📊 ARL Key Takeaways
Is American Realty Investors Inc. (ARL) a Good Investment?
American Realty Investors is a fundamentally distressed real estate operator with persistent unprofitability and negative free cash flow despite revenue growth. The company cannot cover debt obligations from operations (negative 0.7x interest coverage) and maintains critically low cash of $9.6M against $215.4M debt, presenting acute solvency risk.
American Realty Investors shows a weak fundamental profile despite positive reported net income: core operations are unprofitable, operating cash flow is negative, and free cash flow is deeply negative relative to revenue. The balance sheet is not heavily levered, but low cash, negative interest coverage, and the gap between operating loss and net income suggest earnings quality is weak and likely supported by non-core items rather than durable operating strength.
American Realty Investors Inc. Key Strengths (ARL)
- Substantial asset base of $1.1B provides potential asset value
- Revenue growing at 5.7% YoY despite operational challenges
- Moderate leverage with debt-to-equity ratio of 0.35x
- Revenue grew 5.7% year over year, indicating some top-line stability
- Debt-to-equity of 0.35x suggests leverage is manageable relative to equity
- Large asset and equity base provides some balance sheet support
ARL Stock Risks: American Realty Investors Inc. Investment Risks
- Negative profitability across all metrics (operating margin -17.8%, net margin -4.5%) with deteriorating net income
- Negative free cash flow (-$5.1M) and negative interest coverage (-0.7x) indicate inability to service debt from operations
- Critical liquidity position with only $9.6M cash against $215.4M long-term debt creates near-term solvency concerns
- Operating margin of -12.9% shows the core business is losing money
- Operating cash flow of -$5.55M and free cash flow of -$11.52M indicate poor cash generation
- Interest coverage of -0.9x and cash of only $14.18M create financial flexibility risk
Key Metrics to Watch
- Cash balance and debt covenant compliance status
- Path to operating profitability and positive free cash flow
- Real estate asset values and revenue per unit trends
- Operating cash flow and free cash flow trend
- Operating margin and interest coverage improvement
American Realty Investors Inc. (ARL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ARL Profit Margin, ROE & Profitability Analysis
ARL vs Real Estate Sector: How American Realty Investors Inc. Compares
How American Realty Investors Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is American Realty Investors Inc. Stock Overvalued? ARL Valuation Analysis 2026
Based on fundamental analysis, American Realty Investors Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
American Realty Investors Inc. Balance Sheet: ARL Debt, Cash & Liquidity
ARL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: American Realty Investors Inc.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $0.25 reflects profitable operations.
ARL Revenue Growth, EPS Growth & YoY Performance
ARL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $12.0M | -$551.0K | $-0.03 |
| Q3 2025 | $11.6M | $129.0K | $0.01 |
| Q2 2025 | $11.8M | $1.2M | $0.07 |
| Q1 2025 | $11.9M | $1.8M | $0.11 |
| Q3 2024 | $11.6M | $3.0M | $0.18 |
| Q2 2024 | $11.8M | $125.0K | $0.01 |
| Q1 2024 | $11.7M | $1.8M | $0.11 |
| Q3 2023 | $8.3M | $3.0M | $0.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
American Realty Investors Inc. Dividends, Buybacks & Capital Allocation
ARL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for American Realty Investors Inc. (CIK: 0001102238)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARL
What is the AI rating for ARL?
American Realty Investors Inc. (ARL) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARL's key strengths?
Claude: Substantial asset base of $1.1B provides potential asset value. Revenue growing at 5.7% YoY despite operational challenges. ChatGPT: Revenue grew 5.7% year over year, indicating some top-line stability. Debt-to-equity of 0.35x suggests leverage is manageable relative to equity.
What are the risks of investing in ARL?
Claude: Negative profitability across all metrics (operating margin -17.8%, net margin -4.5%) with deteriorating net income. Negative free cash flow (-$5.1M) and negative interest coverage (-0.7x) indicate inability to service debt from operations. ChatGPT: Operating margin of -12.9% shows the core business is losing money. Operating cash flow of -$5.55M and free cash flow of -$11.52M indicate poor cash generation.
What is ARL's revenue and growth?
American Realty Investors Inc. reported revenue of $12.3M.
Does ARL pay dividends?
American Realty Investors Inc. does not currently pay dividends.
Where can I find ARL SEC filings?
Official SEC filings for American Realty Investors Inc. (CIK: 0001102238) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARL's EPS?
American Realty Investors Inc. has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ARL's fundamental grade?
Based on our AI fundamental analysis in June 2026, American Realty Investors Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ARL stock overvalued or undervalued?
Valuation metrics for ARL: ROE of -0.1% (sector avg: 8%), net margin of -4.5% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is ARL's AI grade for 2026?
Our dual AI analysis gives American Realty Investors Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARL's free cash flow?
American Realty Investors Inc.'s operating cash flow is $876.0K, with capital expenditures of $6.0M. FCF margin is -41.3%.
How does ARL compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -4.5% (avg: 20%), ROE -0.1% (avg: 8%), current ratio N/A (avg: 1.5).