American Realty Investors Inc. Common Stock (ARL)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power bought at a discount to intrinsic value. American Realty Investors owns multifamily and commercial real estate across the Southern United States, and its filed results are uneven. Revenue has been range-bound: $50.5M in fiscal year 2023, the year ended 2023-12-31; $47.3M in fiscal year 2024, the year ended 2024-12-31; and $50.0M in fiscal year 2025, the year ended 2025-12-31. The company lost $14.7M in fiscal year 2024, then earned $15.7M, or $0.97 per diluted share, in fiscal year 2025, which fits FairStock's TURNAROUND category: returned to profit after a loss within the last three years. But the latest two quarters show renewed weakness. In fiscal Q1 2026, the quarter ended 2026-03-31, net loss was $551,000, or $0.03 per diluted share. In fiscal Q2 2026, the quarter ended 2026-06-30, net loss was $1.0M, or $0.06 per diluted share. Much of fiscal year 2025's profit came from fiscal Q4 2025, the quarter ended 2025-12-31, when net income was $9.8M, or $0.60 per diluted share. A moat in real estate comes from location and pricing power; the filed numbers show no consistent revenue or margin expansion to confirm one. At the 2026-10-13 close of $17.51, FairStock calculates P/B of 0.46, a Graham Number of $20.96, and a 16.46% margin of safety. That is asset-based attraction. But the same data show P/E 34.33, FCF yield 1.1%, ROE 1.23%, ROCE -0.50%, Piotroski 2/9, and Altman Z-Score 1.80. Debt is moderate at D/E 0.27, yet returns and cash generation are poor. Without durable earnings, the discount may reflect real risk rather than opportunity.

In plain English: American Realty Investors owns and rents apartments and commercial buildings, mostly in the Southern United States. The business is uneven: it lost money in fiscal year 2024, made a profit in fiscal year 2025, but lost money again in the first two quarters of fiscal year 2026. At the 2026-10-13 close of $17.51, the stock looks cheaper than the accounting value of its assets, but profits and cash flow are weak, so it is not clearly cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer