Recent News
On January 12, 2026 the company executed a privately negotiated purchase of 70,023 shares of Transcontinental Realty Investors, Inc., a $3.89 million transaction that increased its direct stake in the related company. A sector-focused research piece published within the past quarter highlighted ARL’s sizable developed and undeveloped land position and noted governance and external-management factors that compress the market’s valuation of the company.
Technical Analysis
ADX at 26.09 indicates a strong trend environment; directional indicators show DI- at 28.96 and rising while DI+ sits at 27.65 and declining, a configuration that signals a bearish directional bias relative to the current valuation and supports the introduction’s downside view.
MACD at -0.47 and declining, with the MACD below its signal line (-0.26), confirms bearish momentum; absent a MACD cross above the signal line, momentum signals remain negative for the near term.
MRO reads -10.66 and decreasing, which implies the market price sits below the WMDST target and therefore carries mean-reversion upside potential; that potential, however, relies on momentum improvement to translate into price gains.
RSI at 46.06 and decreasing shows mild downside pressure without an oversold reading, reinforcing a neutral-to-negative short-term bias unless RSI reverses above 50.
Price sits below the 12‑day EMA ($15.75), 20‑day average ($16.11), 26‑day EMA ($16.31) and 50‑day average ($16.80) and below the Ichimoku Tenkan and Kijun levels (Tenkan $16.02, Kijun $16.20); this alignment positions moving averages as overhead resistance in the coming weeks.
Bollinger bands place the lower 1x band at $14.99 and the upper 1x band at $17.22; the close at $15.19 trades near the lower band, suggesting limited immediate downside room but not a confirmed reversal signal.
Intraday and short‑term volume show elevated activity: current volume (18,464) exceeds the 10‑day average (4,384) and 50‑day average (3,015), indicating higher liquidity on recent moves and greater sensitivity to momentum-driven price swings.
Fundamental Analysis
Total revenue stood at $12,835,000 with operating income negative at -$1,573,000 and net income of $129,000; EBITDA measured $6,346,000 and free cash flow registered $7,973,000, underpinning modest cash generation despite operating losses.
WMDST values the stock as fair-valued. Book value sits at $37.52 per share with shares outstanding of 16,152,043 and market capitalization of $251,392,012; enterprise value equals $408,423,012, producing an enterprise multiple of 64.36x (below the industry peer mean of 78.40x and below the industry peer median of 52.41x).
Margins and returns: EBIT margin equals 26.47% but declined QoQ by -2.65% and contracted YoY by -115.73%; operating margin equals -12.26% with a QoQ improvement of 47.11% but a YoY contraction of -92.72%. Return on equity equals 0.021% and return on assets equals 0.012%; both read very low and show steep YoY declines.
Liquidity and leverage: current ratio measures 9.11 (well above the industry peer mean of 2.00), cash and short‑term investments total $69,997,000, and cash equals $11,962,000; total debt equals $227,028,000 and debt-to-equity stands at 37.47% with debt-to-EBITDA at 35.77x, indicating leverage levels that strain coverage metrics despite ample short-term liquidity.
Valuation signals: price-to-book at 0.41x sits well below the industry peer mean of 3.01x and median of 3.63x, reflecting a material book-value discount; price-to-sales at 19.59x sits above the industry peer mean of 12.83x. Free cash flow yield equals 3.17%, above the industry peer mean of 1.66%, offering a modest income cushion relative to peers.
Operational efficiency: asset turnover equals 1.18% with a small QoQ uptick of 3.07% and YoY improvement of 4.81%; cash conversion cycle is -673 days (notably below the industry peer mean of +12 days), reflecting the company’s receivables/payables dynamics and large payables balance of $47,328,000.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-12-17 |
| NEXT REPORT DATE: | 2026-03-18 |
| CASH FLOW | Begin Period Cash Flow | $ 34.2 M |
| Operating Cash Flow | $ 8.0 M | |
| Capital Expenditures | $ -14.78 M | |
| Change In Working Capital | $ 5.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -4.51 M | |
| End Period Cash Flow | $ 29.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 12.8 M | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | $ 7.5 M | |
| Depreciation | $ 2.9 M | |
| Depreciation and Amortization | $ 2.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 14.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 5.3 M | |
| EBITDA | $ 6.3 M | |
| EBIT | $ 3.4 M | |
| Operating Income | $ -1.57 M | |
| Interest Income | $ 4.1 M | |
| Interest Expense | $ 1.7 M | |
| Net Interest Income | $ 2.4 M | |
| Income Before Tax | $ 1.7 M | |
| Tax Provision | $ 1.4 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 129.0 K | |
| Net Income From Continuing Operations | $ 320.0 K | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | — | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.1 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 607.8 M | |
| Total Current Assets | $ 462.8 M | |
| Cash and Short-Term Investments | $ 70.0 M | |
| Cash | $ 12.0 M | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 9.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 47.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 50.8 M | |
