Summary

Art Technology
Company Name Group Inc.
Ticker ARTG
Previous Close $4.08
Target Price $5.28

Company Profile
Details
Sector Technology
Internet
software &
Industry services
Index membership N/A
Full time employees 545

Business summary

Source:Yahoo Finance

Share performance
Previous close 4.08
52wks high 4.88
52wks low 1.95
Average Volume (3 month) 1,871,120
Average Volume (10 days) 2,198,220
50 days MAV 4.25
200 days MAV 4.14
Beta 1.33
EPS 0.13
Source:Yahoo Finance

Financials
Dividends
Company Industry
Dividend Yield NA 0.29
Dividend Yield - 5 Year Avg. 0 2.1
Dividend 5 Year Growth Rate -- 8.18

Payout Ratio(TTM) 0 42.5

Growth Rates
Company Industry
Sales (MRQ) vs Qtr. 1 Yr. Ago 9.4 -2.33
Sales (TTM) vs TTM 1 Yr. Ago 8.95 -2.51
Sales - 5 Yr. Growth Rate 20.98 8.75

EPS (MRQ) vs Qtr. 1 Yr. Ago 44.76 -6.1

EPS (TTM) vs TTM 1 Yr. Ago 339.97 --
EPS - 5 Yr. Growth Rate -- 2.68

Capital Spending - 5 Yr. Growth Rate 47.28 34.51

Financial Strength
Company Industry
Quick Ratio (MRQ) 1.86 2.18
Current Ratio (MRQ) 1.86 2.31
LT Debt to Equity (MRQ) 0 13.29
Total Debt to Equity (MRQ) 0 18.44
Interest Coverage (TTM) -- 1.97
Profitability Ratios
Company Industry
Gross Margin (TTM) 66.04 27.17
Gross Margin - 5 Yr. Avg. 65.04 58.35

EBITD Margin (TTM) 14.47 --

EBITD - 5 Yr. Avg 9.1 26.17

Operating Margin (TTM) 9.34 8.53

Operating Margin - 5 Yr. Avg. 3.87 22.6

Pre-Tax Margin (TTM) 9.37 8.46

Pre-Tax Margin - 5 Yr. Avg. 4.64 23.56

Net Profit Margin (TTM) 9.36 6.13

Net Profit Margin - 5 Yr. Avg. 4.72 14.86

Effective Tax Rate (TTM) 0.07 12.86

Effecitve Tax Rate - 5 Yr. Avg. -1.76 32.05
Efficiency
Company Industry
Revenue/Employee (TTM) 326,149 9,045,513
Net Income/Employee (TTM) 30,538 231,958

Receivable Turnover (TTM) 4.68 3.03

Inventory Turnover (TTM) -- 4.63
Asset Turnover (TTM) 0.89 0.35
Management Effectiveness
Company Industry
Return on Assets (TTM) 8.34 4.39
Return on Assets - 5 Yr. Avg. 4.17 11.17
Return on Investment (TTM) 12.22 6.28
Return on Investment - 5 Yr. Avg. 6.34 16.37

Return on Equity (TTM) 13.61 8.05

Return on Equity - 5 Yr. Avg. 6.89 18.32
Source: Thomson Financials

Valuations
Company Industry
P/E Ratio (TTM) 32.48 19.72
P/E High - Last 5 Yrs. NA 9.15
P/E Low - Last 5 Yrs. NA 2.52
Price to Sales (TTM) 3.48 1.47
Price to Book (MRQ) 3.83 3.87
Price to Tangible Book (MRQ) 9.42 11.17
Price to Cash Flow (TTM) 23.99 7.74
Price to Free Cash Flow (TTM) 25.07 40.29
Source: Thomson Financials

Analyst estimates
Current Estimates Qtr. Ended Qtr. Ended
Mar. 2010 Jun. 2010
Consensus(Mean) 0.04 0.05
Highest Estimate 0.05 0.06
Lowest Estimate 0.04 0.05
Number of Analysts Surveyed 10 10
Year-Ago Reported Earnings ... ...
Median Estimate 0.04 0.05
Standard Deviation 0.00 0.00
Report Date * 4/26/2010 ...
Source: WSJ

Technical analysis

Source:

Insider activities
NET SHARE PURCHASE ACTIVITY

Insider Purchases - Last 6 Months

Shares Trans
Purchases N/A 0
Sales 343,368 8
Net Shares Purchased (343,368) 8
(Sold)
Total Insider Shares Held 6.58M N/A
% Net Shares Purchased (0) N/A
(Sold)

