Array Technologies: An Interesting Business That Could Be A Value Trap

The Sharpe Quest190 FollowersFollow5ShareSavePlay(12min)CommentsSummaryArray Technologies faces persistent share price weakness, despite strong sector performance and a critical role in utility-scale solar projects.Post-acquisition challenges, notably STI Norland’s negative gross profit and a $29.5M inventory charge, have materially pressured ARRY’s margins and investor sentiment.Adjusted for preferred stock, ARRY trades at a 9x EV/EBITDA FWD multiple; margin normalization and reduced reliance on 45X credits are essential for re-rating.I assign a Hold rating, pending several quarters of sustained margin improvement from core operations, not 45X credits or accounting timing effects. very good/E+ via Getty Images The solar sector is going up; ARRY is falling These are not good times for Array Technologies, Inc. (ARRY) since its latest earnings release, and week after week, this downward drift does not seem toThis article was written byThe Sharpe Quest190 FollowersFollowWith a degree in Finance and Accounting and previous experience in financial advisory, I use The Sharpe Quest to share my path as an independent investor and market analyst. My approach mixes long-term conviction holdings with tactical sector rotations, driven by the belief that investing isn’t about being right, it’s about making money. I focus on undercovered opportunities and momentum-driven sectors. All views are my own and not financial advice.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.