Shares are currently trading at a 51% discount based on EV/EBITDA compared to a historical discount of 22%.

Negative Factors

Financial Guidance

Array's guidance for 2025 came in weaker than consensus on top-line growth and EBITDA margin, mainly due to weakness in Brazil.

Pricing Concerns

ARRAY's blended tracker ASP in 2024 was down 14%, with U.S. ASPs down 9% and implied ROW ASPs down 24% from 2023 levels.

Sector Dynamics

There is concern about a broader slowdown in the sector which could indirectly impact Array.

Array Technologies Business Overview & Revenue Model

Company Description

Array Technologies, Inc. manufactures and supplies solar tracking systems and related products in the United States and internationally. Its products include DuraTrack HZ v3, a single-axis solar tracking system; and SmarTrack, a machine learning software that is used to identify the optimal position for a solar array in real time to increase energy production. The company was founded in 1989 and is headquartered in Albuquerque, New Mexico.

How the Company Makes Money

Array Technologies makes money primarily through the sale of its solar tracking systems to utility-scale solar energy projects. The company's revenue model is centered around the manufacturing and distribution of these tracking systems, which are crucial for maximizing the efficiency and output of solar panels by adjusting their position in response to the sun's movements. Key revenue streams include direct sales to solar project developers and operators, as well as partnerships with engineering, procurement, and construction (EPC) firms that integrate Array's technology into their solar installations. Additionally, Array Technologies may generate income from maintenance services and long-term contracts with clients, securing ongoing revenue from existing installations. The company's growth and earnings are significantly influenced by the increasing global demand for renewable energy solutions and the strategic partnerships it forms within the solar industry.

Array Technologies Financial Statement Overview

Summary

Array Technologies faces significant challenges in profitability and growth. Negative margins and high leverage pose risks, though positive free cash flow provides some strength. Improvement in operational efficiency and debt reduction is needed.

Income Statement

Array Technologies shows a challenging income statement with declining revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 29.13%, and the net profit margin is -21.21%, indicating that the company is struggling to translate revenue into profit. The revenue growth rate has been negative recently, and both EBIT and EBITDA margins are negative, which raises concerns about operational efficiency and cost management.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio is quite high at approximately 2.10, suggesting significant leverage, which could be risky if not managed well. However, the equity ratio is 22.70%, indicating that the company maintains some equity buffer. Return on equity (ROE) is negative, reflecting net losses, which is a concern for investors looking for returns on equity.

Cash Flow

Cash flow metrics show some positive signs with a reasonable operating cash flow to net income ratio of about -0.41. Free cash flow is positive, indicating that the company is generating cash after capital expenditures. However, the free cash flow to net income ratio is negative, reflecting challenges in converting profits into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.06B	915.81M	1.58B	1.64B	853.32M	872.66M
	Gross Profit
310.14M	297.68M	415.55M	227.28M	82.86M	202.80M
	EBIT
-207.63M	-227.00M	214.12M	-18.13M	-24.74M	95.21M
	EBITDA
-169.10M	-162.97M	276.21M	81.21M	300.00K	149.13M
	Net Income Common Stockholders
-225.81M	-240.39M	137.24M	4.43M	-50.40M	59.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
348.32M	362.99M	249.08M	133.90M	367.67M	108.44M
	Total Assets
1.43B	1.43B	1.71B	1.71B	1.14B	656.02M
	Total Debt
678.99M	692.58M	707.64M	769.60M	721.26M	428.28M
	Net Debt
330.67M	329.58M	458.56M	635.70M	353.60M	319.84M
	Total Liabilities
1.10B	1.14B	1.10B	1.28B	974.72M	736.92M
	Stockholders Equity
323.60M	288.83M	610.51M	423.85M	168.26M	-80.90M
Cash Flow		Free Cash Flow
74.88M	146.68M	214.97M	130.87M	-266.54M	-123.54M
	Operating Cash Flow
93.42M	153.98M	231.96M	141.49M	-263.19M	-122.20M
	Investing Cash Flow
-9.54M	-9.57M	-16.82M	-384.44M	-15.33M	-1.34M
	Financing Cash Flow
-8.99M	-11.84M	-101.76M	8.44M	537.75M	-129.27M

Array Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARRY, the sentiment is Positive. The current price of 7.96 is above the 20-day moving average (MA) of 7.22, above the 50-day MA of 5.95, and above the 200-day MA of 6.29, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 81.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARRY.

Array Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHLS	70 Outperform	$827.52M	45.22	3.43%	―	-18.10%	-36.91%
JKS	63 Neutral	$949.84M	118.10	-9.49%	15.20%	-30.26%	-156.69%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
ARRY	61 Neutral	$1.13B	―	-49.11%	―	-21.31%	-593.57%
SEDG	56 Neutral	$1.24B	―	-121.50%	―	-57.89%	-559.87%
CSIQ	50 Neutral	$729.33M	20.05	-0.39%	―	-19.06%	-104.91%
MAXN	45 Neutral	$51.87M	―	307.38%	―	-54.68%	63.56%

Array Technologies Corporate Events

Array Technologies Faces Shareholder Concerns on Executive Pay

On May 20, 2025, Array Technologies held its 2025 Annual Meeting of Stockholders where two board members, Jayanthi Iyengar and Tracy Jokinen, were elected for three-year terms. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. However, a non-binding advisory proposal regarding executive compensation did not receive majority support, indicating potential shareholder concerns over executive pay.

The most recent analyst rating on (ARRY) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Array Technologies stock, see the ARRY Stock Forecast page.