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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash-to-Debt 0.54
ARRS's Cash-to-Debt is ranked lower than
73% of the 552 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.01 vs. ARRS: 0.54 )
Ranked among companies with meaningful Cash-to-Debt only.
ARRS' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.01  Med: 0.49 Max: No Debt
Current: 0.54
Equity-to-Asset 0.42
ARRS's Equity-to-Asset is ranked lower than
74% of the 542 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.58 vs. ARRS: 0.42 )
Ranked among companies with meaningful Equity-to-Asset only.
ARRS' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.26  Med: 0.57 Max: 0.82
Current: 0.42
0.26
0.82
Interest Coverage 2.42
ARRS's Interest Coverage is ranked lower than
88% of the 406 Companies
in the Global Communication Equipment industry.

( Industry Median: 86.56 vs. ARRS: 2.42 )
Ranked among companies with meaningful Interest Coverage only.
ARRS' s Interest Coverage Range Over the Past 10 Years
Min: 1.39  Med: 5.43 Max: 14.2
Current: 2.42
1.39
14.2
Piotroski F-Score: 7
Altman Z-Score: 1.94
Beneish M-Score: -2.73
WACC vs ROIC
8.53%
8.16%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating Margin % 2.88
ARRS's Operating Margin % is ranked lower than
51% of the 549 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.00 vs. ARRS: 2.88 )
Ranked among companies with meaningful Operating Margin % only.
ARRS' s Operating Margin % Range Over the Past 10 Years
Min: -10.32  Med: 5.41 Max: 13.43
Current: 2.88
-10.32
13.43
Net Margin % 2.71
ARRS's Net Margin % is ranked higher than
53% of the 550 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.23 vs. ARRS: 2.71 )
Ranked among companies with meaningful Net Margin % only.
ARRS' s Net Margin % Range Over the Past 10 Years
Min: -11.33  Med: 2.94 Max: 9.91
Current: 2.71
-11.33
9.91
ROE % 6.00
ARRS's ROE % is ranked higher than
56% of the 530 Companies
in the Global Communication Equipment industry.

( Industry Median: 4.25 vs. ARRS: 6.00 )
Ranked among companies with meaningful ROE % only.
ARRS' s ROE % Range Over the Past 10 Years
Min: -13.65  Med: 5.5 Max: 21.74
Current: 6
-13.65
21.74
ROA % 2.41
ARRS's ROA % is ranked higher than
53% of the 554 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.06 vs. ARRS: 2.41 )
Ranked among companies with meaningful ROA % only.
ARRS' s ROA % Range Over the Past 10 Years
Min: -8.9  Med: 2.97 Max: 7.64
Current: 2.41
-8.9
7.64
ROC (Joel Greenblatt) % 27.03
ARRS's ROC (Joel Greenblatt) % is ranked higher than
73% of the 547 Companies
in the Global Communication Equipment industry.

( Industry Median: 9.34 vs. ARRS: 27.03 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
ARRS' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -41.4  Med: 31.63 Max: 69.76
Current: 27.03
-41.4
69.76
3-Year Revenue Growth Rate 9.00
ARRS's 3-Year Revenue Growth Rate is ranked higher than
68% of the 495 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.50 vs. ARRS: 9.00 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
ARRS' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -33.4  Med: 5.5 Max: 58.2
Current: 9
-33.4
58.2
3-Year EBITDA Growth Rate 21.90
ARRS's 3-Year EBITDA Growth Rate is ranked higher than
73% of the 366 Companies
in the Global Communication Equipment industry.

