ARBOR REALTY TRUST INC (ABR)

US0389231087 - REIT

13.01  +0.17 (+1.32%)

After market: 13.02 +0.01 (+0.08%)

Fundamental Rating

6

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. Both the profitability and the financial health of ABR get a neutral evaluation. Nothing too spectacular is happening here. ABR is valued quite cheap, while showing a decent growth score. This is a good combination! ABR also has an excellent dividend rating. This makes ABR very considerable for value and dividend investing!



6

1. Profitability

1.1 Basic Checks

In the past year ABR was profitable.
In the past year ABR had a positive cash flow from operations.
ABR had positive earnings in each of the past 5 years.
In multiple years ABR reported negative operating cash flow during the last 5 years.

1.2 Ratios

ABR has a better Return On Assets (2.05%) than 75.00% of its industry peers.
ABR's Return On Equity of 10.52% is amongst the best of the industry. ABR outperforms 92.19% of its industry peers.
ABR has a Return On Invested Capital of 2.06%. This is in the better half of the industry: ABR outperforms 73.44% of its industry peers.
ABR had an Average Return On Invested Capital over the past 3 years of 1.93%. This is in line with the industry average of 2.12%.
The 3 year average ROIC (1.93%) for ABR is below the current ROIC(2.06%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.05%
ROE 10.52%
ROIC 2.06%
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 20.26% is fine compared to the rest of the industry. ABR outperforms 73.44% of its industry peers.
In the last couple of years the Profit Margin of ABR has declined.
ABR has a Operating Margin of 25.66%. This is in the better half of the industry: ABR outperforms 71.88% of its industry peers.
ABR's Operating Margin has declined in the last couple of years.
The Gross Margin of ABR (45.22%) is better than 73.44% of its industry peers.
ABR's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 25.66%
PM (TTM) 20.26%
GM 45.22%
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%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
ABR has a better debt/assets ratio than last year.

2.2 Solvency

ABR has an Altman-Z score of 0.39. This is a bad value and indicates that ABR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.39, ABR is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
The Debt to FCF ratio of ABR is 27.45, which is on the high side as it means it would take ABR, 27.45 years of fcf income to pay off all of its debts.
ABR has a better Debt to FCF ratio (27.45) than 67.19% of its industry peers.
ABR has a Debt/Equity ratio of 3.95. This is a high value indicating a heavy dependency on external financing.
ABR has a Debt to Equity ratio (3.95) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 3.95
Debt/FCF 27.45
Altman-Z 0.39
ROIC/WACC0.41
WACC5.07%

2.3 Liquidity

A Current Ratio of 553.50 indicates that ABR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 553.50, ABR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ABR has a Quick Ratio of 553.50. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ABR (553.50) is better than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 553.5
Quick Ratio 553.5

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 16.49%, 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 58.06% in the past year. This is a very strong growth!
The Revenue has been growing by 27.35% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.49%
EPS 3Y6.17%
EPS 5Y10.12%
EPS growth Q2Q52.78%
Revenue 1Y (TTM)58.06%
Revenue growth 3Y39.08%
Revenue growth 5Y27.35%
Revenue growth Q2Q37.69%

3.2 Future

Based on estimates for the next years, ABR will show a decrease in Earnings Per Share. The EPS will decrease by -7.55% on average per year.
Based on estimates for the next years, ABR will show a small growth in Revenue. The Revenue will grow by 2.03% on average per year.
EPS Next Y-19.18%
EPS Next 2Y-7.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.48%
Revenue Next 2Y2.03%
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.

8

4. Valuation

4.1 Price/Earnings Ratio

ABR is valuated cheaply with a Price/Earnings ratio of 5.94.
Based on the Price/Earnings ratio, ABR is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABR to the average of the S&P500 Index (26.35), we can say ABR is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.15, the valuation of ABR can be described as very cheap.
Based on the Price/Forward Earnings ratio, ABR is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, ABR is valued rather cheaply.
Industry RankSector Rank
PE 5.94
Fwd PE 7.15

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABR is valued cheaper than 92.19% of the companies in the same industry.
82.81% of the companies in the same industry are more expensive than ABR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.49
EV/EBITDA 32.56

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 -7.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-7.55%
EPS Next 3YN/A

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 13.32%, ABR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.65, ABR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, ABR pays a better dividend.
Industry RankSector Rank
Dividend Yield 13.32%

5.2 History

The dividend of ABR is nicely growing with an annual growth rate of 17.30%!
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)17.3%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

113.14% 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.
DP113.14%
EPS Next 2Y-7.55%
EPS Next 3YN/A

ARBOR REALTY TRUST INC

NYSE:ABR (2/23/2024, 7:27:29 PM)

After market: 13.02 +0.01 (+0.08%)

13.01

+0.17 (+1.32%)

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 Cap2.45B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 13.32%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 5.94
Fwd PE 7.15
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)0.59
Profitability
Industry RankSector Rank
ROA 2.05%
ROE 10.52%
ROCE
ROIC
ROICexc
ROICexgc
OM 25.66%
PM (TTM) 20.26%
GM 45.22%
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 Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 3.95
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 553.5
Quick Ratio 553.5
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)
Growth
EPS 1Y (TTM)16.49%
EPS 3Y6.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)58.06%
Revenue growth 3Y39.08%
Revenue growth 5Y
Revenue growth 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