Net Institutional Purchases - Prior Qtr to

Latest Qtr
Shares
Net Shares Purchased (Sold) (12,123,800)
% Change in Institutional Shares Held -18.3%
Source:Thomson Financials
Sector S&P 500
0.05 1.59
1.05 2.32
8.7 -6.39

18.51 26.08

Sector S&P 500

1.68 12.4
 -3.44 -4.69
9.21 6.9

182.76 109.56
-- --
-0.44 8.26

15.61 5.72

Sector S&P 500

1.47 0.82
1.74 0.96
27.47 123.54
43.43 176.97
-0.06 11.01

Sector S&P 500

11.37 30.44
33.91 27.97

-- --
21.86 13.79

0.38 --
11.23 17.16

0.24 12.65
9.02 16.8

-1.07 9.94
6.17 12.23

35.35 12.91
21.67 26.25

Sector S&P 500

3,501,563 261,955
(222,239) 33,420

2.11 7.77
2.8 4.89
0.37 0.44

Sector S&P 500

0.80 4.51
5.59 4.86
 1.36 5.93
8.36 6.26

1.11 13.24
9.57 12.95

Sector S&P 500

8.9 16.19
2.48 16.55
0.5 4.4
0.6 2.1
1.85 2.72
2.55 5.84
4.88 7.52
14.45 18.46

Fiscal Year Fiscal Year

Dec. 2010 Dec. 2011
0.22 0.25
0.24 0.27
0.21 0.24
11 9
... ...
0.21 0.25
0.01 0.01
Valuations
Company Industry Sector S&P 500
P/E Ratio (TTM) 32.48 19.72 8.9 16.19
P/E High - Last 5 Yrs. NA 9.15 2.48 16.55
P/E Low - Last 5 Yrs. NA 2.52 0.5 4.4
Price to Sales (TTM) 3.48 1.47 0.6 2.1
Price to Book (MRQ) 3.83 3.87 1.85 2.72
Price to Tangible Book (MRQ) 9.42 11.17 2.55 5.84
Price to Cash Flow (TTM) 23.99 7.74 4.88 7.52
Price to Free Cash Flow (TTM) 25.07 40.29 14.45 18.46

Market Relative
Company Industry Sector S&P 500
P/E Ratio (TTM) 200.6% 121.8% 55.0% 100.0%
Price to Sales (TTM) 165.7% 70.0% 28.6% 100.0%
Price to Book (MRQ) 140.8% 142.3% 68.0% 100.0%
Price to Tangible Book (MRQ) 161.3% 191.3% 43.7% 100.0%
Price to Cash Flow (TTM) 319.0% 102.9% 64.9% 100.0%
Price to Free Cash Flow (TTM) 135.8% 218.3% 78.3% 100.0%
Average 187.2% 141.1% 56.4% 100.0%

Industry Relative
Company Industry Sector S&P 500
P/E Ratio (TTM) 164.7% 100.0% 45.1% 82.1%
Price to Sales (TTM) 236.7% 100.0% 40.8% 142.9%
Price to Book (MRQ) 99.0% 100.0% 47.8% 70.3%
Price to Tangible Book (MRQ) 84.3% 100.0% 22.8% 52.3%
Price to Cash Flow (TTM) 309.9% 100.0% 63.0% 97.2%
Price to Free Cash Flow (TTM) 62.2% 100.0% 35.9% 45.8%
Average 159.5% 100.0% 42.6% 81.7%

Sector Relative
Company Industry Sector S&P 500
P/E Ratio (TTM) 364.9% 221.6% 100.0% 181.9%
Price to Sales (TTM) 580.0% 245.0% 100.0% 350.0%
Price to Book (MRQ) 207.0% 209.2% 100.0% 147.0%
Price to Tangible Book (MRQ) 369.4% 438.0% 100.0% 229.0%
Price to Cash Flow (TTM) 491.6% 158.6% 100.0% 154.1%
Price to Free Cash Flow (TTM) 173.5% 278.8% 100.0% 127.8%
Average 364.3% 265.9% 100.0% 201.6%

Justified Relative
Company Industry Sector S&P 500
P/E Ratio trailing #DIV/0! 12.9% 2.4% 89.9%
Price to Sales #DIV/0! 15.6% -15.0% 117.3%
Price to Book #DIV/0! 32.8% 45.0% 125.2%
Average #DIV/0! 20.4% 10.8% 110.8%