( Industry Median: 7.90 vs. ARRS: 21.90 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
ARRS' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -82  Med: 15 Max: 202.4
Current: 21.9
-82
202.4
» ARRS's 30-Y Financials

Financials (Next Earnings Date: 2017-10-26 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

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Business Description

Industry: Communication Equipment » Communication Equipment    NAICS: 334290    SIC: 3663
Compare:NAS:BBRY, NAS:SATS, OTCPK:PRYMY, OTCPK:ETCMY, NAS:UBNT, NAS:LITE, OTCPK:VTKLY, NAS:VSAT, NYSE:CIEN, NAS:COMM, NAS:FNSR, NYSE:ZAYO, OTCPK:SMNUF, NAS:VIAV, NYSE:PLT, NAS:INFN, OTCPK:MDDWF, NAS:ACIA, OTCPK:VCMMF, NYSE:KN » details
Traded in other countries:AFA.Germany,
Headquarter Location:USA
ARRIS International PLC is a media entertainment and data communications solutions provider. It provides Customer Premises Equipment including set-top, gateway, DSL & cable modem; and Network & Cloud including video infrastructure.

ARRIS International PLC is a media entertainment and data communications solutions provider. Its innovations combine hardware, software, and services across the cloud, network, and home to power TV and Internet for millions of people around the globe. It operates in two business segments, Customer Premises Equipment, and Network & Cloud. It specializes in enabling multichannel video programming distribution including cable, telephone, and digital broadcast satellite operatorion. It operates manufacturing facilities in Taipei, Taiwan; Tijuana, Mexico, and Manaus, Brazil.

Guru Investment Theses on ARRIS International PLC

FPA Capital Comments on Arris - May 09, 2016

Arris (NASDAQ:ARRS) provides cable operators with communication systems that make it possible for users to consume bandwidth. When customers demand faster internet speeds and more bandwidth to watch movies or upload pictures, the internet providers have to upgrade their infrastructure. This is where ARRS comes in, because it provides the hardware and software needed for expanding network capacity.

We initially invested in Arris in November 2010, and we more than doubled our investment in 2013 after they acquired Motorola Home from Google. This acquisition transformed ARRS into one of the market leaders in all aspects of the cable infrastructure market, with No. 1 market share in cable modem termination systems, No. 1 in cable modem shipments, and a close No. 2 to Cisco in set-top boxes. We thought ARRS got a good deal by buying from a motivated seller, and we had great confidence in the management team’s ability to integrate this very large acquisition. This thesis largely played out, and the stock price tripled from November 2010 to March 2014.

We started buying again at a time when four of the company’s five largest customers—Time Warner, Comcast, Charter and AT&T—were involved in M&A talks. The uncertainty over consolidation forced those companies to rein in big spending, slowing orders at ARRS. We consider this a short-term issue because the level of competition is stronger than ever, between both the traditional players and newcomers such as Amazon and Netflix. In addition, Arris’s products help these companies differentiate themselves, and there is a major replacement cycle around the corner. We believe the future is bright for Arris.

Arris sells a great number of products to a global customer base of corporate giants, and we believe there is tremendous growth ahead for Arris in the foreseeable future. Arris’s largest customers are running out of network capacity, so their CapEx plans should remain elevated.

In April 2015, Arris announced another big acquisition—Pace plc. In our opinion, the deal is very attractive financially because there are large synergy opportunities. Moreover, this purchase cements the company’s size advantage over competitors and further diversifies its client base. At the time of the announcement, the company said it expected 45 to 55 cents of non-GAAP6 accretion in the first year. It has already increased that forecast to 65 to 75 cents.

Once the synergies start kicking in, the company could generate as much as $700 million to $800 million of owner earnings. Arris is trading at about 6x owner earnings to pro-forma enterprise value.

From FPA Capital Fund (Trades, Portfolio)'s first quarter 2016 commentary.

Check out FPA Capital Fund latest stock trades

Ratios

vs
industry
vs
history
PE Ratio 30.77
ARRS's PE Ratio is ranked lower than
57% of the 350 Companies
in the Global Communication Equipment industry.

