Array Technologies Inc (ARRY, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $2.14 billion. The current price of $15.24 reflects a significant 11.40% gain over the past week and a 10.68% gain over the past three months. When compared to the GF Value of $22.18, the stock appears to be significantly undervalued, a sentiment echoed by its past GF Value of $25.94. This valuation suggests that ARRY's stock may have considerable room for growth, maintaining its status as significantly undervalued both currently and in the past three months.
Introduction to Array Technologies Inc
Array Technologies Inc, operating within the semiconductors industry, is a leading manufacturer of ground-mounting systems used in solar energy projects. The company's innovative single-axis tracker system enhances the energy production of solar panels by optimizing their orientation to the sun throughout the day. With a strong presence in the United States and expanding operations in Australia, Spain, Brazil, and other regions, Array Technologies has established itself as a key player in the renewable energy sector. The United States remains the primary source of its revenue, reflecting the company's strong foothold in the domestic market.
Assessing Profitability
Array Technologies' Profitability Rank stands at 3 out of 10, indicating challenges in its profitability relative to other companies. However, the company's operating margin of 12.46% is commendable, outperforming 70.23% of its industry peers. Its return on equity (ROE) at 21.60% and return on assets (ROA) at 6.18% are also impressive, surpassing 88.84% and 68.17% of competitors, respectively. The return on invested capital (ROIC) of 10.06% further demonstrates Array Technologies' effective cash flow generation in relation to its capital investment, better than 68.58% of industry peers. Despite these strong metrics, the company has only achieved profitability in 3 of the past 10 years, which is a lower frequency compared to many of its competitors.
Growth Trajectory
Array Technologies has shown robust growth, with a 3-year revenue growth rate per share of 26.50%, outshining 79.36% of industry peers. The company's estimated total revenue growth rate for the next 3 to 5 years stands at 12.09%, which is also higher than 72.92% of its competitors. This growth is a testament to the company's expanding market presence and the increasing demand for renewable energy solutions. The company's growth prospects are a key factor in its stock performance and investor confidence.
Notable Shareholders
Array Technologies' shareholder base includes several prominent investors. Steven Cohen (Trades, Portfolio) leads the pack with 1,537,172 shares, representing a 1.02% share percentage. PRIMECAP Management (Trades, Portfolio) holds 779,700 shares, accounting for 0.52% of the company's shares. John Hussman (Trades, Portfolio) also has a significant stake, with 210,000 shares or 0.14% share percentage. The involvement of these reputable investors underscores the potential they see in Array Technologies' business model and future prospects.
Competitive Landscape
In comparison to its competitors, Array Technologies holds its own in the semiconductors industry. Shoals Technologies Group Inc (SHLS, Financial) has a market cap of $2.63 billion, slightly higher than ARRY's. NEXTracker Inc (NXT, Financial) boasts a larger market cap of $7.8 billion, while Sunrun Inc (RUN, Financial) has a market cap of $3.44 billion. These companies represent the competitive environment in which Array Technologies operates, and the market caps reflect the varying scales and market positions within the industry.
Conclusion
In summary, Array Technologies Inc's stock performance has been impressive, with significant gains over the past week and three months. The company's valuation indicates that it is significantly undervalued according to the GF Value, suggesting potential for future growth. Array Technologies' profitability metrics, particularly its operating margin, ROE, ROA, and ROIC, are strong compared to industry peers, although its historical profitability over the past decade has been less consistent. The company's growth rates are promising, and its shareholder base includes notable investors who recognize its potential. When set against its competitors, Array Technologies maintains a competitive stance in the market, with a solid foundation for continued success in the renewable energy sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
