ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis
NYSE:ARR - New York Stock Exchange, Inc. - US0423157058 - REIT - Currency: USD
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 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.
Of the past 5 years ARR 4 years had a positive operating cash flow.
1.2 Ratios
ARR has a Return On Assets of -0.09%. This is in the lower half of the industry: ARR underperforms 73.85% of its industry peers.
ARR's Return On Equity of -0.80% is on the low side compared to the rest of the industry. ARR is outperformed by 73.85% 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
Looking at the Gross Margin, with a value of 1.88%, ARR is doing worse than 96.92% of the companies in the same industry.
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 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
ARR has more shares outstanding than it did 1 year ago.
ARR has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of ARR (-1.03) is worse than 92.31% of its industry peers.
The Debt to FCF ratio of ARR is 46.94, which is on the high side as it means it would take ARR, 46.94 years of fcf income to pay off 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.
The Debt to Equity ratio of ARR (7.33) is worse 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 98.46% 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's Quick ratio of 0.01 is on the low side compared to the rest of the industry. ARR is outperformed by 98.46% 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
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 132.27% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 4.45 indicates a rather cheap valuation of ARR.
ARR's Price/Earnings ratio is rather cheap when compared to the industry. ARR is cheaper than 96.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, ARR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.60, the valuation of ARR can be described as very cheap.
ARR's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARR is cheaper than 95.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ARR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.45 | ||
| Fwd PE | 4.6 |
4.2 Price Multiples
ARR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARR is cheaper than 93.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.09 | ||
| 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)0.47
EPS Next 2Y-1.05%
EPS Next 3Y-5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 17.04%, ARR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.22, ARR pays a better dividend. On top of this ARR pays more dividend than 95.38% of the companies listed 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 | 17.04% |
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
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 2Y-1.05%
EPS Next 3Y-5.54%
16.57
+0.37 (+2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners53.26%
Inst Owner Change34.15%
Ins Owners0.21%
Ins Owner Change3.91%
Market Cap1.35B
Analysts70.91
Price Target17 (2.6%)
Short Float %5.86%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.04% |
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)0%
PT rev (3m)-16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)11.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.45 | ||
| Fwd PE | 4.6 | ||
| P/S | 2.38 | ||
| P/FCF | 5.09 | ||
| P/OCF | 5.09 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.72
EY22.45%
EPS(NY)3.6
Fwd EY21.75%
FCF(TTM)3.26
FCFY19.65%
OCF(TTM)3.26
OCFY19.65%
SpS6.96
BVpS20.84
TBVpS20.84
PEG (NY)N/A
PEG (5Y)0.47
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