( Industry Median: 26.48 vs. ARRS: 30.77 )
Ranked among companies with meaningful PE Ratio only.
ARRS' s PE Ratio Range Over the Past 10 Years
Min: 6.32  Med: 16.58 Max: 1655.5
Current: 30.77
6.32
1655.5
Forward PE Ratio 10.59
ARRS's Forward PE Ratio is ranked higher than
90% of the 60 Companies
in the Global Communication Equipment industry.

( Industry Median: 17.09 vs. ARRS: 10.59 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 30.77
ARRS's PE Ratio without NRI is ranked lower than
57% of the 354 Companies
in the Global Communication Equipment industry.

( Industry Median: 27.00 vs. ARRS: 30.77 )
Ranked among companies with meaningful PE Ratio without NRI only.
ARRS' s PE Ratio without NRI Range Over the Past 10 Years
Min: 6.25  Med: 16.58 Max: 1655.5
Current: 30.77
6.25
1655.5
Price-to-Owner-Earnings 7.52
ARRS's Price-to-Owner-Earnings is ranked higher than
85% of the 237 Companies
in the Global Communication Equipment industry.

( Industry Median: 21.93 vs. ARRS: 7.52 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
ARRS' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 5.64  Med: 15.27 Max: 239.83
Current: 7.52
5.64
239.83
PB Ratio 1.78
ARRS's PB Ratio is ranked higher than
54% of the 521 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.95 vs. ARRS: 1.78 )
Ranked among companies with meaningful PB Ratio only.
ARRS' s PB Ratio Range Over the Past 10 Years
Min: 0.62  Med: 1.69 Max: 3.47
Current: 1.78
0.62
3.47
PS Ratio 0.83
ARRS's PS Ratio is ranked higher than
69% of the 541 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.46 vs. ARRS: 0.83 )
Ranked among companies with meaningful PS Ratio only.
ARRS' s PS Ratio Range Over the Past 10 Years
Min: 0.57  Med: 1.1 Max: 2.02
Current: 0.83
0.57
2.02
Price-to-Free-Cash-Flow 7.35
ARRS's Price-to-Free-Cash-Flow is ranked higher than
84% of the 203 Companies
in the Global Communication Equipment industry.

( Industry Median: 17.98 vs. ARRS: 7.35 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
ARRS' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 4.56  Med: 12.45 Max: 39.88
Current: 7.35
4.56
39.88
Price-to-Operating-Cash-Flow 6.62
ARRS's Price-to-Operating-Cash-Flow is ranked higher than
82% of the 268 Companies
in the Global Communication Equipment industry.

( Industry Median: 14.09 vs. ARRS: 6.62 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
ARRS' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 4.05  Med: 10.75 Max: 25.31
Current: 6.62
4.05
25.31
EV-to-EBIT 33.79
ARRS's EV-to-EBIT is ranked lower than
69% of the 357 Companies
in the Global Communication Equipment industry.

( Industry Median: 20.56 vs. ARRS: 33.79 )
Ranked among companies with meaningful EV-to-EBIT only.
ARRS' s EV-to-EBIT Range Over the Past 10 Years
Min: -190.3  Med: 10.6 Max: 394
Current: 33.79
-190.3
394
EV-to-EBITDA 9.54
ARRS's EV-to-EBITDA is ranked higher than
69% of the 385 Companies
in the Global Communication Equipment industry.

( Industry Median: 14.19 vs. ARRS: 9.54 )
Ranked among companies with meaningful EV-to-EBITDA only.
ARRS' s EV-to-EBITDA Range Over the Past 10 Years
Min: -100  Med: 9.2 Max: 46.1
Current: 9.54
-100
46.1
PEG Ratio 0.62
ARRS's PEG Ratio is ranked higher than
83% of the 157 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.90 vs. ARRS: 0.62 )
Ranked among companies with meaningful PEG Ratio only.
ARRS' s PEG Ratio Range Over the Past 10 Years
Min: 0.35  Med: 0.67 Max: 5.49
Current: 0.62
0.35
5.49
Shiller PE Ratio 83.22
ARRS's Shiller PE Ratio is ranked lower than
80% of the 134 Companies
in the Global Communication Equipment industry.

( Industry Median: 30.82 vs. ARRS: 83.22 )
Ranked among companies with meaningful Shiller PE Ratio only.
ARRS' s Shiller PE Ratio Range Over the Past 10 Years
Min: 41.63  Med: 68.13 Max: 231.83
Current: 83.22
41.63
231.83
Current Ratio 1.83
ARRS's Current Ratio is ranked lower than
58% of the 546 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.04 vs. ARRS: 1.83 )
Ranked among companies with meaningful Current Ratio only.
ARRS' s Current Ratio Range Over the Past 10 Years
Min: 1.48  Med: 2.8 Max: 9.93
Current: 1.83
1.48
9.93
Quick Ratio 1.50
ARRS's Quick Ratio is ranked lower than
51% of the 546 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.54 vs. ARRS: 1.50 )
Ranked among companies with meaningful Quick Ratio only.
ARRS' s Quick Ratio Range Over the Past 10 Years
Min: 0.83  Med: 1.55 Max: 8.6
Current: 1.5
0.83
8.6
Days Inventory 43.71
ARRS's Days Inventory is ranked higher than
72% of the 520 Companies
in the Global Communication Equipment industry.

( Industry Median: 69.94 vs. ARRS: 43.71 )
Ranked among companies with meaningful Days Inventory only.
ARRS' s Days Inventory Range Over the Past 10 Years
Min: 32.59  Med: 52.76 Max: 63.83
Current: 43.71
32.59
63.83
Days Sales Outstanding 58.30
ARRS's Days Sales Outstanding is ranked higher than
63% of the 486 Companies
in the Global Communication Equipment industry.

( Industry Median: 68.97 vs. ARRS: 58.30 )
Ranked among companies with meaningful Days Sales Outstanding only.
ARRS' s Days Sales Outstanding Range Over the Past 10 Years
Min: 41.05  Med: 50.85 Max: 72.66
Current: 58.3
41.05
72.66
Days Payable 73.93
ARRS's Days Payable is ranked higher than
63% of the 449 Companies
in the Global Communication Equipment industry.

( Industry Median: 60.55 vs. ARRS: 73.93 )
Ranked among companies with meaningful Days Payable only.
ARRS' s Days Payable Range Over the Past 10 Years
Min: 18.73  Med: 33.7 Max: 85.18
Current: 73.93
18.73
85.18

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio -10.20
ARRS's 3-Year Average Share Buyback Ratio is ranked lower than
76% of the 365 Companies
in the Global Communication Equipment industry.

( Industry Median: -2.20 vs. ARRS: -10.20 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
ARRS' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -29.9  Med: -8.75 Max: 3.2
Current: -10.2
-29.9
3.2

Valuation & Return

vs
industry
vs
history
Price-to-Intrinsic-Value-Projected-FCF 0.79
ARRS's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
77% of the 320 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.48 vs. ARRS: 0.79 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
ARRS' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.53  Med: 0.95 Max: 14.6
Current: 0.79
0.53
14.6
Price-to-Median-PS-Value 0.75
ARRS's Price-to-Median-PS-Value is ranked higher than
83% of the 516 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.14 vs. ARRS: 0.75 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
ARRS' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.25  Med: 0.88 Max: 2.83
Current: 0.75
0.25
2.83
Price-to-Peter-Lynch-Fair-Value 1.24
ARRS's Price-to-Peter-Lynch-Fair-Value is ranked higher than
65% of the 105 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.54 vs. ARRS: 1.24 )
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
ARRS' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.35  Med: 1.25 Max: 13.39
Current: 1.24
0.35
13.39
Earnings Yield (Greenblatt) % 2.96
ARRS's Earnings Yield (Greenblatt) % is ranked higher than
56% of the 553 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.23 vs. ARRS: 2.96 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
ARRS' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: -20.1  Med: 5 Max: 25.5
Current: 2.96
-20.1
25.5
Forward Rate of Return (Yacktman) % 62.00
ARRS's Forward Rate of Return (Yacktman) % is ranked higher than
96% of the 255 Companies
in the Global Communication Equipment industry.

