ARMOUR RESIDENTIAL REIT INC (ARR)
US0423157058 - REIT
Overall ARR gets a fundamental rating of 3 out of 10. We evaluated ARR against 64 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 growing strongly while it is still valued neutral. This is a good combination!
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.
The reported operating cash flow has been mixed in the past 5 years: ARR reported negative operating cash flow in multiple years.
1.2 Ratios
ARR has a worse Return On Assets (-0.65%) than 71.88% of its industry peers.
ARR's Return On Equity of -6.29% is on the low side compared to the rest of the industry. ARR is outperformed by 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.65% | ||
| ROE | -6.29% | ||
| ROIC | N/A |
ROA(3y)-1.05%
ROA(5y)-1.84%
ROE(3y)-9.23%
ROE(5y)-14.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ARR does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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
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.
The debt/assets ratio for ARR is higher compared to a year ago.
2.2 Solvency
ARR has an Altman-Z score of -1.06. This is a bad value and indicates that ARR is not financially healthy and even has some risk of bankruptcy.
ARR has a worse Altman-Z score (-1.06) than 95.31% of its industry peers.
The Debt to FCF ratio of ARR is 72.64, which is on the high side as it means it would take ARR, 72.64 years of fcf income to pay off all of its debts.
ARR has a Debt to FCF ratio of 72.64. This is comparable to the rest of the industry: ARR outperforms 45.31% of its industry peers.
ARR has a Debt/Equity ratio of 7.59. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARR (7.59) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.59 | ||
| Debt/FCF | 72.64 | ||
| Altman-Z | -1.06 |
ROIC/WACCN/A
WACCN/A
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.
ARR's Current ratio of 0.02 is on the low side compared to the rest of the industry. ARR is outperformed by 87.50% of its industry peers.
A Quick Ratio of 0.02 indicates that ARR may have some problems paying its short term obligations.
ARR's Quick ratio of 0.02 is on the low side compared to the rest of the industry. ARR is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
The earnings per share for ARR have decreased strongly by -19.83% in the last year.
ARR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.42% yearly.
ARR shows a strong growth in Revenue. In the last year, the Revenue has grown by 847.04%.
ARR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.78% yearly.
EPS 1Y (TTM)-19.83%
EPS 3Y53.33%
EPS 5Y12.42%
EPS growth Q2Q-20.74%
Revenue 1Y (TTM)847.04%
Revenue growth 3YN/A
Revenue growth 5Y38.78%
Revenue growth Q2Q128.35%
3.2 Future
ARR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.63% yearly.
Based on estimates for the next years, ARR will show a very strong growth in Revenue. The Revenue will grow by 131.38% on average per year.
EPS Next Y-9.86%
EPS Next 2Y-5.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-73.33%
Revenue Next 2Y131.38%
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
ARR is valuated cheaply with a Price/Earnings ratio of 3.98.
Based on the Price/Earnings ratio, ARR is valued cheaper than 96.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.92. ARR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.42, 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 95.31% of the companies in the same industry.
ARR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.98 | ||
| Fwd PE | 4.42 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARR is valued a bit cheaper than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as ARR's earnings are expected to decrease with -5.63% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-5.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ARR has a Yearly Dividend Yield of 15.82%, which is a nice return.
ARR's Dividend Yield is rather good when compared to the industry average which is at 13.21. ARR pays more dividend than 81.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ARR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.82% |
5.2 History
On average, the dividend of ARR grows each year by 16.14%, which is quite nice.
ARR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.14%
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-285.56%
EPS Next 2Y-5.63%
EPS Next 3YN/A
ARMOUR RESIDENTIAL REIT INC
NYSE:ARR (4/26/2024, 7:04:00 PM)
After market: 18.57 +0.05 (+0.27%)18.52
+0.31 (+1.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap902.85M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.98 | ||
| Fwd PE | 4.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.65% | ||
| ROE | -6.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-19.83%
EPS 3Y53.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)847.04%
Revenue growth 3YN/A
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y