ARBOR REALTY TRUST INC (ABR)
US0389231087 - REIT
We assign a fundamental rating of 6 out of 10 to ABR. ABR was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While ABR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ABR is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past year ABR had a positive cash flow from operations.
Each year in the past 5 years ABR has been profitable.
Of the past 5 years ABR 4 years had a positive operating cash flow.
1.2 Ratios
ABR has a better Return On Assets (2.01%) than 92.19% of its industry peers.
Looking at the Return On Equity, with a value of 9.80%, ABR belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.01%, ABR is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABR is in line with the industry average of 1.97%.
The last Return On Invested Capital (2.01%) for ABR is above the 3 year average (1.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 9.8% | ||
| ROIC | 2.01% |
ROA(3y)1.96%
ROA(5y)1.99%
ROE(3y)11.14%
ROE(5y)11.16%
ROIC(3y)1.93%
ROIC(5y)2.05%
1.3 Margins
ABR's Profit Margin of 18.96% is amongst the best of the industry. ABR outperforms 84.38% of its industry peers.
ABR's Profit Margin has declined in the last couple of years.
The Operating Margin of ABR (24.01%) is better than 73.44% of its industry peers.
ABR's Operating Margin has declined in the last couple of years.
ABR's Gross Margin of 43.71% is fine compared to the rest of the industry. ABR outperforms 76.56% of its industry peers.
In the last couple of years the Gross Margin of ABR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.01% | ||
| PM (TTM) | 18.96% | ||
| GM | 43.71% |
OM growth 3Y-12.59%
OM growth 5Y-4.65%
PM growth 3Y-9.11%
PM growth 5Y-1.87%
GM growth 3Y-14.88%
GM growth 5Y-8.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
ABR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.40, we must say that ABR is in the distress zone and has some risk of bankruptcy.
ABR has a better Altman-Z score (0.40) than 82.81% of its industry peers.
ABR has a debt to FCF ratio of 20.75. This is a negative value and a sign of low solvency as ABR would need 20.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.75, ABR is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
ABR has a Debt/Equity ratio of 3.70. This is a high value indicating a heavy dependency on external financing.
ABR's Debt to Equity ratio of 3.70 is fine compared to the rest of the industry. ABR outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.7 | ||
| Debt/FCF | 20.75 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.3
WACC6.77%
2.3 Liquidity
ABR has a Current Ratio of 71.50. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
ABR's Current ratio of 71.50 is amongst the best of the industry. ABR outperforms 100.00% of its industry peers.
A Quick Ratio of 71.50 indicates that ABR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 71.50, ABR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 71.5 | ||
| Quick Ratio | 71.5 |
3. Growth
3.1 Past
ABR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.13%, which is quite good.
ABR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.12% yearly.
The Revenue has grown by 18.45% in the past year. This is quite good.
Measured over the past years, ABR shows a very strong growth in Revenue. The Revenue has been growing by 27.35% on average per year.
EPS 1Y (TTM)14.13%
EPS 3Y6.17%
EPS 5Y10.12%
EPS Q2Q%-24.19%
Revenue 1Y (TTM)18.45%
Revenue growth 3Y39.08%
Revenue growth 5Y27.35%
Sales Q2Q%-4.57%
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 -12.70% yearly.
ABR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.41% yearly.
EPS Next Y-23.69%
EPS Next 2Y-12.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.35%
Revenue Next 2Y-7.41%
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
The Price/Earnings ratio is 6.49, which indicates a rather cheap valuation of ABR.
Based on the Price/Earnings ratio, ABR is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
ABR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
With a Price/Forward Earnings ratio of 7.94, the valuation of ABR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABR indicates a somewhat cheap valuation: ABR is cheaper than 70.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ABR to the average of the S&P500 Index (20.59), we can say ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABR indicates a rather cheap valuation: ABR is cheaper than 89.06% of the companies listed 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 89.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | 33.01 |
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 -12.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-12.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ABR has a Yearly Dividend Yield of 13.18%, which is a nice return.
ABR's Dividend Yield is a higher than the industry average which is at 12.46.
Compared to an average S&P500 Dividend Yield of 2.30, ABR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.18% |
5.2 History
The dividend of ABR is nicely growing with an annual growth rate of 15.06%!
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)15.06%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ABR pays out 128.05% of its income as dividend. 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.
DP128.05%
EPS Next 2Y-12.7%
EPS Next 3YN/A
ARBOR REALTY TRUST INC
NYSE:ABR (7/26/2024, 7:14:38 PM)
After market: 13.6399 +0.02 (+0.15%)13.62
+0.59 (+4.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 7.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 9.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.01% | ||
| PM (TTM) | 18.96% | ||
| GM | 43.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 71.5 | ||
| Quick Ratio | 71.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.13%
EPS 3Y6.17%
EPS 5Y
EPS Q2Q%
EPS Next Y-23.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.45%
Revenue growth 3Y39.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y