ARL Intrinsic Stock Value – American Realty Investors Reports Record Earnings for Q2 FY2023
August 18, 2023
🌥️Earnings Overview
On August 10 2023, AMERICAN REALTY INVESTORS ($NYSE:ARL) reported their financial results for the second quarter of FY2023, ending June 30 2023. Revenue was up 50.6% year over year to USD 12.2 million, while net income plummeted 99.3% to USD 0.12 million from the same period in the prior year.
Price History
American Realty Investors reported record earnings for the second quarter of fiscal year 2023 on Thursday. Shares opened at $20.3, and closed the day at $20.5, representing a 2.4% increase from the previous closing price of $20.0. American Realty’s stock continues to trade near its all-time highs, reflecting investors’ strong confidence in the company’s financial health and long-term prospects. With a robust balance sheet and strong cash flows, the company is well positioned to take advantage of additional opportunities to grow in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ARL. More…
| Total Revenues | Net Income | Net Margin |
| 45.55 | 348.83 | 635.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ARL. More…
| Operations | Investing | Financing |
| -44.85 | 264.79 | -207.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ARL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.06k | 244.05 | 38.17 |
Key Ratios Snapshot
Some of the financial key ratios for ARL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.8% | 6.2% | 1244.9% |
| FCF Margin | ROE | ROA |
| -98.4% | 57.5% | 33.4% |
Analysis – ARL Intrinsic Stock Value
GoodWhale recently conducted an analysis of AMERICAN REALTY INVESTORS’s wellbeing. Our proprietary Valuation Line suggests that the fair value of AMERICAN REALTY INVESTORS share is around $16.3. However, at the time of writing, the stock is traded at $20.5 – overvalued by 25.8%. This means that those looking to invest in AMERICAN REALTY INVESTORS need to be aware of the potential risks involved in buying overvalued stocks. To minimize these risks, investors should always conduct their own thorough research and analysis before investing in any stock. More…
Peers
The company was founded in 1971 and is headquartered in Los Angeles, California. ARI’s portfolio consists of apartments, shopping centers, office buildings, and industrial properties. Northeast Development Corp Inc (NEDC), PT Cowell Development Tbk (PTD), and Ladam Affordable Housing Ltd (LAH) are all competitors of American Realty Investors Inc. NEDC is a real estate development and investment company that was founded in 1971 and is headquartered in Boston, Massachusetts. PTD is a leading Indonesian property developer that was founded in 1984 and is headquartered in Jakarta, Indonesia. LAH is a real estate investment company that was founded in 2006 and is headquartered in Hong Kong, China.
– Northeast Development Corp Inc ($OTCPK:NHVP)
Cowell Development Tbk is a publicly traded company with a market capitalization of 243.56 billion as of 2022. The company has a return on equity of -113.7%. Cowell Development Tbk is engaged in the business of real estate development and investment. The company was founded in 2006 and is headquartered in Jakarta, Indonesia.
– PT Cowell Development Tbk ($IDX:COWL)
Ladam Affordable Housing Ltd is a real estate investment trust that focuses on providing affordable housing solutions in the United Kingdom. As of 2022, the company has a market capitalization of 91.16 million pounds and a return on equity of 2.11%. The company’s primary business is to invest in, develop, and manage a portfolio of affordable housing properties.
Summary
American Realty Investors reported strong revenue growth year over year in the second quarter ending June 30th 2023, with total revenue of USD 12.2 million, a 50.6% increase compared to the same period last year. However, net income decreased significantly by 99.3% to USD 0.12 million. Analysts and investors are likely to be cautious regarding the company’s future performance given these mixed results, particularly concerning the sharp contraction in net income. Therefore, potential investors should thoroughly research the company’s fundamentals before deciding whether to invest in American Realty Investors.
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