ARBOR REALTY TRUST INC (ABR) Stock Fundamental Analysis
NYSE:ABR - US0389231087 - REIT
11.94 USD
+0.12 (+1.02%)
11.94 USD
0 (0%)
ABR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 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 correctly, but it does not seem to be growing.
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.
ABR had positive earnings in each of the past 5 years.
In the past 5 years ABR always reported a positive cash flow from operatings.
1.2 Ratios
ABR's Return On Assets of 1.27% is amongst the best of the industry. ABR outperforms 88.06% of its industry peers.
Looking at the Return On Equity, with a value of 5.80%, ABR belongs to the top of the industry, outperforming 89.55% of the companies in the same industry.
With an excellent Return On Invested Capital value of 1.43%, ABR belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
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 1.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 5.8% | ||
| ROIC | 1.43% |
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 (13.39%) than 77.61% of its industry peers.
ABR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.07%, ABR belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
ABR's Operating Margin has declined in the last couple of years.
ABR has a Gross Margin of 44.50%. This is amongst the best in the industry. ABR outperforms 86.57% of its industry peers.
ABR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.07% | ||
| PM (TTM) | 13.39% | ||
| GM | 44.5% |
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.
The number of shares outstanding for ABR has been increased compared to 1 year ago.
The number of shares outstanding for ABR has been increased compared to 5 years ago.
ABR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.30, we must say that ABR is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.30, ABR belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
ABR has a debt to FCF ratio of 31.18. This is a negative value and a sign of low solvency as ABR would need 31.18 years to pay back of all of its debts.
The Debt to FCF ratio of ABR (31.18) is better than 80.60% of its industry peers.
ABR has a Debt/Equity ratio of 3.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.40, ABR is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | 31.18 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.2
WACC7%
2.3 Liquidity
A Current Ratio of 80.25 indicates that ABR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 80.25, ABR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 80.25 indicates that ABR has no problem at all paying its short term obligations.
ABR has a better Quick ratio (80.25) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 80.25 | ||
| Quick Ratio | 80.25 |
3. Growth
3.1 Past
ABR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.31%.
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 -17.62% in the last year.
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)-31.31%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)-17.62%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-21.87%
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 -21.42% on average per year.
The Revenue is expected to decrease by -4.32% on average over the next years.
EPS Next Y-40.36%
EPS Next 2Y-21.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.03%
Revenue Next 2Y-4.32%
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 8.78, which indicates a very decent valuation of ABR.
Based on the Price/Earnings ratio, ABR is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABR to the average of the S&P500 Index (27.08), we can say ABR is valued rather cheaply.
The Price/Forward Earnings ratio is 11.05, which indicates a very decent valuation of ABR.
ABR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.72. ABR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 11.05 |
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 91.04% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABR is valued cheaply inside the industry as 85.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.07 | ||
| EV/EBITDA | 46.84 |
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 -21.42% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-21.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.15%, ABR is a good candidate for dividend investing.
ABR's Dividend Yield is slightly below the industry average, which is at 11.85.
ABR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.15% |
5.2 History
The dividend of ABR is nicely growing with an annual growth rate of 12.05%!
ABR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.05%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ABR pays out 214.62% 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.
DP214.62%
EPS Next 2Y-21.42%
EPS Next 3YN/A
11.94
+0.12 (+1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners56.79%
Inst Owner Change45.78%
Ins Owners2.38%
Ins Owner Change3.56%
Market Cap2.30B
Analysts47.27
Price Target12.07 (1.09%)
Short Float %28.01%
Short Ratio19.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.15% |
Yearly Dividend2.09
Dividend Growth(5Y)12.05%
DP214.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.74%
Min EPS beat(2)2.68%
Max EPS beat(2)8.8%
EPS beat(4)4
Avg EPS beat(4)7.97%
Min EPS beat(4)2.68%
Max EPS beat(4)11.25%
EPS beat(8)8
Avg EPS beat(8)11.08%
EPS beat(12)11
Avg EPS beat(12)16.22%
EPS beat(16)14
Avg EPS beat(16)15.79%
Revenue beat(2)0
Avg Revenue beat(2)-7.43%
Min Revenue beat(2)-11.66%
Max Revenue beat(2)-3.21%
Revenue beat(4)1
Avg Revenue beat(4)-3.23%
Min Revenue beat(4)-11.66%
Max Revenue beat(4)4.78%
Revenue beat(8)4
Avg Revenue beat(8)1.15%
Revenue beat(12)8
Avg Revenue beat(12)50.32%
Revenue beat(16)12
Avg Revenue beat(16)85.96%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-6.06%
EPS NQ rev (3m)-16.96%
EPS NY rev (1m)-6.34%
EPS NY rev (3m)-11.17%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 11.05 | ||
| P/S | 1.78 | ||
| P/FCF | 7.07 | ||
| P/OCF | 6.71 | ||
| P/B | 0.77 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 46.84 |
EPS(TTM)1.36
EY11.39%
EPS(NY)1.08
Fwd EY9.05%
FCF(TTM)1.69
FCFY14.14%
OCF(TTM)1.78
OCFY14.9%
SpS6.7
BVpS15.47
TBVpS15.02
PEG (NY)N/A
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 5.8% | ||
| ROCE | 1.81% | ||
| ROIC | 1.43% | ||
| ROICexc | 1.46% | ||
| ROICexgc | 1.52% | ||
| OM | 19.07% | ||
| PM (TTM) | 13.39% | ||
| GM | 44.5% | ||
| FCFM | 25.22% |
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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | 31.18 | ||
| Debt/EBITDA | 38.99 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.35 | ||
| Cash Conversion | 131.78% | ||
| Profit Quality | 188.38% | ||
| Current Ratio | 80.25 | ||
| Quick Ratio | 80.25 | ||
| Altman-Z | 0.3 |
F-Score5
WACC7%
ROIC/WACC0.2
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)-31.31%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-44.44%
EPS Next Y-40.36%
EPS Next 2Y-21.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.62%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-21.87%
Revenue Next Year-15.03%
Revenue Next 2Y-4.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-29.76%
EBIT growth 3Y-9.53%
EBIT growth 5Y11.4%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-25.64%
FCF growth 3Y28.32%
FCF growth 5YN/A
OCF growth 1Y-21.63%
OCF growth 3Y28.64%
OCF growth 5YN/A