ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARR - US0423157058 - REIT
18.1 USD
+0.03 (+0.17%)
18.22 USD
+0.12 (+0.66%)
Overall ARR gets a fundamental rating of 3 out of 10. We evaluated ARR against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of ARR have multiple concerns. ARR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ARR had positive earnings in the past year.
In the past year ARR had a positive cash flow from operations.
In the past 5 years ARR reported 4 times negative net income.
ARR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.27%, ARR perfoms like the industry average, outperforming 44.12% of the companies in the same industry.
ARR has a Return On Equity (2.47%) which is in line with its industry peers.
With a Return On Invested Capital value of 0.27%, ARR is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 2.47% | ||
| ROIC | 0.27% |
ROA(3y)-1.14%
ROA(5y)-1.48%
ROE(3y)-9.99%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.37%, ARR is in line with its industry, outperforming 58.82% of the companies in the same industry.
With a Operating Margin value of 9.06%, ARR perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
ARR has a Gross Margin of 11.18%. This is amonst the worse of the industry: ARR underperforms 85.29% of its industry peers.
In the last couple of years the Gross Margin of ARR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.06% | ||
| PM (TTM) | 7.37% | ||
| GM | 11.18% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-71.79%
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, ARR has more shares outstanding
Compared to 5 years ago, ARR has more shares outstanding
The debt/assets ratio for ARR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.97, we must say that ARR is in the distress zone and has some risk of bankruptcy.
ARR's Altman-Z score of -0.97 is on the low side compared to the rest of the industry. ARR is outperformed by 92.65% of its industry peers.
The Debt to FCF ratio of ARR is 92.46, which is on the high side as it means it would take ARR, 92.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARR (92.46) is better than 66.18% of its industry peers.
A Debt/Equity ratio of 7.78 is on the high side and indicates that ARR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.78, ARR is doing worse than 63.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.78 | ||
| Debt/FCF | 92.46 | ||
| Altman-Z | -0.97 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.02 indicates that ARR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.02, ARR is doing worse than 86.76% of the companies in the same industry.
A Quick Ratio of 0.02 indicates that ARR may have some problems paying its short term obligations.
ARR's Quick ratio of 0.02 is on the low side compared to the rest of the industry. ARR is outperformed by 86.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
The earnings per share for ARR have decreased strongly by -21.16% in the last year.
The earnings per share for ARR have been decreasing by -20.65% on average. This is quite bad
Looking at the last year, ARR shows a small growth in Revenue. The Revenue has grown by 0.39% in the last year.
Measured over the past years, ARR shows a very strong growth in Revenue. The Revenue has been growing by 48.97% on average per year.
EPS 1Y (TTM)-21.16%
EPS 3Y-8.48%
EPS 5Y-20.65%
EPS Q2Q%-28%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%1993.53%
3.2 Future
The Earnings Per Share is expected to decrease by -4.23% on average over the next years.
ARR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 99.53% yearly.
EPS Next Y-14.71%
EPS Next 2Y-4.74%
EPS Next 3Y-4.23%
EPS Next 5YN/A
Revenue Next Year191.78%
Revenue Next 2Y127.83%
Revenue Next 3Y99.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.78 indicates a rather cheap valuation of ARR.
Based on the Price/Earnings ratio, ARR is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
ARR is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.42, which indicates a rather cheap valuation of ARR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARR indicates a rather cheap valuation: ARR is cheaper than 92.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, ARR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 5.42 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARR is valued a bit cheaper than 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ARR's earnings are expected to decrease with -4.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.74%
EPS Next 3Y-4.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.94%, ARR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.16, ARR is paying slightly less dividend.
ARR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.94% |
5.2 History
The dividend of ARR has a limited annual growth rate of 1.50%.
ARR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
467.46% of the earnings are spent on dividend by ARR. This is not a sustainable payout ratio.