Justified Ratios
Company Industry Sector S&P 500
P/E Ratio trailing 0.00 153.34 373.55 18.01
Price to Sales 0.00 9.40 -4.00 1.79
Price to Book 0.00 11.80 4.11 2.17

Supplimentary Info
Cost of equity 13.95% 4.92% 0.95% 11.38%
Beta 1.33 N/A N/A N/A
D/Y #VALUE! 0.29% 0.05% 1.59%
ROE 13.61% 8.05% 1.11% 13.24%
Payout ratio 0.00% 42.50% 18.51% 26.08%
g 13.61% 4.63% 0.90% 9.79%
Net Profit Margin (TTM) 9.36 6.13 -1.07 9.94
10yrs T-bill 3.595%

Historical

Price/Earnings TTM Highest Lowest Mean

Stock's 30.6 64.5 25.5 38.62
S&P 500 11.8 23.4 10.9 18.14
Price/Book
Stock's 3.7 10.8 2.3 4.95
S&P 500 2.2 3.3 1.7 2.70
Price/Sales
Stock's 2.9 13.3 0.9 3.31
S&P 500 0.9 1.6 0.9 1.41
Price/Cash Flow
Stock's 17.5 119.1 7.6 42.78
S&P 500 3.7 12.2 6.8 10.50
Source: Morningstar

Price calculation matrix (PE)

EPS estimate 2010
High Mean Low
P/E High 15.48 14.19 13.55
P/E Mean 9.27 8.50 8.11
P/E Low 6.12 5.61 5.36

Price calculation matrix (PS)

RPS estimate 2010
High Mean Low
P/S High 21.05 20.89 20.63
P/S Mean 5.24 5.20 5.13
P/S Low 1.42 1.41 1.40

Analyst estimates
Current EPS Estimates Qtr. Ended Qtr. Ended Fiscal Year Fiscal Year
Mar. 2010 Jun. 2010 Dec. 2010 Dec. 2011
Consensus(Mean) 0.04 0.05 0.22 0.25
Highest Estimate 0.05 0.06 0.24 0.27
Lowest Estimate 0.04 0.05 0.21 0.24
Number of Analysts Surveyed 10 10 11 9
Year-Ago Reported Earnings ... ... ... ...
Median Estimate 0.04 0.05 0.21 0.25
Standard Deviation 0.00 0.00 0.01 0.01
Report Date * 4/26/2010 ...

Current RPS Estimates Qtr. Ended Qtr. Ended Fiscal Year Fiscal Year
Mar. 2010 Jun. 2010 Dec. 2010 Dec. 2011
Consensus(Mean) 0.35 0.39 1.57 1.76
Highest Estimate 0.35 0.40 1.58 1.80
Lowest Estimate 0.34 0.38 1.55 1.74
Number of Analysts Surveyed 9 9 9 9
Number of share outstanding 127.46
Source: WSJ

Impact of new share insuance

Number of share outstanding
before new share issuance (in
thousand) 127,428
Number of new share issued (in
thousand) 25,000
Dilution 19.6%
Closing price before the
announcement (1/31/10) 4.48
Closing price after the
announcement (2/1/10) 4.04
Gap -9.8%
Dilution effect on closing on
1/31/10 3.60
Offering price of new share 3.50
 Current
Median percentile 2000 2001 2002 2003 2004
34.7 31.3% --- --- --- 25.5 ---
18.6 2.0% --- 23.4 19.7 21.1 19

4.75 21.3% 10.8 5.6 5.5 5.3 3.8

2.8 12.5% --- 3.3 2.6 3.1 3

2 70.8% 13.3 1.7 0.9 1.6 1.7

1.5 0.0% --- 1.5 1.3 1.6 1.6

28.15 16.0% 119.1 --- --- --- ---

11.1 #VALUE! --- 12.2 9.6 11.9 11.4
2005 2006 2007 2008 2009
39.2 29.2 --- 64.5 34.7
17.3 16.8 16.5 10.9 18.6

4.3 2.5 5.2 2.3 4.2

2.8 2.9 2.7 1.7 2.2

2.3 2.6 4 1.6 3.4

1.5 1.6 1.5 0.9 1.2

53.8 35.3 21 7.6 19.9

10.8 11.1 11.6 6.8 9.1