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ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis

NYSE:ARR - New York Stock Exchange, Inc. - US0423157058 - REIT - Currency: USD

16.4  -0.07 (-0.43%)

After market: 16.46 +0.06 (+0.37%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ARR. ARR was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ARR may be in some trouble as it scores bad on both profitability and health. ARR has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ARR had positive earnings in the past year.
ARR had a positive operating cash flow in the past year.
ARR had negative earnings in 4 of the past 5 years.
Of the past 5 years ARR 4 years had a positive operating cash flow.
ARR Yearly Net Income VS EBIT VS OCF VS FCFARR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M

1.2 Ratios

ARR's Return On Assets of -0.09% is on the low side compared to the rest of the industry. ARR is outperformed by 66.15% of its industry peers.
ARR has a worse Return On Equity (-0.80%) than 66.15% of its industry peers.
Industry RankSector Rank
ROA -0.09%
ROE -0.8%
ROIC N/A
ROA(3y)-1.14%
ROA(5y)-1.48%
ROE(3y)-9.99%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
ARR Yearly ROA, ROE, ROICARR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

ARR has a worse Gross Margin (1.88%) than 95.38% of its industry peers.
ARR's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for ARR so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 1.88%
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
ARR Yearly Profit, Operating, Gross MarginsARR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200

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0

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
Compared to 1 year ago, ARR has a worse debt to assets ratio.
ARR Yearly Shares OutstandingARR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ARR Yearly Total Debt VS Total AssetsARR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

ARR has an Altman-Z score of -1.03. This is a bad value and indicates that ARR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -1.03, ARR is not doing good in the industry: 95.38% of the companies in the same industry are doing better.
ARR has a debt to FCF ratio of 46.94. This is a negative value and a sign of low solvency as ARR would need 46.94 years to pay back of all of its debts.
ARR has a Debt to FCF ratio (46.94) which is comparable to the rest of the industry.
ARR has a Debt/Equity ratio of 7.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.33, ARR is doing worse than 73.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 7.33
Debt/FCF 46.94
Altman-Z -1.03
ROIC/WACCN/A
WACCN/A
ARR Yearly LT Debt VS Equity VS FCFARR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

ARR has a Current Ratio of 0.01. This is a bad value and indicates that ARR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.01, ARR is doing worse than 89.23% of the companies in the same industry.
ARR has a Quick Ratio of 0.01. This is a bad value and indicates that ARR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.01, ARR is doing worse than 89.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.01
Quick Ratio 0.01
ARR Yearly Current Assets VS Current LiabilitesARR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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6

3. Growth

3.1 Past

The earnings per share for ARR have decreased by -9.71% in the last year.
The Earnings Per Share has been growing by 9.48% on average over the past years. This is quite good.
The Revenue has decreased by -3.12% in the past 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)-9.71%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%4.88%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%581.67%

3.2 Future

Based on estimates for the next years, ARR will show a decrease in Earnings Per Share. The EPS will decrease by -5.54% on average per year.
ARR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 147.78% yearly.
EPS Next Y0.68%
EPS Next 2Y3.26%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue Next Year376.45%
Revenue Next 2Y147.78%
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.
ARR Yearly Revenue VS EstimatesARR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 200M 400M
ARR Yearly EPS VS EstimatesARR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15 20

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6

4. Valuation

4.1 Price/Earnings Ratio

ARR is valuated cheaply with a Price/Earnings ratio of 4.41.
Based on the Price/Earnings ratio, ARR is valued cheaper than 96.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.85. ARR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.18 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 98.46% of the companies listed in the same industry.
ARR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.77.
Industry RankSector Rank
PE 4.41
Fwd PE 4.18
ARR Price Earnings VS Forward Price EarningsARR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

87.69% of the companies in the same industry are more expensive than ARR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.93
EV/EBITDA N/A
ARR Per share dataARR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ARR's earnings are expected to decrease with -5.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)6.49
PEG (5Y)0.47
EPS Next 2Y3.26%
EPS Next 3Y-5.54%