| Net Debt | $ 215.1 M | |
| Total Debt | $ 227.0 M | |
| Total Liabilities | $ 287.6 M | |
| EQUITY | ||
| Total Equity | $ 606.0 M | |
| Retained Earnings | $ 544.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 37.52 | |
| Shares Outstanding | 16.152 M | |
| Revenue Per-Share | $ 0.79 | |
| VALUATION | Market Capitalization | $ 251.4 M |
| Enterprise Value | $ 408.4 M | |
| Enterprise Multiple | 64.359 | |
| Enterprise Multiple QoQ | 11.521 % | |
| Enterprise Multiple YoY | -439.879 % | |
| Enterprise Multiple IPRWA | high: 230.411 mean: 78.396 ARL: 64.359 median: 52.412 low: -130.519 |
|
| EV/R | 31.821 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.809 | |
| Asset To Liability | 3.81 | |
| Debt To Capital | 0.273 | |
| Debt To Assets | 0.207 | |
| Debt To Assets QoQ | 4.195 % | |
| Debt To Assets YoY | 17.506 % | |
| Debt To Assets IPRWA | high: 1.393 mean: 0.239 ARL: 0.207 median: 0.178 low: 0.0 |
|
| Debt To Equity | 0.375 | |
| Debt To Equity QoQ | 5.13 % | |
| Debt To Equity YoY | 22.367 % | |
| Debt To Equity IPRWA | high: 6.25 mean: 0.721 median: 0.398 ARL: 0.375 low: -2.271 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.415 | |
| Price To Book QoQ | 11.267 % | |
| Price To Book YoY | -2.269 % | |
| Price To Book IPRWA | high: 9.572 median: 3.633 mean: 3.012 ARL: 0.415 low: -2.525 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 19.586 | |
| Price To Sales QoQ | 5.415 % | |
| Price To Sales YoY | -10.796 % | |
| Price To Sales IPRWA | high: 42.124 ARL: 19.586 mean: 12.825 median: 4.502 low: 0.022 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | — | |
| Forward PE/G | — | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.496 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.012 | |
| Asset Turnover Ratio QoQ | 3.067 % | |
| Asset Turnover Ratio YoY | 4.813 % | |
| Asset Turnover Ratio IPRWA | high: 0.542 mean: 0.19 median: 0.19 ARL: 0.012 low: 0.002 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -673.428 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 213.002 mean: 12.175 median: 4.173 low: -77.936 ARL: -673.428 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.031 | |
| CapEx To Revenue | -1.151 | |
| CapEx To Depreciation | -5.01 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 834.8 M | |
| Net Invested Capital | $ 833.0 M | |
| Invested Capital | $ 833.0 M | |
| Net Tangible Assets | $ 607.8 M | |
| Net Working Capital | $ 411.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.377 | |
| Current Ratio | 9.105 | |
| Current Ratio QoQ | 3.813 % | |
| Current Ratio YoY | 6.878 % | |
| Current Ratio IPRWA | ARL: 9.105 high: 8.427 mean: 2.004 median: 1.606 low: 0.464 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 35.775 | |
| Cost Of Debt | 0.603 % | |
| Interest Coverage Ratio | 2.009 | |
| Interest Coverage Ratio QoQ | 7.978 % | |
| Interest Coverage Ratio YoY | -121.833 % | |
| Interest Coverage Ratio IPRWA | high: 17.743 median: 5.0 mean: 4.88 ARL: 2.009 low: -14.849 |
|
| Operating Cash Flow Ratio | 0.025 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 673.428 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.896 % | |
| Revenue Growth | 5.551 % | |
| Revenue Growth QoQ | 338.468 % | |
| Revenue Growth YoY | -493.688 % | |
| Revenue Growth IPRWA | high: 71.703 % ARL: 5.551 % median: 4.165 % mean: 3.753 % low: -61.164 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 41.176 % | |
| Gross Margin QoQ | -10.986 % | |
| Gross Margin YoY | 3.494 % | |
| Gross Margin IPRWA | high: 100.0 % ARL: 41.176 % mean: 40.688 % median: 21.408 % low: -32.26 % |
|
| EBIT Margin | 26.467 % | |
| EBIT Margin QoQ | -2.648 % | |
| EBIT Margin YoY | -115.727 % | |
| EBIT Margin IPRWA | high: 72.188 % ARL: 26.467 % mean: 5.755 % median: 3.004 % low: -58.511 % |
|
| Return On Sales (ROS) | -12.256 % | |
| Return On Sales QoQ | 47.113 % | |
| Return On Sales YoY | -92.718 % | |
| Return On Sales IPRWA | high: 44.876 % mean: 5.082 % median: 3.004 % ARL: -12.256 % low: -51.265 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 8.0 M | |
| Free Cash Flow Yield | 3.172 % | |
| Free Cash Flow Yield QoQ | -345.701 % | |
| Free Cash Flow Yield YoY | -40.094 % | |
| Free Cash Flow Yield IPRWA | high: 19.492 % ARL: 3.172 % mean: 1.658 % median: 1.326 % low: -6.369 % |
|
| Free Cash Growth | -373.422 % | |
| Free Cash Growth QoQ | 515.832 % | |
| Free Cash Growth YoY | -86.582 % | |
| Free Cash Growth IPRWA | high: 718.027 % median: 147.517 % mean: 113.569 % ARL: -373.422 % low: -915.652 % |
|
| Free Cash To Net Income | 61.806 | |
| Cash Flow Margin | 9.949 % | |
| Cash Flow To Earnings | 9.899 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.012 % | |
| Return On Assets QoQ | -95.472 % | |
| Return On Assets YoY | -100.711 % | |
| Return On Assets IPRWA | high: 3.419 % mean: 0.623 % median: 0.617 % ARL: 0.012 % low: -1.694 % |
|
| Return On Capital Employed (ROCE) | 0.325 % | |
| Return On Equity (ROE) | 0.0 | |
| Return On Equity QoQ | -95.503 % | |
| Return On Equity YoY | -100.722 % | |
| Return On Equity IPRWA | high: 0.084 mean: 0.02 median: 0.011 ARL: 0.0 low: -0.027 |
|
| DuPont ROE | 0.021 % | |
| Return On Invested Capital (ROIC) | 0.322 % | |
| Return On Invested Capital QoQ | 1.258 % | |
| Return On Invested Capital YoY | -101.096 % | |
| Return On Invested Capital IPRWA | high: 6.799 % mean: 1.419 % median: 0.757 % ARL: 0.322 % low: -3.044 % |
|