Concentration RisksThe concentration of ARX's revenue base is viewed as somewhat chunkier and more concentrated due to dynamics related to its small commercial insurance policies.
Growth RisksThe key near-term risk is management potentially accelerating its diversification strategy, which could lead to growth in its higher-margin segments coming in below forecast.
Valuation ConcernsDue to concentration issues and a lack of near-term visibility on adjusted free cash flow, a lower valuation multiple is considered warranted.