ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis
NYSE:ARR - New York Stock Exchange, Inc. - US0423157058 - REIT - Currency: USD
Taking everything into account, ARR scores 3 out of 10 in our fundamental rating. 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.
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.
ARR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.09%, ARR is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
The Return On Equity of ARR (-0.80%) is worse than 66.15% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
ARR has a Gross Margin of 1.88%. This is amonst the worse of the industry: ARR underperforms 95.38% of its industry peers.
In the last couple of years the Gross Margin of ARR has declined.
ARR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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
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
ARR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -1.03, we must say that ARR is in the distress zone and has some risk of bankruptcy.
ARR has a Altman-Z score of -1.03. This is amonst the worse of the industry: ARR underperforms 95.38% of its industry peers.
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 in line with its industry peers.
A Debt/Equity ratio of 7.33 is on the high side and indicates that ARR has dependencies on debt financing.
ARR has a worse Debt to Equity ratio (7.33) than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.33 | ||
| Debt/FCF | 46.94 | ||
| Altman-Z | -1.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.01 indicates that ARR may have some problems paying its short term obligations.
ARR's Current ratio of 0.01 is on the low side compared to the rest of the industry. ARR is outperformed by 89.23% of its industry peers.
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.
ARR has a worse Quick ratio (0.01) than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.01 | ||
| Quick Ratio | 0.01 |
3. Growth
3.1 Past
The earnings per share for ARR have decreased by -9.71% 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.
ARR shows a decrease in Revenue. In the last year, the revenue decreased by -3.12%.
ARR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.97% yearly.
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%580.92%
3.2 Future
The Earnings Per Share is expected to decrease by -5.54% on average over the next years.
The Revenue is expected to grow by 132.27% on average over the next years. This is a very strong growth
EPS Next Y-2.9%
EPS Next 2Y-1.05%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue Next Year366.6%
Revenue Next 2Y132.27%
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
The Price/Earnings ratio is 4.34, which indicates a rather cheap valuation of ARR.
Based on the Price/Earnings ratio, ARR is valued cheaper than 96.92% of the companies in the same industry.
ARR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.17.
The Price/Forward Earnings ratio is 4.48, which indicates a rather cheap valuation of ARR.
Based on the Price/Forward Earnings ratio, ARR is valued cheaper than 96.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ARR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 4.48 |
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 89.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| 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)0.46
EPS Next 2Y-1.05%
EPS Next 3Y-5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 18.06%, ARR is a good candidate for dividend investing.
ARR's Dividend Yield is rather good when compared to the industry average which is at 14.38. ARR pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ARR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.06% |
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
5.3 Sustainability
ARR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1339.51%
EPS Next 2Y-1.05%
EPS Next 3Y-5.54%
16.14
+0.07 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners44.51%
Inst Owner Change34.15%
Ins Owners0.24%
Ins Owner Change3.91%
Market Cap1.32B
Analysts70.91
Price Target17 (5.33%)
Short Float %6.74%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.06% |
Yearly Dividend2.93
Dividend Growth(5Y)1.5%
DP-1339.51%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-56.14%
Min Revenue beat(2)-73.6%
Max Revenue beat(2)-38.69%
Revenue beat(4)0
Avg Revenue beat(4)-73.93%
Min Revenue beat(4)-96.41%
Max Revenue beat(4)-38.69%
Revenue beat(8)0
Avg Revenue beat(8)-81.04%
Revenue beat(12)1
Avg Revenue beat(12)-94%
Revenue beat(16)2
Avg Revenue beat(16)-121.04%
PT rev (1m)-3.85%
PT rev (3m)-16.67%
EPS NQ rev (1m)-5.49%
EPS NQ rev (3m)-16.64%
EPS NY rev (1m)-3.55%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)-5.3%
Revenue NQ rev (3m)17.35%
Revenue NY rev (1m)-2.07%
Revenue NY rev (3m)19.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 4.48 | ||
| P/S | 2.32 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.96 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.72
EY23.05%
EPS(NY)3.6
Fwd EY22.32%
FCF(TTM)3.26
FCFY20.17%
OCF(TTM)3.26
OCFY20.17%
SpS6.96
BVpS20.84
TBVpS20.84
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 Y-2.9%
EPS Next 2Y-1.05%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%580.92%
Revenue Next Year366.6%
Revenue Next 2Y132.27%
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