The Dividend Rate of ARR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP467.46%
EPS Next 2Y-4.74%
EPS Next 3Y-4.23%
18.1
+0.03 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.3%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change5.34%
Market Cap2.03B
Revenue(TTM)712.60M
Net Income(TTM)52.54M
Analysts72
Price Target17.85 (-1.38%)
Short Float %11.12%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.94% |
Yearly Dividend2.93
Dividend Growth(5Y)1.5%
DP467.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.82%
Min EPS beat(2)-7.48%
Max EPS beat(2)-0.16%
EPS beat(4)0
Avg EPS beat(4)-8.09%
Min EPS beat(4)-21.46%
Max EPS beat(4)-0.16%
EPS beat(8)3
Avg EPS beat(8)-4.19%
EPS beat(12)3
Avg EPS beat(12)-4.66%
EPS beat(16)6
Avg EPS beat(16)-1.79%
Revenue beat(2)0
Avg Revenue beat(2)-38.03%
Min Revenue beat(2)-40.28%
Max Revenue beat(2)-35.79%
Revenue beat(4)0
Avg Revenue beat(4)-43.36%
Min Revenue beat(4)-73.6%
Max Revenue beat(4)-23.76%
Revenue beat(8)0
Avg Revenue beat(8)-66.78%
Revenue beat(12)1
Avg Revenue beat(12)-51.86%
Revenue beat(16)1
Avg Revenue beat(16)-105.8%
PT rev (1m)2.94%
PT rev (3m)1.94%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)10.09%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)-8.37%
Revenue NQ rev (3m)-8.62%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)-12.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 5.42 | ||
| P/S | 2.84 | ||
| P/FCF | 11.31 | ||
| P/OCF | 11.31 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.13
EY17.29%
EPS(NY)3.34
Fwd EY18.45%
FCF(TTM)1.6
FCFY8.84%
OCF(TTM)1.6
OCFY8.84%
SpS6.37
BVpS19.02
TBVpS19.02
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 2.47% | ||
| ROCE | 2.84% | ||
| ROIC | 0.27% | ||
| ROICexc | 0.27% | ||
| ROICexgc | 0.28% | ||
| OM | 9.06% | ||
| PM (TTM) | 7.37% | ||
| GM | 11.18% | ||
| FCFM | 25.13% |
ROA(3y)-1.14%
ROA(5y)-1.48%
ROE(3y)-9.99%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-71.79%
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.78 | ||
| Debt/FCF | 92.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.1 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 340.84% | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | -0.97 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.16%
EPS 3Y-8.48%
EPS 5Y-20.65%
EPS Q2Q%-28%
EPS Next Y-14.71%
EPS Next 2Y-4.74%
EPS Next 3Y-4.23%
EPS Next 5YN/A
Revenue 1Y (TTM)0.39%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%1993.53%
Revenue Next Year191.78%
Revenue Next 2Y127.83%
Revenue Next 3Y99.53%
Revenue Next 5YN/A
EBIT growth 1Y-50.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.45%
FCF growth 3Y181.37%
FCF growth 5YN/A
OCF growth 1Y-0.45%
OCF growth 3Y181.37%
OCF growth 5YN/A
ARMOUR RESIDENTIAL REIT INC / ARR FAQ
What is the fundamental rating for ARR stock?
ChartMill assigns a fundamental rating of 3 / 10 to ARR.
What is the valuation status of ARMOUR RESIDENTIAL REIT INC (ARR) stock?
ChartMill assigns a valuation rating of 6 / 10 to ARMOUR RESIDENTIAL REIT INC (ARR). This can be considered as Fairly Valued.
Can you provide the profitability details for ARMOUR RESIDENTIAL REIT INC?
ARMOUR RESIDENTIAL REIT INC (ARR) has a profitability rating of 2 / 10.
What is the valuation of ARMOUR RESIDENTIAL REIT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARMOUR RESIDENTIAL REIT INC (ARR) is 5.78 and the Price/Book (PB) ratio is 0.95.
How financially healthy is ARMOUR RESIDENTIAL REIT INC?
The financial health rating of ARMOUR RESIDENTIAL REIT INC (ARR) is 1 / 10.