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ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis

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

16.8  +0.42 (+2.56%)

Premarket: 16.76 -0.04 (-0.24%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ARR. ARR was compared to 67 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

In the past year ARR was profitable.
ARR had a positive operating cash flow in the past year.
In the past 5 years ARR reported 4 times negative net income.
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 -0.25% is on the low side compared to the rest of the industry. ARR is outperformed by 70.15% of its industry peers.
ARR's Return On Equity of -2.46% is on the low side compared to the rest of the industry. ARR is outperformed by 73.13% of its industry peers.
Industry RankSector Rank
ROA -0.25%
ROE -2.46%
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

The Profit Margin and Operating Margin and Gross Margin are not available for ARR so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
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

0

2. Health

2.1 Basic Checks

ARR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARR has more shares outstanding
ARR has a worse debt/assets ratio than last year.
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 -0.99. 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 -0.99, ARR is not doing good in the industry: 89.55% of the companies in the same industry are doing better.
ARR has a debt to FCF ratio of 48.52. This is a negative value and a sign of low solvency as ARR would need 48.52 years to pay back of all of its debts.
ARR has a Debt to FCF ratio (48.52) which is comparable to the rest of the industry.
A Debt/Equity ratio of 7.72 is on the high side and indicates that ARR has dependencies on debt financing.
ARR has a worse Debt to Equity ratio (7.72) than 76.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.72
Debt/FCF 48.52
Altman-Z -0.99
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 0.02. This is a bad value and indicates that ARR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.02, ARR is not doing good in the industry: 97.01% of the companies in the same industry are doing better.
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 97.01% of its industry peers.
Industry RankSector Rank
Current Ratio 0.02
Quick Ratio 0.02
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

6

3. Growth

3.1 Past

ARR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.80%.
ARR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.48% yearly.
ARR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.26%.
The Revenue has been growing by 48.97% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-15.8%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%-28.7%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%372.86%

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.
The Revenue is expected to grow by 119.46% on average over the next years. This is a very strong growth
EPS Next Y-6.04%
EPS Next 2Y-0.97%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue Next Year252.77%
Revenue Next 2Y119.46%
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

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 4.93, the valuation of ARR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of ARR indicates a rather cheap valuation: ARR is cheaper than 97.01% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ARR is valued rather cheaply.
The Price/Forward Earnings ratio is 4.65, which indicates a rather cheap valuation of ARR.
95.52% of the companies in the same industry are more expensive than ARR, based on the Price/Forward Earnings ratio.
ARR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
Industry RankSector Rank
PE 4.93
Fwd PE 4.65
ARR Price Earnings VS Forward Price EarningsARR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARR indicates a rather cheap valuation: ARR is cheaper than 88.06% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.83
EV/EBITDA N/A
ARR Per share dataARR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)0.52
EPS Next 2Y-0.97%
EPS Next 3Y-5.54%

5

5. Dividend

5.1 Amount

ARR has a Yearly Dividend Yield of 17.66%, which is a nice return.
ARR's Dividend Yield is rather good when compared to the industry average which is at 10.79. ARR pays more dividend than 91.04% of the companies in the same industry.
ARR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 17.66%

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-506.69%
EPS Next 2Y-0.97%
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

ARMOUR RESIDENTIAL REIT INC

NYSE:ARR (8/4/2025, 8:04:00 PM)

Premarket: 16.76 -0.04 (-0.24%)

16.8

+0.42 (+2.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-21 2025-10-21/amc
Inst Owners53.26%
Inst Owner Change-0.05%
Ins Owners0.21%
Ins Owner Change4.64%
Market Cap1.54B
Analysts70.91
Price Target17.68 (5.24%)
Short Float %10.4%
Short Ratio3.31
Dividend
Industry RankSector Rank
Dividend Yield 17.66%
Yearly Dividend2.93
Dividend Growth(5Y)1.5%
DP-506.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date08-15 2025-08-15 (0.24)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.36%
Min EPS beat(2)-7.48%
Max EPS beat(2)-3.24%
EPS beat(4)1
Avg EPS beat(4)-7.94%
Min EPS beat(4)-21.46%
Max EPS beat(4)0.42%
EPS beat(8)3
Avg EPS beat(8)-5.05%
EPS beat(12)4
Avg EPS beat(12)-3.72%
EPS beat(16)6
Avg EPS beat(16)-1.86%
Revenue beat(2)0
Avg Revenue beat(2)-32.02%
Min Revenue beat(2)-40.28%
Max Revenue beat(2)-23.76%
Revenue beat(4)0
Avg Revenue beat(4)-58.51%
Min Revenue beat(4)-96.41%
Max Revenue beat(4)-23.76%
Revenue beat(8)0
Avg Revenue beat(8)-73.04%
Revenue beat(12)1
Avg Revenue beat(12)-78.27%
Revenue beat(16)2
Avg Revenue beat(16)-94.15%
PT rev (1m)4%
PT rev (3m)0%
EPS NQ rev (1m)-8.93%
EPS NQ rev (3m)-18.42%
EPS NY rev (1m)-3.24%
EPS NY rev (3m)-6.68%
Revenue NQ rev (1m)-9.87%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-24.4%
Revenue NY rev (3m)-25.96%
Valuation
Industry RankSector Rank
PE 4.93
Fwd PE 4.65
P/S 2.7
P/FCF 5.83
P/OCF 5.83
P/B 0.93
P/tB 0.93
EV/EBITDA N/A
EPS(TTM)3.41
EY20.3%
EPS(NY)3.61
Fwd EY21.48%
FCF(TTM)2.88
FCFY17.16%
OCF(TTM)2.88
OCFY17.16%
SpS6.22
BVpS18.12
TBVpS18.12
PEG (NY)N/A
PEG (5Y)0.52
Profitability
Industry RankSector Rank
ROA -0.25%
ROE -2.46%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 46.32%
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 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 7.72
Debt/FCF 48.52
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 0.02
Quick Ratio 0.02
Altman-Z -0.99
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)-15.8%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%-28.7%
EPS Next Y-6.04%
EPS Next 2Y-0.97%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue 1Y (TTM)16.26%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%372.86%
Revenue Next Year252.77%
Revenue Next 2Y119.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y74.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.58%
FCF growth 3Y181.37%
FCF growth 5YN/A
OCF growth 1Y8.58%
OCF growth 3Y181.37%
OCF growth 5YN/A