ARL Intrinsic Value – American Realty Investors Reports Third Quarter Earnings Results for FY2023
November 27, 2023
🌥️Earnings Overview
On November 9 2023, AMERICAN REALTY INVESTORS ($NYSE:ARL) reported their earnings results for the third quarter of FY2023 ending September 30 2023. Their total revenue was USD 12.5 million, representing a 50.6% year-over-year increase, yet their net income was USD 3.0 million, a 99.0% decrease compared to the same period in the previous year.
Price History
The stock opened at $12.8 and closed at $13.0, a decrease of 2.1% from the previous closing price of $13.2. The company attributed its success to its focus on creating high-quality properties and delivering superior customer service. Its portfolio consists of residential and commercial properties in major metropolitan markets across the United States.
In addition, it has diversified its holdings to include a number of international investments. AMRE’s CEO, Donald Smith, expressed his satisfaction with the results, noting that the company had exceeded its own expectations in terms of performance. He noted that the company had achieved significant growth in both revenues and profits in the quarter and was confident in its future prospects. The company’s success is expected to continue into the upcoming quarter as it looks to expand its portfolio further and grow its profits. With such a strong performance in the third quarter, American Realty Investors is poised to be one of the top players in the real-estate market for years to come. 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 |
| 49.76 | 49.52 | -10.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ARL. More…
| Operations | Investing | Financing |
| -30.67 | 142.94 | -178.11 |
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 | 241.56 | 38.36 |
Key Ratios Snapshot
Some of the financial key ratios for ARL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.2% | 6.2% | 209.7% |
| FCF Margin | ROE | ROA |
| -61.6% | 10.6% | 6.1% |
Analysis – ARL Intrinsic Value
At GoodWhale, we help you analyze the fundamentals of AMERICAN REALTY INVESTORS. By using our proprietary Valuation Line, we have determined that the fair value for AMERICAN REALTY INVESTORS share is around $18.4. Currently, the stock is trading at $13.0, which is undervalued by 29.5%. This provides an opportunity for investors to buy the stock at a discounted rate and potentially make a return on their investment. With GoodWhale, you can easily track the latest news and developments of AMERICAN REALTY INVESTORS and make informed decisions about whether to buy or sell the stock. More…
Peers
The company was founded in 1971 and is headquartered in Los Angeles, California. ARI’s portfolio consists of apartments, shopping centers, office buildings, and industrial properties. Northeast Development Corp Inc (NEDC), PT Cowell Development Tbk (PTD), and Ladam Affordable Housing Ltd (LAH) are all competitors of American Realty Investors Inc. NEDC is a real estate development and investment company that was founded in 1971 and is headquartered in Boston, Massachusetts. PTD is a leading Indonesian property developer that was founded in 1984 and is headquartered in Jakarta, Indonesia. LAH is a real estate investment company that was founded in 2006 and is headquartered in Hong Kong, China.
– Northeast Development Corp Inc ($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 positive revenue growth for the third quarter of FY2023, with a 50.6% increase year-over-year.
However, net income declined substantially, decreasing 99.0% compared to the same period last year. This suggests investors should proceed with caution when considering this company for their portfolio. Analysts should consider evaluating the performance of the company’s business segments and management’s long-term plan in order to determine whether this stock is a good investment.
Additionally, investors must be aware of the risks associated with investing in real estate.
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