ARBOR REALTY TRUST INC (ABR) Stock Fundamental Analysis
NYSE:ABR - New York Stock Exchange, Inc. - US0389231087 - REIT - Currency: USD
Taking everything into account, ABR scores 6 out of 10 in our fundamental rating. ABR was compared to 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. Finally ABR also has an excellent dividend rating. This makes ABR very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
ABR had positive earnings in the past year.
ABR had a positive operating cash flow in the past year.
Each year in the past 5 years ABR has been profitable.
ABR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ABR (1.65%) is better than 87.69% of its industry peers.
Looking at the Return On Equity, with a value of 7.38%, ABR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
ABR's Return On Invested Capital of 1.69% is amongst the best of the industry. ABR outperforms 83.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABR 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
ABR has a better Profit Margin (15.65%) than 69.23% of its industry peers.
In the last couple of years the Profit Margin of ABR has declined.
ABR's Operating Margin of 20.20% is fine compared to the rest of the industry. ABR outperforms 70.77% of its industry peers.
In the last couple of years the Operating Margin of ABR has declined.
Looking at the Gross Margin, with a value of 43.60%, ABR belongs to the top 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABR is destroying value.
Compared to 1 year ago, ABR has more shares outstanding
ABR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ABR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that ABR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.34, ABR belongs to the top 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.
With an excellent Debt to FCF ratio value of 21.77, ABR belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
A Debt/Equity ratio of 3.30 is on the high side and indicates that ABR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.30, ABR is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 21.77 | ||
| Altman-Z | 0.34 |
ROIC/WACC0.24
WACC6.98%
2.3 Liquidity
A Current Ratio of 115.47 indicates that ABR has no problem at all paying its short term obligations.
ABR has a Current ratio of 115.47. This is amongst the best in the industry. ABR outperforms 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.
With an excellent Quick ratio value of 115.47, ABR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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 -22.22%.
ABR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.79% yearly.
The Revenue for ABR has decreased by -12.16% in the past year. This is quite bad
Measured over the past years, ABR shows a very strong growth in Revenue. The Revenue has been growing by 21.64% on average per year.
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
Based on estimates for the next years, ABR will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.65% on average per year.
Based on estimates for the next years, ABR will show a decrease in Revenue. The Revenue will decrease by -4.20% on average per year.
EPS Next Y-35.48%
EPS Next 2Y-13.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16.4%
Revenue Next 2Y-4.2%
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
ABR is valuated cheaply with a Price/Earnings ratio of 6.45.
Compared to the rest of the industry, the Price/Earnings ratio of ABR indicates a rather cheap valuation: ABR is cheaper than 86.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ABR to the average of the S&P500 Index (28.79), we can say ABR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.00, the valuation of ABR can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ABR.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 10 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABR is valued cheaper than 89.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABR is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.67 | ||
| EV/EBITDA | 38.9 |
4.3 Compensation for Growth
ABR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ABR's earnings are expected to decrease with -13.65% in the coming years.
PEG (NY)N/A
PEG (5Y)0.95
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.
ABR's Dividend Yield is a higher than the industry average which is at 14.56.
ABR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.4% |
5.2 History
The dividend of ABR is nicely growing with an annual growth rate of 12.05%!
ABR has been paying a dividend for at least 10 years, so it has a reliable track record.
ABR has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The Dividend Rate of ABR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP176.84%
EPS Next 2Y-13.65%
EPS Next 3YN/A
11.29
+0.12 (+1.07%)
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-0.05%
Ins Owners2.28%
Ins Owner Change1.41%
Market Cap2.17B
Analysts48.33
Price Target13.18 (16.74%)
Short Float %31.51%
Short Ratio13.52
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%
PT rev (3m)-10.6%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-27.03%
EPS NY rev (1m)-24.97%
EPS NY rev (3m)-27.01%
Revenue NQ rev (1m)-4.97%
Revenue NQ rev (3m)-11.53%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-7.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 10 | ||
| P/S | 1.5 | ||
| P/FCF | 4.67 | ||
| P/OCF | 4.64 | ||
| P/B | 0.71 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 38.9 |
EPS(TTM)1.75
EY15.5%
EPS(NY)1.13
Fwd EY10%
FCF(TTM)2.42
FCFY21.41%
OCF(TTM)2.44
OCFY21.57%
SpS7.53
BVpS15.96
TBVpS15.49
PEG (NY)N/A
PEG (5Y)0.95
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 | 0.34 |
F-Score7
WACC6.98%
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-16.4%
Revenue Next 2Y-4.2%
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