ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis
USA - NYSE:ARR - US0423157058 - REIT
16.83 USD
+0.25 (+1.51%)
16.847 USD
+0.02 (+0.1%)
ARR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ARR has a bad profitability rating. Also its financial health evaluation is rather negative. ARR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARR was profitable.
In the past year ARR had a positive cash flow from operations.
ARR had negative earnings in 4 of the past 5 years.
ARR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.27%, ARR is in line with its industry, outperforming 52.94% of the companies in the same industry.
ARR has a Return On Equity of 2.47%. This is comparable to the rest of the industry: ARR outperforms 52.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.27%, ARR is doing worse than 70.59% of the companies in the same industry.
| 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
With a decent Profit Margin value of 7.37%, ARR is doing good in the industry, outperforming 66.18% of the companies in the same industry.
Looking at the Operating Margin, with a value of 9.06%, ARR is in line with its industry, outperforming 48.53% of the companies in the same industry.
With a Gross Margin value of 11.18%, ARR is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
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
The number of shares outstanding for ARR has been increased compared to 1 year ago.
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.
Looking at the Altman-Z score, with a value of -0.97, ARR is doing worse than 82.35% of the companies in the same industry.
ARR has a debt to FCF ratio of 92.46. This is a negative value and a sign of low solvency as ARR would need 92.46 years to pay back of all of its debts.
ARR has a Debt to FCF ratio of 92.46. This is in the better half of the industry: ARR outperforms 64.71% of its industry peers.
ARR has a Debt/Equity ratio of 7.78. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARR (7.78) is worse than 69.12% of its industry peers.
| 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.
ARR has a worse Current ratio (0.02) than 86.76% of its industry peers.
A Quick Ratio of 0.02 indicates that ARR may have some problems paying its short term obligations.
ARR has a Quick ratio of 0.02. This is amonst the worse of the industry: ARR underperforms 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.
Measured over the past years, ARR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.48% on average per year.
Looking at the last year, ARR shows a small growth in Revenue. The Revenue has grown by 0.39% in the last year.
ARR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.97% yearly.
EPS 1Y (TTM)-21.16%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%-28%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%1993.53%
3.2 Future
ARR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.54% yearly.
ARR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 122.74% yearly.
EPS Next Y-14.78%
EPS Next 2Y-4.16%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue Next Year185.13%
Revenue Next 2Y122.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 5.38, the valuation of ARR can be described as very cheap.
ARR's Price/Earnings ratio is rather cheap when compared to the industry. ARR is cheaper than 92.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARR to the average of the S&P500 Index (25.83), we can say ARR is valued rather cheaply.
ARR is valuated cheaply with a Price/Forward Earnings ratio of 4.98.
Based on the Price/Forward Earnings ratio, ARR is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
ARR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.38 | ||
| Fwd PE | 4.98 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARR is valued a bit cheaper than 72.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.58 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ARR's earnings are expected to decrease with -5.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-4.16%
EPS Next 3Y-5.54%
5. Dividend
5.1 Amount
ARR has a Yearly Dividend Yield of 17.37%, which is a nice return.
Compared to an average industry Dividend Yield of 13.19, ARR pays a better dividend. On top of this ARR pays more dividend than 95.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ARR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.37% |
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
ARR pays out 467.46% of its income as dividend. 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-4.16%
EPS Next 3Y-5.54%
16.83
+0.25 (+1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners40.58%
Inst Owner Change2.3%
Ins Owners0.16%
Ins Owner Change5.73%
Market Cap1.89B
Revenue(TTM)712.60M
Net Income(TTM)52.54M
Analysts50
Price Target17.68 (5.05%)
Short Float %9.72%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.37% |
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)0.97%
PT rev (3m)0%
EPS NQ rev (1m)13.64%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-9.3%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)-14.24%
Revenue NY rev (3m)-19.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.38 | ||
| Fwd PE | 4.98 | ||
| P/S | 2.66 | ||
| P/FCF | 10.58 | ||
| P/OCF | 10.58 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.13
EY18.6%
EPS(NY)3.38
Fwd EY20.08%
FCF(TTM)1.59
FCFY9.45%
OCF(TTM)1.59
OCFY9.45%
SpS6.33
BVpS18.91
TBVpS18.91
PEG (NY)N/A
PEG (5Y)0.57
Graham Number36.49
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 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%-28%
EPS Next Y-14.78%
EPS Next 2Y-4.16%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue 1Y (TTM)0.39%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%1993.53%
Revenue Next Year185.13%
Revenue Next 2Y122.74%
Revenue Next 3YN/A
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 for 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 1 / 10.
Can you provide the PE and PB ratios for ARR stock?
The Price/Earnings (PE) ratio for ARMOUR RESIDENTIAL REIT INC (ARR) is 5.38 and the Price/Book (PB) ratio is 0.89.
Can you provide the expected EPS growth for ARR stock?
The Earnings per Share (EPS) of ARMOUR RESIDENTIAL REIT INC (ARR) is expected to decline by -14.78% in the next year.