Array Technologies Inc (ARRY, Financial), a leading manufacturer of ground-mounting systems used in solar energy projects, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 20.01% since June 2023, marking a notable increase in its market value. As of September 19, 2023, the company's market cap stands at $3.81 billion, with its stock price at $25.24. Over the past week, the stock price has seen a gain of 1.21%, indicating a positive trend in the company's market performance.
Understanding the GF Value and Valuation
The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The current GF Value of Array Technologies Inc is $26.59, which is slightly higher than its current stock price, indicating that the stock is fairly valued. Three months ago, the GF Value was $29.28, suggesting that the stock was modestly undervalued at that time. This change in GF Value and the corresponding stock price indicates a positive adjustment in the company's market valuation.
Company Overview and Industry Significance
Array Technologies Inc operates in the semiconductors industry, manufacturing ground-mounting systems for solar energy projects. The company's integrated system of steel supports, electric motors, gearboxes, and electronic controllers, known as a single-axis tracker, optimizes the orientation of solar panels to the sun, thereby enhancing their energy production. The company has a significant presence in the United States, Australia, Spain, and Brazil, with the majority of its revenue derived from the United States. The company's contribution to the renewable energy sector underscores its industry significance.
Profitability Analysis
Array Technologies Inc's Profitability Rank stands at 3/10 as of June 30, 2023. The company's Operating Margin is 9.58%, which is better than 58.29% of the companies in the industry. The company's ROE, ROA, and ROIC are 27.07%, 6.96%, and 8.79% respectively, indicating a strong return on equity, assets, and invested capital. Over the past decade, the company has had three years of profitability, which is better than 15.56% of the companies in the industry.
Growth Prospects
The company's 3-Year Revenue Growth Rate per Share is 26.50%, which is better than 80.14% of the companies in the industry. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is 18.32%, indicating promising future growth prospects.
Top Holders of Array Technologies Inc
As of the latest data, the top three holders of Array Technologies Inc's stock are Louis Moore Bacon (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Louis Moore Bacon (Trades, Portfolio) holds 1,843,100 shares, accounting for 1.22% of the total shares. PRIMECAP Management (Trades, Portfolio) holds 760,700 shares, representing 0.5% of the total shares. Joel Greenblatt (Trades, Portfolio) holds 270,010 shares, accounting for 0.18% of the total shares.
Competitive Landscape
Array Technologies Inc operates in a competitive industry with significant players such as Shoals Technologies Group Inc (SHLS, Financial) with a market cap of $3.49 billion, Canadian Solar Inc (CSIQ, Financial) with a market cap of $1.74 billion, and Sunnova Energy International Inc (NOVA, Financial) with a market cap of $1.46 billion.
Conclusion
In conclusion, Array Technologies Inc has demonstrated a strong market performance with a significant surge in its stock price over the past three months. The company's profitability and growth prospects indicate a promising future. However, the competitive landscape necessitates continuous innovation and strategic planning. With its current position and future prospects, Array Technologies Inc is a company to watch in the renewable energy sector.