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5

5. Dividend

5.1 Amount

ARR has a Yearly Dividend Yield of 17.30%, which is a nice return.
Compared to an average industry Dividend Yield of 14.20, ARR pays a better dividend. On top of this ARR pays more dividend than 84.62% of the companies listed in the same industry.
ARR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 17.3%

5.2 History

The dividend of ARR has a limited annual growth rate of 1.50%.
ARR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.5%
Div Incr Years0
Div Non Decr Years0
ARR Yearly Dividends per shareARR Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 200 300 400

5.3 Sustainability

The earnings of ARR are negative and hence is the payout ratio. ARR will probably not be able to sustain this dividend level.
DP-1339.51%
EPS Next 2Y3.26%
EPS Next 3Y-5.54%
ARR Yearly Income VS Free CF VS DividendARR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M

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ARMOUR RESIDENTIAL REIT INC

NYSE:ARR (5/1/2025, 8:45:32 PM)

After market: 16.46 +0.06 (+0.37%)

16.4

-0.07 (-0.43%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners44.51%
Inst Owner Change0.61%
Ins Owners0.24%
Ins Owner Change3.97%
Market Cap1.31B
Analysts51.43
Price Target17.68 (7.8%)
Short Float %10.03%
Short Ratio2.43
Dividend
Industry RankSector Rank
Dividend Yield 17.3%
Yearly Dividend2.93
Dividend Growth(5Y)1.5%
DP-1339.51%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-15 2025-04-15 (0.24)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.35%
Min EPS beat(2)-21.46%
Max EPS beat(2)-3.24%
EPS beat(4)2
Avg EPS beat(4)-3.96%
Min EPS beat(4)-21.46%
Max EPS beat(4)8.45%
EPS beat(8)3
Avg EPS beat(8)-4.91%
EPS beat(12)5
Avg EPS beat(12)-2.21%
EPS beat(16)6
Avg EPS beat(16)-2.91%
Revenue beat(2)0
Avg Revenue beat(2)-56.11%
Min Revenue beat(2)-73.6%
Max Revenue beat(2)-38.62%
Revenue beat(4)0
Avg Revenue beat(4)-73.92%
Min Revenue beat(4)-96.41%
Max Revenue beat(4)-38.62%
Revenue beat(8)0
Avg Revenue beat(8)-81.03%
Revenue beat(12)1
Avg Revenue beat(12)-93.99%
Revenue beat(16)2
Avg Revenue beat(16)-121.04%
PT rev (1m)-13.33%
PT rev (3m)-14.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.88%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)42.54%
Revenue NY rev (1m)13.75%
Revenue NY rev (3m)21.53%
Valuation
Industry RankSector Rank
PE 4.41
Fwd PE 4.18
P/S 2.3
P/FCF 4.93
P/OCF 4.93
P/B 0.77
P/tB 0.77
EV/EBITDA N/A
EPS(TTM)3.72
EY22.68%
EPS(NY)3.92
Fwd EY23.93%
FCF(TTM)3.33
FCFY20.29%
OCF(TTM)3.33
OCFY20.29%
SpS7.12
BVpS21.31
TBVpS21.31
PEG (NY)6.49
PEG (5Y)0.47
Profitability
Industry RankSector Rank
ROA -0.09%
ROE -0.8%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 1.88%
FCFM 46.75%
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
ROICexcg growth 3YN/A
ROICexcg 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 RankSector Rank
Debt/Equity 7.33
Debt/FCF 46.94
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.01
Quick Ratio 0.01
Altman-Z -1.03
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)-9.71%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%4.88%
EPS Next Y0.68%
EPS Next 2Y3.26%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%581.67%
Revenue Next Year376.45%
Revenue Next 2Y147.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y92.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.57%
FCF growth 3Y181.37%
FCF growth 5YN/A
OCF growth 1Y1.57%
OCF growth 3Y181.37%
OCF growth 5YN/A