ARBOR REALTY TRUST INC (ABR) Stock Fundamental Analysis
NYSE:ABR - New York Stock Exchange, Inc. - US0389231087 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to ABR. ABR was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ABR has only an average score on both its financial health and profitability. ABR is valued quite cheap, but it does not seem to be growing. Finally ABR also has an excellent dividend rating. With these ratings, ABR could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year ABR was profitable.
ABR had a positive operating cash flow in the past year.
In the past 5 years ABR has always been profitable.
ABR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 1.65%, ABR belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
With a decent Return On Equity value of 7.38%, ABR is doing good in the industry, outperforming 76.92% of the companies in the same industry.
ABR has a Return On Invested Capital of 1.69%. This is amongst the best in the industry. ABR outperforms 83.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABR is in line with the industry average of 1.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 7.38% | ||
| ROIC | 1.69% |
ROA(3y)1.81%
ROA(5y)1.93%
ROE(3y)9.22%
ROE(5y)10.59%
ROIC(3y)1.81%
ROIC(5y)1.96%
1.3 Margins
ABR has a Profit Margin of 15.65%. This is in the better half of the industry: ABR outperforms 70.77% of its industry peers.
In the last couple of years the Profit Margin of ABR has declined.
ABR has a better Operating Margin (20.20%) than 70.77% of its industry peers.
In the last couple of years the Operating Margin of ABR has declined.
With an excellent Gross Margin value of 43.60%, ABR belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
ABR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.2% | ||
| PM (TTM) | 15.65% | ||
| GM | 43.6% |
OM growth 3Y-25.42%
OM growth 5Y-8.42%
PM growth 3Y-26.69%
PM growth 5Y-7.09%
GM growth 3Y-15.96%
GM growth 5Y-7.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ABR is destroying value.
ABR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABR has more shares outstanding
The debt/assets ratio for ABR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.32, we must say that ABR is in the distress zone and has some risk of bankruptcy.
ABR has a better Altman-Z score (0.32) than 84.62% of its industry peers.
ABR has a debt to FCF ratio of 21.77. This is a negative value and a sign of low solvency as ABR would need 21.77 years to pay back of all of its debts.
The Debt to FCF ratio of ABR (21.77) is better than 93.85% of its industry peers.
ABR has a Debt/Equity ratio of 3.30. This is a high value indicating a heavy dependency on external financing.
ABR has a Debt to Equity ratio of 3.30. This is in the better half of the industry: ABR outperforms 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 21.77 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.24
WACC6.99%
2.3 Liquidity
A Current Ratio of 115.47 indicates that ABR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 115.47, ABR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ABR has a Quick Ratio of 115.47. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ABR (115.47) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 115.47 | ||
| Quick Ratio | 115.47 |
3. Growth
3.1 Past
ABR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.71%.
The Earnings Per Share has been growing slightly by 6.79% on average over the past years.
ABR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.16%.
ABR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.64% yearly.
EPS 1Y (TTM)-25.71%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-40.43%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-27.19%
3.2 Future
The Earnings Per Share is expected to decrease by -19.78% on average over the next years. This is quite bad
The Revenue is expected to decrease by -2.38% on average over the next years.
EPS Next Y-32.86%
EPS Next 2Y-19.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.55%
Revenue Next 2Y-2.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.98, the valuation of ABR can be described as very cheap.
Based on the Price/Earnings ratio, ABR is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.91. ABR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.28, the valuation of ABR can be described as reasonable.
ABR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABR is cheaper than 63.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. ABR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
89.23% of the companies in the same industry are more expensive than ABR, based on the Enterprise Value to EBITDA ratio.
93.85% of the companies in the same industry are more expensive than ABR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.91 | ||
| EV/EBITDA | 37.55 |
4.3 Compensation for Growth
ABR has a very decent profitability rating, which may justify a higher PE ratio.
ABR's earnings are expected to decrease with -19.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y-19.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ABR has a Yearly Dividend Yield of 14.67%, which is a nice return.
The stock price of ABR dropped by -25.67% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ABR's Dividend Yield is a higher than the industry average which is at 13.68.
Compared to an average S&P500 Dividend Yield of 2.36, ABR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.67% |
5.2 History
On average, the dividend of ABR grows each year by 12.05%, which is quite nice.
