ARRIS International plc [NASDAQ:ARRS]: Analyst Rating and Earnings
Pro stock traders frequently make sure to pay attention what expert market analysts are saying about a potential stock buy. Regarding ARRIS International plc [ARRS] right now, the most recent ratings from Wall St. analysts that we can see right now is regarding the quarter that’s slated to end in December. On average, stock market experts give ARRS an Hold rating. Its stock price has been found in the range of 21.55 to 31.74. This is compared to its latest closing price of $31.65.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for ARRIS International plc [ARRS] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.00.
For the quarter ending in Dec-18 ARRIS International plc [ARRS] generated $1.79 billion in sales. That’s 0.52% higher than the average estimate of $1.78 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Tue 7 May (In 46 Days).
Fundamental Analysis of ARRIS International plc [ARRS]
Now let’s turn to look at profitability: with a current Operating Margin for ARRIS International plc [ARRS] sitting at +3.33 and its Gross Margin at +22.71, this company’s Net Margin is now 1.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.27, and its Return on Invested Capital has reached 4.00%. Its Return on Equity is 3.69, and its Return on Assets is 1.52. These metrics suggest that this ARRIS International plc does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, ARRIS International plc [ARRS] has generated a Total Debt to Total Equity ratio of 70.73. Similarly, its Total Debt to Total Capital is 41.43, while its Total Debt to Total Assets stands at 28.88. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 67.93, and its Long-Term Debt to Total Capital is 39.79. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 9.86 and its Total Debt to EBITDA Value is 3.03. The Enterprise Value to Sales for this firm is now 1.02, and its Total Debt to Enterprise Value stands at 0.30. ARRIS International plc [ARRS] has a Price to Book Ratio of 1.78, a Price to Cash Flow Ratio of 8.45 and P/E Ratio of 49.86. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, ARRIS International plc [ARRS] earns $853,499 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.77 and its Total Asset Turnover is 0.90. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.21 and its Current Ratio is 1.58. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
ARRIS International plc [ARRS] has 174.23M shares outstanding, amounting to a total market cap of $5.52B. Its stock price has been found in the range of 21.55 to 31.74. At its current price, it has moved by -0.25% from its 52-week high, and it has moved 46.91% from its 52-week low.
This stock’s Beta value is currently 0.92, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 70.43. This RSI suggests that ARRIS International plc is currently Overbought.
Conclusion: Is ARRIS International plc [ARRS] a Reliable Buy?
Shares of ARRIS International plc [ARRS], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.