American Realty Investors (ARL) AI Stock Analysis

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American Realty Investors

(NYSE:ARL)

Select Model

Rating:57Neutral

Price Target:$22.00▲(2.23% Upside)

Action:reiterated

Date:11/05/26

The score is held back primarily by weak cash flow conversion/negative free cash flow and weak underlying operating profitability despite improved reported revenue and net income. Technicals are supportive with a strong uptrend, but overbought indicators add risk. A high P/E with no dividend yield provided further limits the overall score.

Positive Factors

Recurring real-estate income modelOwnership of income-producing apartments and offices provides a recurring rental base supported by tenant lease agreements. This business model can provide durable revenue visibility and operating continuity, while property ownership preserves potential long-term asset value and leasing upside.

Negative Factors

Weak cash conversion and negative free cash flowNegative free cash flow indicates that reported earnings are not translating into cash after investment needs, while operating cash flow covers less than half of net income. Persistent weak conversion could constrain internally funded growth and increase reliance on asset sales or financing.

American Realty Investors (ARL) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $346.62M
Dividend Yield: ―
Average Volume (3M): 4,329
Price to Earnings (P/E): 41.7
Beta (1Y): 0.62
Revenue Growth: 6.77%
EPS Growth: ―
Country: US
Employees: 0
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Services

American Realty Investors Business Overview & Revenue Model

Company Description

American Realty Investors, Inc. (ARL), along with its affiliated entities, focuses on the acquisition, development, and ownership of both residential apartment complexes and various commercial real estate assets. Its operational footprint extends acr...

How the Company Makes Money

ARL primarily makes money by owning income-producing real estate and collecting contractual and recurring payments from tenants. Key revenue and earnings drivers include: (1) Rental and leasing income: The largest recurring source is rent paid by apa...

American Realty Investors Financial Statement Overview

Summary

Mixed fundamentals. Revenue rebounded sharply and net income is positive, but operating profitability looks weak (negative gross profit and EBIT in recent periods) and results have been volatile. The balance sheet is a strength with no reported debt in TTM, but cash generation is a major concern with negative free cash flow and weak cash conversion versus net income.

Income Statement

52Neutral

Balance Sheet

78Positive

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.05M	50.01M	47.32M	50.50M	37.54M	42.04M
Gross Profit	-20.24M	-12.55M	20.25M	22.60M	19.20M	21.18M
EBITDA	35.33M	40.66M	3.33M	30.78M	604.07M	43.83M
Net Income	8.35M	15.70M	-14.70M	3.97M	373.35M	3.35M
Balance Sheet
Total Assets	1.09B	1.10B	1.03B	1.02B	1.20B	770.57M
Cash, Cash Equivalents and Short-Term Investments	84.29M	89.14M	99.72M	127.19M	233.23M	66.75M
Total Debt	218.03M	214.37M	185.40M	182.68M	505.23M	556.24M
Total Liabilities	276.48M	277.60M	230.53M	206.97M	385.31M	433.72M
Stockholders Equity	618.65M	617.40M	601.82M	617.00M	613.49M	240.14M
Cash Flow
Free Cash Flow	-8.30M	-5.55M	1.09M	-31.05M	-45.39M	-135.24M
Operating Cash Flow	3.25M	-5.55M	1.09M	-31.05M	-45.39M	-11.52M
Investing Cash Flow	-12.73M	-33.05M	-41.34M	26.81M	307.36M	100.82M
Financing Cash Flow	-2.64M	27.55M	1.66M	-139.02M	-112.38M	-103.58M

American Realty Investors Technical Analysis

Technical Analysis SentimentPositive

Last Price21.52

Price Trends

50DMA16.36Positive

100DMA16.55Positive

200DMA16.04Positive

Market Momentum

MACD0.91Negative

RSI71.98Negative

STOCH99.17Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARL, the sentiment is Positive. The current price of 21.52 is above the 20-day moving average (MA) of 17.27, above the 50-day MA of 16.36, and above the 200-day MA of 16.04, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 71.98 is Negative, neither overbought nor oversold. The STOCH value of 99.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARL.

American Realty Investors Risk Analysis

American Realty Investors disclosed 20 risk factors in its most recent earnings report. American Realty Investors reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

American Realty Investors Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

ARL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AMBR	58Neutral	$171.91M	-37.73	-0.14%	―	―	―
ARL	57Neutral	$346.62M	41.74	1.36%	―	6.77%	―
AXR	51Neutral	$113.42M	19.17	4.21%	―	-15.29%	-56.15%

* Real Estate Sector Average

Performance Comparison

ARL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ARL	American Realty Investors, Inc.	21.52	4.97	30.03%
AXR	AMREP Corporation	21.12	0.17	0.81%
AMBR	Amber International Holding Limited	1.66	-0.08	-4.60%
AEI	Alset Ehome International Inc.	0.50	-1.92	-79.34%
OZ	Belpointe Prep Llc	32.62	-30.38	-48.22%
MRNO	Murano Global Investments Plc	0.19	-2.17	-91.85%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 05, 2026

American Realty Investors AI Stock Analysis