American Realty Investors, Inc.
$14.66
-4.1%American Realty Investors, Inc., together with its subsidiaries, acquires, develops, and owns multifamily apartment communities and commercial real estate properties in the southwestern, southeastern, and mid-western United States. The company leases apartment units to residents; and leases office, industrial, and retail space to various for-profit businesses, as well as local, state, and federal agencies; and sells land and properties. As of December 31, 2021, its portfolio included five commercial properties comprising four office buildings and one retail properties; nine multifamily apartment communities consisting of 1,492 units; and fifty-two multifamily apartment communities totaling 10,281 units. The company also owns or controls 1,886 acres of developed and undeveloped land. American Realty Investors, Inc. was founded in 1999 and is headquartered in Dallas, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 15.1).
Valuation inputs: P/E 15.1, earnings yield +6.6%, momentum -4.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +2.5%, ROIC -0.5%).
Profitability stack: net margin +31.4%, ROE +2.5%, ROIC -0.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +25.3%, momentum -4.1%, net margin +31.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
American Realty Investors, Inc. Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Strong earnings growth indicates robust business expansion and improving profitability.
Price-EPS Relationship
Earnings are growing but price is falling—potential undervaluation opportunity if growth continues.
Stock Price Change
Over the 1Y period, stock price has decreased by 1.4%.
P/E Ratio (TTM)
Moderate P/E ratio suggests fair market valuation relative to earnings.
Key Insight
Strong earnings growth (+203.8%) is outpacing price appreciation (+-1.4%), potentially indicating an attractive entry point as the market may not have fully recognized the improving fundamentals.
American Realty Investors, Inc. Fair Value Envelope
American Realty Investors, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Negative gross margin indicates the company is losing money on each sale—unsustainable long-term.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Critical situation: Negative gross margins indicate fundamental business model issues. The company loses money on every sale—immediate strategic changes required.
American Realty Investors, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
American Realty Investors, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
American Realty Investors, Inc. Street Expectations Map
No Target Data
No analyst price targets available for arl.
American Realty Investors, Inc. Insider Positioning
During the last 12 months, there has been no insider trading activity reported for ARL.
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Top Buyers
No buying activity
Top Sellers
No selling activity
Insider Activity Analysis
Net Insider Sentiment
No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.
Insider Participation
No insider trading activity reported from any insiders in the past year.
arl Dividend History
Learning Layer
Related Guides
Build conviction on ARL by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.