ARMOUR Residential REIT Inc
NYSE:ARR

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ARMOUR Residential REIT Inc Logo
ARMOUR Residential REIT Inc
NYSE:ARR
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Price: 15.95 USD Market Closed
Market Cap: 1.3B USD

Net Margin
ARMOUR Residential REIT Inc

-2.4%
Current
39%
Average
9.7%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
-2.4%
=
Net Income
-13.6m
/
Revenue
569.3m

Net Margin Across Competitors

ARMOUR Residential REIT Inc
Glance View

Market Cap
1.3B USD
Industry
Real Estate

In the ever-evolving landscape of real estate investment trusts (REITs), ARMOUR Residential REIT Inc. carves out a distinct niche, specializing in the investment and management of residential mortgage-backed securities (MBS). Founded in 2008 amidst the turbulence of the financial crisis, ARMOUR set its sights on opportunities that emerge from the complexities of mortgage finance. The company's strategy hinges on its ability to leverage these securities, which are pools of mortgage loans packaged and sold to investors, to generate income. By investing predominantly in government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac, ARMOUR reduces its exposure to credit risk while navigating the interest rate fluctuations that significantly impact MBS prices. Through meticulous analysis and risk management, the firm generates earnings from the spread between the yields on its MBS portfolio and the cost of borrowing. ARMOUR Residential REIT operates in the fluid world of interest rates where its profitability depends heavily on keen interest rate forecasting and management of interest rate risk. The company's management employs a variety of hedging strategies to safeguard against sudden rate hikes that could erode investment values. It earns through the regular cash flows of principal and interest payments from its MBS holdings, allowing it to distribute consistent dividends to shareholders. Over time, investors have watched to see how ARMOUR adapts to market fluctuations, as well as the broader macroeconomic shifts that influence housing finance, positioning itself carefully within a sector marked by its sensitivity to the pulse of economic policy. This dynamic approach underscores ARMOUR’s resilience and adaptability in navigating the intricate landscape of residential real estate finance.

ARR Intrinsic Value
36.73 USD
Undervaluation 57%
Intrinsic Value
Price
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
-2.4%
=
Net Income
-13.6m
/
Revenue
569.3m
What is the Net Margin of ARMOUR Residential REIT Inc?

Based on ARMOUR Residential REIT Inc's most recent financial statements, the company has Net Margin of -2.4%.

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