ARMOUR RESIDENTIAL REIT INC (ARR) Fundamental Analysis & Valuation

NYSE:ARR • US0423157058

Current stock price

17.67 USD
+0.11 (+0.63%)
At close:
17.7 USD
+0.03 (+0.17%)
Pre-Market:

This ARR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. ARR Profitability Analysis

1.1 Basic Checks

  • ARR had positive earnings in the past year.
  • ARR had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: ARR reported negative net income in multiple years.
  • In the past 5 years ARR always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M -200M 300M

1.2 Ratios

  • ARR has a Return On Assets of 1.48%. This is amongst the best in the industry. ARR outperforms 91.18% of its industry peers.
  • Looking at the Return On Equity, with a value of 13.74%, ARR belongs to the top of the industry, outperforming 98.53% of the companies in the same industry.
  • ARR has a better Return On Invested Capital (1.24%) than 89.71% of its industry peers.
Industry RankSector Rank
ROA 1.48%
ROE 13.74%
ROIC 1.24%
ROA(3y)0.21%
ROA(5y)-0.37%
ROE(3y)1.84%
ROE(5y)-3.18%
ROIC(3y)N/A
ROIC(5y)N/A
ARR Yearly ROA, ROE, ROICARR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • ARR has a Profit Margin of 30.47%. This is in the better half of the industry: ARR outperforms 79.41% of its industry peers.
  • ARR's Profit Margin has declined in the last couple of years.
  • With a decent Operating Margin value of 31.65%, ARR is doing good in the industry, outperforming 77.94% of the companies in the same industry.
  • ARR's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 33.21%, ARR perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ARR has declined.
Industry RankSector Rank
OM 31.65%
PM (TTM) 30.47%
GM 33.21%
OM growth 3Y-54.51%
OM growth 5Y-29.33%
PM growth 3Y-56.11%
PM growth 5Y-30.56%
GM growth 3Y-52.94%
GM growth 5Y-25.57%
ARR Yearly Profit, Operating, Gross MarginsARR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 -200

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0

2. ARR Health Analysis

2.1 Basic Checks

  • ARR has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ARR has been increased compared to 5 years ago.
  • ARR has a worse debt/assets ratio than last year.
ARR Yearly Shares OutstandingARR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
ARR Yearly Total Debt VS Total AssetsARR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • ARR has an Altman-Z score of -0.91. This is a bad value and indicates that ARR is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of ARR (-0.91) is worse than 80.88% of its industry peers.
  • The Debt to FCF ratio of ARR is 144.46, which is on the high side as it means it would take ARR, 144.46 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ARR (144.46) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 7.94 is on the high side and indicates that ARR has dependencies on debt financing.
  • ARR has a Debt to Equity ratio of 7.94. This is in the lower half of the industry: ARR underperforms 69.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.94
Debt/FCF 144.46
Altman-Z -0.91
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

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 88.24% of its industry peers.
  • A Quick Ratio of 0.01 indicates that ARR may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.01, ARR is doing worse than 88.24% 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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4

3. ARR Growth Analysis

3.1 Past

  • ARR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.85%.
  • ARR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.85% yearly.
  • ARR shows a strong growth in Revenue. In the last year, the Revenue has grown by 80.96%.
EPS 1Y (TTM)-16.85%
EPS 3Y-19.2%
EPS 5Y-13.85%
EPS Q2Q%-8.97%
Revenue 1Y (TTM)80.96%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%296.85%

3.2 Future

  • Based on estimates for the next years, ARR will show a small growth in Earnings Per Share. The EPS will grow by 1.81% on average per year.
  • ARR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 48.70% yearly.
EPS Next Y1.66%
EPS Next 2Y1.21%
EPS Next 3Y1.81%
EPS Next 5YN/A
Revenue Next Year122.49%
Revenue Next 2Y48.7%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
ARR Yearly Revenue VS EstimatesARR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 200M 400M 600M 800M 1B
ARR Yearly EPS VS EstimatesARR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20

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5

4. ARR Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 5.77, the valuation of ARR can be described as very cheap.
  • 95.59% of the companies in the same industry are more expensive than ARR, based on the Price/Earnings ratio.
  • ARR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.86.
  • ARR is valuated cheaply with a Price/Forward Earnings ratio of 5.68.
  • Based on the Price/Forward Earnings ratio, ARR is valued cheaper than 94.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 37.39, ARR is valued rather cheaply.
Industry RankSector Rank
PE 5.77
Fwd PE 5.68
ARR Price Earnings VS Forward Price EarningsARR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • The rest of the industry has a similar Price/Free Cash Flow ratio as ARR.
Industry RankSector Rank
P/FCF 17.47
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

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.48
PEG (5Y)N/A
EPS Next 2Y1.21%
EPS Next 3Y1.81%

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6

5. ARR Dividend Analysis

5.1 Amount

  • ARR has a Yearly Dividend Yield of 16.40%, which is a nice return.
  • ARR's Dividend Yield is rather good when compared to the industry average which is at 12.92. ARR pays more dividend than 89.71% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ARR pays a better dividend.
Industry RankSector Rank
Dividend Yield 16.4%

5.2 History

  • On average, the dividend of ARR grows each year by 18.77%, which is quite nice.
  • ARR has paid a dividend for at least 10 years, which is a reliable track record.
  • ARR has decreased its dividend recently.
Dividend Growth(5Y)18.77%
Div Incr Years0
Div Non Decr Years1
ARR Yearly Dividends per shareARR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60

5.3 Sustainability

  • 91.25% of the earnings are spent on dividend by ARR. This is not a sustainable payout ratio.
  • The dividend of ARR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP91.25%
EPS Next 2Y1.21%
EPS Next 3Y1.81%
ARR Yearly Income VS Free CF VS DividendARR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M -200M 300M
ARR Dividend Payout.ARR Dividend Payout, showing the Payout Ratio.ARR Dividend Payout.PayoutRetained Earnings

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ARR Fundamentals: All Metrics, Ratios and Statistics

ARMOUR RESIDENTIAL REIT INC

NYSE:ARR (4/10/2026, 8:06:31 PM)

Premarket: 17.7 +0.03 (+0.17%)

17.67

+0.11 (+0.63%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-18
Earnings (Next)04-21
Inst Owners54.52%
Inst Owner Change0.01%
Ins Owners0.17%
Ins Owner Change4.07%
Market Cap2.17B
Revenue(TTM)1.02B
Net Income(TTM)310.65M
Analysts74
Price Target18.87 (6.79%)
Short Float %10.04%
Short Ratio3.38
Dividend
Industry RankSector Rank
Dividend Yield 16.4%
Yearly Dividend3.25
Dividend Growth(5Y)18.77%
DP91.25%
Div Incr Years0
Div Non Decr Years1
Ex-Date04-15
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.73%
Min EPS beat(2)-9.29%
Max EPS beat(2)-0.16%
EPS beat(4)0
Avg EPS beat(4)-5.04%
Min EPS beat(4)-9.29%
Max EPS beat(4)-0.16%
EPS beat(8)2
Avg EPS beat(8)-6.1%
EPS beat(12)3
Avg EPS beat(12)-4.72%
EPS beat(16)6
Avg EPS beat(16)-2.23%
Revenue beat(2)0
Avg Revenue beat(2)-25.68%
Min Revenue beat(2)-35.79%
Max Revenue beat(2)-15.56%
Revenue beat(4)0
Avg Revenue beat(4)-28.85%
Min Revenue beat(4)-40.28%
Max Revenue beat(4)-15.56%
Revenue beat(8)0
Avg Revenue beat(8)-58.05%
Revenue beat(12)0
Avg Revenue beat(12)-66.72%
Revenue beat(16)1
Avg Revenue beat(16)-97.44%
PT rev (1m)0%
PT rev (3m)5.71%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)2.1%
EPS NY rev (3m)-6.84%
Revenue NQ rev (1m)11.59%
Revenue NQ rev (3m)21.98%
Revenue NY rev (1m)9.51%
Revenue NY rev (3m)25.23%
Valuation
Industry RankSector Rank
PE 5.77
Fwd PE 5.68
P/S 2.13
P/FCF 17.47
P/OCF 17.47
P/B 0.96
P/tB 0.96
EV/EBITDA N/A
EPS(TTM)3.06
EY17.32%
EPS(NY)3.11
Fwd EY17.6%
FCF(TTM)1.01
FCFY5.73%
OCF(TTM)1.01
OCFY5.73%
SpS8.3
BVpS18.42
TBVpS18.42
PEG (NY)3.48
PEG (5Y)N/A
Graham Number35.61
Profitability
Industry RankSector Rank
ROA 1.48%
ROE 13.74%
ROCE 12.5%
ROIC 1.24%
ROICexc 1.25%
ROICexgc 1.28%
OM 31.65%
PM (TTM) 30.47%
GM 33.21%
FCFM 12.18%
ROA(3y)0.21%
ROA(5y)-0.37%
ROE(3y)1.84%
ROE(5y)-3.18%
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 3Y-54.51%
OM growth 5Y-29.33%
PM growth 3Y-56.11%
PM growth 5Y-30.56%
GM growth 3Y-52.94%
GM growth 5Y-25.57%
F-Score6
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 7.94
Debt/FCF 144.46
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 0.44
Cash Conversion N/A
Profit Quality 39.98%
Current Ratio 0.01
Quick Ratio 0.01
Altman-Z -0.91
F-Score6
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)-16.85%
EPS 3Y-19.2%
EPS 5Y-13.85%
EPS Q2Q%-8.97%
EPS Next Y1.66%
EPS Next 2Y1.21%
EPS Next 3Y1.81%
EPS Next 5YN/A
Revenue 1Y (TTM)80.96%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%296.85%
Revenue Next Year122.49%
Revenue Next 2Y48.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2341.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-52.5%
FCF growth 3Y0.03%
FCF growth 5YN/A
OCF growth 1Y-52.5%
OCF growth 3Y0.03%
OCF growth 5YN/A

ARMOUR RESIDENTIAL REIT INC / ARR Fundamental Analysis FAQ

What is the fundamental rating for ARR stock?

ChartMill assigns a fundamental rating of 3 / 10 to ARR.


What is the valuation status of ARMOUR RESIDENTIAL REIT INC (ARR) stock?

ChartMill assigns a valuation rating of 5 / 10 to ARMOUR RESIDENTIAL REIT INC (ARR). This can be considered as Fairly Valued.


What is the profitability of ARR stock?

ARMOUR RESIDENTIAL REIT INC (ARR) has a profitability rating of 5 / 10.


Can you provide the expected EPS growth for ARR stock?

The Earnings per Share (EPS) of ARMOUR RESIDENTIAL REIT INC (ARR) is expected to grow by 1.66% in the next year.


Is the dividend of ARMOUR RESIDENTIAL REIT INC sustainable?

The dividend rating of ARMOUR RESIDENTIAL REIT INC (ARR) is 6 / 10 and the dividend payout ratio is 91.25%.