ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARR - US0423157058 - REIT
17.44 USD
-0.08 (-0.46%)
17.44 USD
0 (0%)
ARR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 69 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.
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
Looking at the Return On Assets, with a value of 0.27%, ARR is in line with its industry, outperforming 43.48% of the companies in the same industry.
ARR's Return On Equity of 2.47% is in line compared to the rest of the industry. ARR outperforms 44.93% of its industry peers.
The Return On Invested Capital of ARR (0.27%) is worse than 68.12% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 7.37%, ARR is in line with its industry, outperforming 56.52% of the companies in the same industry.
ARR has a Operating Margin of 9.06%. This is comparable to the rest of the industry: ARR outperforms 46.38% of its industry peers.
ARR has a Gross Margin of 11.18%. This is amonst the worse of the industry: ARR underperforms 85.51% of its industry peers.
ARR's Gross Margin has declined in the last couple of years.
| 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
Compared to 1 year ago, ARR has more shares outstanding
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 -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 92.75% of the companies in the same industry.
The Debt to FCF ratio of ARR is 92.46, which is on the high side as it means it would take ARR, 92.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 92.46, ARR is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
A Debt/Equity ratio of 7.78 is on the high side and indicates that ARR has dependencies on debt financing.
ARR has a Debt to Equity ratio of 7.78. This is in the lower half of the industry: ARR underperforms 62.32% 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's Current ratio of 0.02 is on the low side compared to the rest of the industry. ARR is outperformed by 86.96% of its industry peers.
A Quick Ratio of 0.02 indicates that ARR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.02, ARR is doing worse than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
ARR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.16%.
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.
The Revenue has been growing slightly by 0.39% in the past year.
The Revenue has been growing by 48.97% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to decrease by -5.54% on average over the next years.
Based on estimates for the next years, ARR will show a very strong growth in Revenue. The Revenue will grow by 122.74% on average per year.
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
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
With a Price/Earnings ratio of 5.57, the valuation of ARR can be described as very cheap.
Based on the Price/Earnings ratio, ARR is valued cheaper than 92.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARR to the average of the S&P500 Index (26.37), we can say ARR is valued rather cheaply.
The Price/Forward Earnings ratio is 5.16, which indicates a rather cheap valuation of ARR.
Based on the Price/Forward Earnings ratio, ARR is valued cheaper than 91.30% of the companies in the same industry.
ARR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 5.16 |
4.2 Price Multiples
71.01% of the companies in the same industry are more expensive than ARR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| 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)0.59
EPS Next 2Y-4.16%
EPS Next 3Y-5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.53%, ARR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.00, ARR pays a better dividend. On top of this ARR pays more dividend than 86.96% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.53% |
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
467.46% of the earnings are spent on dividend by ARR. 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%
17.44
-0.08 (-0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners40.58%
Inst Owner Change47.06%
Ins Owners0.16%
Ins Owner Change5.61%
Market Cap1.95B
Revenue(TTM)712.60M
Net Income(TTM)52.54M
Analysts50
Price Target17.34 (-0.57%)
Short Float %9.54%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.53% |
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)-1.92%
PT rev (3m)-1.92%
EPS NQ rev (1m)4.17%
EPS NQ rev (3m)9.29%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)-5.49%
Revenue NQ rev (3m)5.15%
Revenue NY rev (1m)-14.24%
Revenue NY rev (3m)-19.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 5.16 | ||
| P/S | 2.74 | ||
| P/FCF | 10.9 | ||
| P/OCF | 10.9 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.13
EY17.95%
EPS(NY)3.38
Fwd EY19.38%
FCF(TTM)1.6
FCFY9.18%
OCF(TTM)1.6
OCFY9.18%
SpS6.37
BVpS19.02
TBVpS19.02
PEG (NY)N/A
PEG (5Y)0.59
Graham Number36.6
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 2 / 10.
Can you provide the PE and PB ratios for ARR stock?
The Price/Earnings (PE) ratio for ARMOUR RESIDENTIAL REIT INC (ARR) is 5.57 and the Price/Book (PB) ratio is 0.92.
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.