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. ABR has an excellent profitability rating, but there are some minor concerns on its financial health. ABR is valued quite cheap, but it does not seem to be growing. These ratings would make ABR suitable for value 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
The Return On Assets of ABR (1.47%) is better than 90.77% of its industry peers.
ABR has a better Return On Equity (6.51%) than 86.15% of its industry peers.
ABR's Return On Invested Capital of 1.58% is amongst the best of the industry. ABR outperforms 84.62% 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 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 6.51% | ||
| ROIC | 1.58% |
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 (14.53%) is better than 78.46% of its industry peers.
ABR's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 19.78%, ABR is doing good in the industry, outperforming 78.46% of the companies in the same industry.
ABR's Operating Margin has declined in the last couple of years.
ABR's Gross Margin of 44.19% is amongst the best of the industry. ABR outperforms 84.62% of its industry peers.
ABR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.78% | ||
| PM (TTM) | 14.53% | ||
| GM | 44.19% |
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.
The number of shares outstanding for ABR has been increased compared to 1 year ago.
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
ABR has an Altman-Z score of 0.31. This is a bad value and indicates that ABR is not financially healthy and even has some risk of bankruptcy.
ABR's Altman-Z score of 0.31 is amongst the best of the industry. ABR outperforms 83.08% of its industry peers.
The Debt to FCF ratio of ABR is 29.07, which is on the high side as it means it would take ABR, 29.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABR (29.07) is better than 81.54% 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.
ABR has a better Debt to Equity ratio (3.30) than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 29.07 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.22
WACC7.2%
2.3 Liquidity
ABR has a Current Ratio of 218.41. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
ABR has a Current ratio of 218.41. This is amongst the best in the industry. ABR outperforms 100.00% of its industry peers.
A Quick Ratio of 218.41 indicates that ABR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 218.41, ABR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 218.41 | ||
| Quick Ratio | 218.41 |
3. Growth
3.1 Past
ABR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.71%.
Measured over the past 5 years, ABR shows a small growth in Earnings Per Share. The EPS has been growing by 6.79% on average per year.
ABR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.84%.
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)-25.71%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-40.43%
Revenue 1Y (TTM)-15.84%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-27.19%
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 -19.78% yearly.
The Revenue is expected to decrease by -3.13% on average over the next years.
EPS Next Y-32.86%
EPS Next 2Y-19.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.68%
Revenue Next 2Y-3.13%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ABR is valuated cheaply with a Price/Earnings ratio of 6.64.
ABR's Price/Earnings ratio is rather cheap when compared to the industry. ABR is cheaper than 89.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. ABR is valued rather cheaply when compared to this.
ABR is valuated reasonably with a Price/Forward Earnings ratio of 9.20.
ABR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABR is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
87.69% of the companies in the same industry are more expensive than ABR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.84 | ||
| EV/EBITDA | 41.93 |
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 -19.78% in the coming years.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-19.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ABR has a Yearly Dividend Yield of 16.04%, which is a nice return.
Compared to an average industry Dividend Yield of 13.73, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.04% |
5.2 History
On average, the dividend of ABR grows each year by 12.05%, which is quite nice.
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
201.98% 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.
DP201.98%
EPS Next 2Y-19.78%
EPS Next 3YN/A
10.36
-0.17 (-1.61%)
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-2.88%
Ins Owners2.28%
Ins Owner Change2.86%
Market Cap1.99B
Analysts47.27
Price Target12.07 (16.51%)
Short Float %31.78%
Short Ratio14.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.04% |
Yearly Dividend2.09
Dividend Growth(5Y)12.05%
DP201.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.96%
Min EPS beat(2)2.68%
Max EPS beat(2)11.25%
EPS beat(4)4
Avg EPS beat(4)7.77%
Min EPS beat(4)2.68%
Max EPS beat(4)11.25%
EPS beat(8)8
Avg EPS beat(8)13.39%
EPS beat(12)11
Avg EPS beat(12)16.76%
EPS beat(16)14
Avg EPS beat(16)16.55%
Revenue beat(2)0
Avg Revenue beat(2)-3.02%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-2.83%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)4.78%
Revenue beat(8)5
Avg Revenue beat(8)3.66%
Revenue beat(12)9
Avg Revenue beat(12)67.14%
Revenue beat(16)13
Avg Revenue beat(16)101.68%
PT rev (1m)0%
PT rev (3m)-8.97%
EPS NQ rev (1m)-16.22%
EPS NQ rev (3m)-18.13%
EPS NY rev (1m)4.05%
EPS NY rev (3m)-21.92%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-6.23%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 9.2 | ||
| P/S | 1.48 | ||
| P/FCF | 5.84 | ||
| P/OCF | 5.65 | ||
| P/B | 0.66 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 41.93 |
EPS(TTM)1.56
EY15.06%
EPS(NY)1.13
Fwd EY10.87%
FCF(TTM)1.77
FCFY17.13%
OCF(TTM)1.83
OCFY17.69%
SpS7.01
BVpS15.65
TBVpS15.19
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 6.51% | ||
| ROCE | 1.99% | ||
| ROIC | 1.58% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.69% | ||
| OM | 19.78% | ||
| PM (TTM) | 14.53% | ||
| GM | 44.19% | ||
| FCFM | 25.3% |
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-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 29.07 | ||
| Debt/EBITDA | 35.74 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.36 | ||
| Cash Conversion | 126.98% | ||
| Profit Quality | 174.11% | ||
| Current Ratio | 218.41 | ||
| Quick Ratio | 218.41 | ||
| Altman-Z | 0.31 |
F-Score6
WACC7.2%
ROIC/WACC0.22
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)-25.71%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-40.43%
EPS Next Y-32.86%
EPS Next 2Y-19.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.84%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-27.19%
Revenue Next Year-13.68%
Revenue Next 2Y-3.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.68%
EBIT growth 3Y-9.53%
EBIT growth 5Y11.4%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y65.52%
FCF growth 3Y28.32%
FCF growth 5YN/A
OCF growth 1Y70.93%
OCF growth 3Y28.64%
OCF growth 5YN/A