The Arena Group Holdings, Inc. (AREN) is a Internet Content & Information company in the Communication Services sector, currently trading at $1.89. It has a SharesGrow Score of 74/100, indicating a above average investment profile with 4 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of AREN = $9.34 (+394.2% from the current price, the stock appears undervalued). Analyst consensus target is AREN = $10 (+429.1% upside).
Valuation: AREN trades at a trailing Price-to-Earnings (P/E) of 0.7 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.07.
Financials: revenue is $135M, -10.3%/yr average growth. Net income is $125M, growing at +53.4%/yr. Net profit margin is 92.6% (strong). Gross margin is 50.7% (+10.9 pp trend).
Balance sheet: total debt is $100M with negative equity of -$5M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 2.1 (strong liquidity). Debt-to-assets is 88.9%. Total assets: $113M.
Analyst outlook: 2 / 2 analysts rate AREN as buy (100%) — strong consensus.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 58/100 (Partial), Past 25/100 (Fail), Health 75/100 (Pass), Moat 58/100 (Partial), Future 100/100 (Pass), Income 100/100 (Pass).
