ARAR
US • —
$35.14
P/E
11.39
PEG
0.03
FCF Yield
—
Rev Growth YoY
+28.8% YoY
Gross Margin
72.1%
Health Score
6/10
D/E Ratio
0.19
Confidence
LOW
Business Snapshot
This company operates in a sector not specified in the data, but its high gross margins of 72.1% suggest a business model with strong pricing power or low variable costs, typical of asset-light or intellectual property-driven industries. The company is currently trading at a market capitalisation that was not available, preventing classification by size tier. With a trailing twelve-month P/E of 11.39x, the company is being valued at a significant discount to the sector average of 22x, suggesting the market may be pricing in risks not yet apparent in reported earnings. A defining characteristic is its very high revenue growth of 28.8% year-over-year, coupled with explosive earnings growth of 364.7%, indicating potential operational leverage or a low base effect from a prior period.
Financial Health
Gross margin stands at 72.1%, a very high level that suggests a defensible business model, though a prior-year comparison was not available to assess direction. Net margin of 16.4% indicates the company is converting a healthy portion of revenue into profit after all expenses...
Risk Assessment
- EARNINGS QUALITY — The company has beaten earnings estimates in 0 of the last 4 quarters, indicating poor guidance credibility and potential for negative earnings surprises.
- DEBT / LIQUIDITY — A current ratio of 0.55x is critically below the 1.0x threshold, suggesting the company may struggle to meet short-term obligations with its current assets.
- FCF / CASH BURN — Free cash flow is unavailable or negative, preventing an assessment of the company's financial sustainability and its ability to fund growth internally.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — The 52-week high and low data were not provided, preventing an assessment of the stock's current position within its historical trading range....
Gross margin stands at 72.1%, a very high level that suggests a defensible business model, though a prior-year comparison was not available to assess direction. Net margin of 16.4% indicates the company is converting a healthy portion of revenue into profit after all expenses. The balance sheet appears conservative, with a debt-to-equity ratio of just 0.19x, indicating minimal reliance on leverage. However, the current ratio of 0.55x is critically low, signalling potential liquidity risk as current liabilities significantly exceed current assets. Free cash flow data was not available, making it impossible to assess the company's ability to self-fund operations or service its short-term obligations from operating cash generation.
- EARNINGS QUALITY — The company has beaten earnings estimates in 0 of the last 4 quarters, indicating poor guidance credibility and potential for negative earnings surprises. - DEBT / LIQUIDITY — A current ratio of 0.55x is critically below the 1.0x threshold, suggesting the company may struggle to meet short-term obligations with its current assets. - FCF / CASH BURN — Free cash flow is unavailable or negative, preventing an assessment of the company's financial sustainability and its ability to fund growth internally. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - 52-WEEK POSITION — The 52-week high and low data were not provided, preventing an assessment of the stock's current position within its historical trading range.
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