ABR has paid a dividend for at least 10 years, which is a reliable track record.
ABR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
176.84% of the earnings are spent on dividend by ABR. This is not a sustainable payout ratio.
ABR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP176.84%
EPS Next 2Y-19.78%
EPS Next 3YN/A
NYSE:ABR (5/23/2025, 12:00:10 PM)
9.33
+0.41 (+4.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change-2.89%
Ins Owners2.28%
Ins Owner Change1.41%
Market Cap1.79B
Analysts47.27
Price Target12.07 (29.37%)
Short Float %31.1%
Short Ratio15.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.67% |
Yearly Dividend2.09
Dividend Growth(5Y)12.05%
DP176.84%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.21%
Min EPS beat(2)9.16%
Max EPS beat(2)11.25%
EPS beat(4)4
Avg EPS beat(4)10.5%
Min EPS beat(4)8.01%
Max EPS beat(4)13.59%
EPS beat(8)8
Avg EPS beat(8)19.74%
EPS beat(12)10
Avg EPS beat(12)15.15%
EPS beat(16)14
Avg EPS beat(16)17.97%
Revenue beat(2)1
Avg Revenue beat(2)0.97%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)4.78%
Revenue beat(4)2
Avg Revenue beat(4)3.2%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)14.05%
Revenue beat(8)6
Avg Revenue beat(8)5.45%
Revenue beat(12)10
Avg Revenue beat(12)81.28%
Revenue beat(16)14
Avg Revenue beat(16)118.31%
PT rev (1m)-8.97%
PT rev (3m)-18.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.03%
EPS NY rev (1m)4.05%
EPS NY rev (3m)-23.72%
Revenue NQ rev (1m)1.89%
Revenue NQ rev (3m)-9.86%
Revenue NY rev (1m)4.61%
Revenue NY rev (3m)-5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 8.28 | ||
| P/S | 1.26 | ||
| P/FCF | 3.91 | ||
| P/OCF | 3.88 | ||
| P/B | 0.59 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 37.55 |
EPS(TTM)1.56
EY16.72%
EPS(NY)1.13
Fwd EY12.07%
FCF(TTM)2.38
FCFY25.55%
OCF(TTM)2.4
OCFY25.74%
SpS7.42
BVpS15.74
TBVpS15.28
PEG (NY)N/A
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 7.38% | ||
| ROCE | 2.14% | ||
| ROIC | 1.69% | ||
| ROICexc | 1.75% | ||
| ROICexgc | 1.83% | ||
| OM | 20.2% | ||
| PM (TTM) | 15.65% | ||
| GM | 43.6% | ||
| FCFM | 32.1% |
ROA(3y)1.81%
ROA(5y)1.93%
ROE(3y)9.22%
ROE(5y)10.59%
ROIC(3y)1.81%
ROIC(5y)1.96%
ROICexc(3y)1.9%
ROICexc(5y)2.04%
ROICexgc(3y)1.97%
ROICexgc(5y)2.12%
ROCE(3y)2.29%
ROCE(5y)2.48%
ROICexcg growth 3Y-5.22%
ROICexcg growth 5Y-4.7%
ROICexc growth 3Y-5.83%
ROICexc growth 5Y-4.77%
OM growth 3Y-25.42%
OM growth 5Y-8.42%
PM growth 3Y-26.69%
PM growth 5Y-7.09%
GM growth 3Y-15.96%
GM growth 5Y-7.73%
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 21.77 | ||
| Debt/EBITDA | 33.49 | ||
| Cap/Depr | 36.33% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 0.37 | ||
| Cash Conversion | 154.99% | ||
| Profit Quality | 205.15% | ||
| Current Ratio | 115.47 | ||
| Quick Ratio | 115.47 | ||
| Altman-Z | 0.32 |
F-Score7
WACC6.99%
ROIC/WACC0.24
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)220.9%
Profit Quality(5y)152.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.71%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-40.43%
EPS Next Y-32.86%
EPS Next 2Y-19.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-27.19%
Revenue Next Year-12.55%
Revenue Next 2Y-2.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-28.84%
EBIT growth 3Y-9.53%
EBIT growth 5Y11.4%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.21%
FCF growth 3Y28.32%
FCF growth 5YN/A
OCF growth 1Y95.68%
OCF growth 3Y28.64%
OCF growth 5YN/A