( Industry Median: 8.98 vs. ARRS: 62.00 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
ARRS' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.1  Med: 8.5 Max: 70.3
Current: 62
3.1
70.3

More Statistics

Revenue (TTM) (Mil) $6,697.52
EPS (TTM) $ 0.94
Beta1.42
Short Percentage of Float3.45%
52-Week Range $20.05 - 31.52
Shares Outstanding (Mil)187.78

Analyst Estimate

Dec17 Dec18
Revenue (Mil $) 6,764 7,069
EPS ($) 2.73 3.02
EPS without NRI ($) 2.73 3.02
EPS Growth Rate
(Future 3Y To 5Y Estimate)
N/A
Dividends per Share ($)
» More Articles for ARRS

Headlines

Articles On GuruFocus.com
ARRIS Sponsors Georgia Hispanic Chamber of Commerce Awards Gala Jun 09 2017 
ARRIS Qi3 HD Set-Top Achieves Critical Security Certifications Jun 05 2017 
ARRIS to Present at NASDAQ's 36th Investor Program Jun 01 2017 
DOCOMO PACIFIC Partners with ARRIS for Whole Home TV and High-Speed Broadband Services May 31 2017 
Stofa Selects ARRIS to Transform Network for Gigabit Services May 30 2017 
ARRIS Introduces New Satellite Receivers Supporting HEVC and DVB-S2X Apr 24 2017 
FPA Capital Fund First Quarter Commentary Apr 20 2017 
ARRIS Transcoder Satellite Receiver for Satellite Network Upgrade Selected by Starz Apr 20 2017 
FPA Capital Buys Vista Outdoor, Akorn Apr 19 2017 
Arris Announces First Quarter 2017 Earnings Release Date And Teleconference Details Apr 12 2017 

More From Other Websites
Arris Rated A Buy Despite Set-Top Box Decline; Ruckus Deal A Plus Jun 15 2017
ARRIS Sponsors Georgia Hispanic Chamber of Commerce Awards Gala Jun 09 2017
ARRIS International (ARRS) Up 7% Since Earnings Report: Can It Continue? Jun 06 2017
ARRIS Qi3 HD Set-Top Achieves Critical Security Certifications Jun 05 2017
ARRIS to Present at NASDAQ's 36th Investor Program Jun 01 2017
DOCOMO PACIFIC Partners with ARRIS for Whole Home TV and High-Speed Broadband Services May 31 2017
Stofa Selects ARRIS to Transform Network for Gigabit Services May 30 2017
ETFs with exposure to ARRIS International Plc : May 26, 2017 May 26 2017
ARRIS International Plc :ARRS-US: Earnings Analysis: Q1, 2017 By the Numbers : May 25, 2017 May 25 2017
ARRIS International Plc – Value Analysis (NASDAQ:ARRS) : May 8, 2017 May 08 2017
Post Earnings Coverage as Nokia's Q1 Operating Margin Improved May 08 2017
Edited Transcript of ARRS earnings conference call or presentation 3-May-17 9:00pm GMT May 05 2017
ARRIS International Plc breached its 50 day moving average in a Bullish Manner : ARRS-US : May 5,... May 05 2017
Ferrari Leads 5 Stocks Racing Higher On Earnings May 04 2017
Why ARRIS International plc Jumped 14% Today May 04 2017
ARRIS International (ARRS) Beats Earnings & Revenues in Q1 May 04 2017
Arris Group reports 1Q loss May 03 2017
ARRIS Announces Preliminary and Unaudited First Quarter 2017 Results May 03 2017
Investor Network: ARRIS International Plc to Host Earnings Call May 03 2017
ZoneTV Expands Its Pay-TV Set-Top Box Reach Through Cloud Apr 24 2017

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