ARBOR REALTY TRUST INC (ABR) Stock Fundamental Analysis
NYSE:ABR - New York Stock Exchange, Inc. - US0389231087 - REIT - Currency: USD
ABR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of ABR get a neutral evaluation. Nothing too spectacular is happening here. ABR has a bad growth rate and is valued cheaply. ABR also has an excellent dividend rating. This makes ABR very considerable 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.
ABR had positive earnings in each of the past 5 years.
ABR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABR has a Return On Assets of 1.65%. This is amongst the best in the industry. ABR outperforms 87.69% of its industry peers.
ABR has a better Return On Equity (7.38%) than 76.92% of its industry peers.
ABR has a better Return On Invested Capital (1.69%) than 83.08% of its industry peers.
ABR had an Average Return On Invested Capital over the past 3 years of 1.81%. This is in line with the industry average of 1.71%.
| 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
The Profit Margin of ABR (15.65%) is better than 70.77% of its industry peers.
In the last couple of years the Profit Margin of ABR has declined.
Looking at the Operating Margin, with a value of 20.20%, ABR is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
In the last couple of years the Operating Margin of ABR has declined.
The Gross Margin of ABR (43.60%) is better than 83.08% of its industry peers.
In the last couple of years the Gross Margin of ABR has declined.
| 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
ABR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ABR has been increased compared to 1 year ago.
Compared to 5 years ago, ABR has more shares outstanding
ABR has a better debt/assets ratio than last year.
2.2 Solvency
ABR has an Altman-Z score of 0.35. This is a bad value and indicates that ABR is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.35, ABR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of ABR is 21.77, which is on the high side as it means it would take ABR, 21.77 years of fcf income to pay off all of its debts.
ABR has a better Debt to FCF ratio (21.77) than 93.85% of its industry peers.
A Debt/Equity ratio of 3.30 is on the high side and indicates that ABR has dependencies on debt financing.
The Debt to Equity ratio of ABR (3.30) is better than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 21.77 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.24
WACC7%
2.3 Liquidity
A Current Ratio of 115.47 indicates that ABR has no problem at all paying its short term obligations.
The Current ratio of ABR (115.47) is better than 100.00% of its industry peers.
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.
ABR's Quick ratio of 115.47 is amongst the best of the industry. ABR outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 115.47 | ||
| Quick Ratio | 115.47 |
3. Growth
3.1 Past
The earnings per share for ABR have decreased strongly by -22.22% in the last year.
ABR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.79% yearly.
Looking at the last year, ABR shows a very negative growth in Revenue. The Revenue has decreased by -12.16% in the last year.
The Revenue has been growing by 21.64% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-22.22%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-21.57%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-20%
3.2 Future
ABR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.65% yearly.
ABR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.77% yearly.
EPS Next Y-35.48%
EPS Next 2Y-13.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.54%
Revenue Next 2Y-2.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 6.14 indicates a rather cheap valuation of ABR.
Based on the Price/Earnings ratio, ABR is valued cheaper than 86.15% of the companies in the same industry.
ABR is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.51, the valuation of ABR can be described as reasonable.
ABR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ABR to the average of the S&P500 Index (20.86), we can say ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
ABR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABR is cheaper than 89.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABR indicates a rather cheap valuation: ABR is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.51 | ||
| EV/EBITDA | 38.94 |
4.3 Compensation for Growth
The decent profitability rating of ABR may justify a higher PE ratio.
ABR's earnings are expected to decrease with -13.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-13.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.40%, ABR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 14.23, ABR pays a bit more dividend than its industry peers.
ABR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.4% |
5.2 History
On average, the dividend of ABR grows each year by 12.05%, which is quite nice.
ABR has been paying a dividend for at least 10 years, so it has 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-13.65%
EPS Next 3YN/A
10.74
-0.34 (-3.07%)
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-0.16%
Ins Owners2.28%
Ins Owner Change1.41%
Market Cap2.06B
Analysts48.33
Price Target13.18 (22.72%)
Short Float %30.49%
Short Ratio13.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.4% |
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)-0.64%
PT rev (3m)-11.17%
EPS NQ rev (1m)8%
EPS NQ rev (3m)-27.03%
EPS NY rev (1m)5.08%
EPS NY rev (3m)-27.01%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-11.53%
Revenue NY rev (1m)4.71%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 9.51 | ||
| P/S | 1.45 | ||
| P/FCF | 4.51 | ||
| P/OCF | 4.47 | ||
| P/B | 0.68 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 38.94 |
EPS(TTM)1.75
EY16.29%
EPS(NY)1.13
Fwd EY10.51%
FCF(TTM)2.38
FCFY22.19%
OCF(TTM)2.4
OCFY22.36%
SpS7.42
BVpS15.74
TBVpS15.28
PEG (NY)N/A
PEG (5Y)0.9
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 | 0.35 |
F-Score7
WACC7%
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)-22.22%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-21.57%
EPS Next Y-35.48%
EPS Next 2Y-13.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-20%
Revenue Next Year-10.54%
Revenue Next 2Y-2.77%
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