ARMOUR Residential REIT Inc
NYSE:ARR
Intrinsic Value
ARMOUR Residential REIT, Inc. operates as a real estate investment trust, which engages in the investment in business of investing in fixed rate, hybrid adjustable rate and adjustable rate residential... [ Read More ]
The intrinsic value of one
ARR
stock under the Base Case scenario is
90.75
USD.
Compared to the current market price of 18.77 USD,
ARMOUR Residential REIT Inc
is
Undervalued by 79%.
ARMOUR Residential REIT Inc's market capitalization is 916m USD.
ARR stock price is 18.77 USD.
ARR stock price (18.77 USD) is 79% less than its Intrinsic Value (90.75 USD).
ARR. Open DCF Valuation
ARR stock price (18.77 USD) is 79% less than its Relative Value (90.75 USD). Open Relative Valuation
ARR's long-term assets (12B USD) exceed its long-term liabilties (11B USD).
ARR's ROIC (Return on Invested Capital) has decreased in the last 3 years from 5% to -1%.
ARR's ROIC (Return on Invested Capital) for the past 12 months is negative and is equal to -1%.
ARR's ROE (Return on Equity) for the past 12 months is negative and is equal to -7%.
ARR's Revenue has dropped by 847% over the past 12 months.
ARR's ROE (Return on Equity) has significantly decreased in the last 3 years from 28% to -7%.
ARR has negative three-year average ROIC (Return on Invested Capital): -1%. The company is not efficient at using invested capital to generate operating income.
ARR has negative Operating Income for the last twelve months.
ARR has negative Net Income for the last twelve months.
ARR has negative three-year average ROE (Return on Equity): -7%. The company is not efficient at transforming stockholders' equity into net income.
ARR has negative Gross Profit for the last twelve months.
ARR has positive Free Cash Flow for the last twelve months.
ARR's Revenue has been falling by NAN% per year for the last 3 years.
ARR has positive Net Debt. This means that the company has more debt (10B USD) than cash and short-term investments (222m USD).
ARR's short-term liabilties (11B USD) exceed its short-term assets (270m USD).
ARR's D/E (Debt to Equity) is very high and is equal to 7.59.
ARR's Altman Z-Score is very low and is equal to -0.14.
ARR doesn't generate enough operating income (-68m USD) to safely cover interest payments on its debt (607m USD).
Valuation Backtest
ARMOUR Residential REIT Inc
Run backtest to discover the historical profit from buying and selling
ARR
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
ARMOUR Residential REIT Inc
Balance Sheet Decomposition
ARMOUR Residential REIT Inc
| Current Assets | 270.3m |
| Cash & Short-Term Investments | 221.9m |
| Receivables | 47.1m |
| Other Current Assets | 1.2m |
| Non-Current Assets | 12.1B |
| Long-Term Investments | 11.2B |
| Other Non-Current Assets | 914.4m |
| Current Liabilities | 10.9B |
| Accounts Payable | 357m |
| Accrued Liabilities | 31.6m |
| Short-Term Debt | 9.6B |
| Other Current Liabilities | 860.1m |
| Non-Current Liabilities | 176.5m |
| Other Non-Current Liabilities | 176.5m |
Earnings Waterfall
ARMOUR Residential REIT Inc
|
Revenue
|
501.4m
USD
|
|
Cost of Revenue
|
-557.4m
USD
|
|
Gross Profit
|
-56m
USD
|
|
Operating Expenses
|
-12m
USD
|
|
Operating Income
|
-67.9m
USD
|
|
Other Expenses
|
-12m
USD
|
|
Net Income
|
-79.9m
USD
|
Free Cash Flow Analysis
ARMOUR Residential REIT Inc
What is Free Cash Flow?
ARR Profitability Score
Profitability Due Diligence
ARMOUR Residential REIT Inc's profitability score is 47/100. The higher the profitability score, the more profitable the company is.
Score
ARMOUR Residential REIT Inc's profitability score is 47/100. The higher the profitability score, the more profitable the company is.
ARR Solvency Score
Solvency Due Diligence
ARMOUR Residential REIT Inc's solvency score is 8/100. The higher the solvency score, the more solvent the company is.
Score
ARMOUR Residential REIT Inc's solvency score is 8/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ARR Price Targets Summary
ARMOUR Residential REIT Inc
According to Wall Street analysts, the average 1-year price target for
ARR
is 19.38 USD
with a low forecast of 18.18 USD and a high forecast of 21 USD.
Ownership
ARR Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
|
|
| 9 Months |
|
|
|
| 12 Months |
|
|
|
Shareholder Return
ARR Price
ARMOUR Residential REIT Inc
| Average Annual Return | -15.92% |
| Standard Deviation of Annual Returns | 20.3% |
| Max Drawdown | -79% |
| Market Capitalization | 916m USD |
| Shares Outstanding | 49 184 375 |
| Percentage of Shares Shorted | 8.81% |
Company Profile
ARMOUR Residential REIT Inc
Country
Industry
Market Cap
Dividend Yield
Description
ARMOUR Residential REIT, Inc. operates as a real estate investment trust, which engages in the investment in business of investing in fixed rate, hybrid adjustable rate and adjustable rate residential mortgage backed securities. The company is headquartered in Vero Beach, Florida and currently employs 0 full-time employees. The company went IPO on 2007-12-03. The firm and its subsidiaries are managed by ARMOUR Capital Management LP, an investment advisor. The company invests exclusively in residential mortgage-backed securities issued or guaranteed by a United States Government-sponsored entity, such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or guaranteed by the Government National Mortgage Administration, Agency Securities. Its Agency Securities consist primarily of fixed rate loans. The remaining are either backed by hybrid adjustable rate or adjustable-rate loans. From time to time, it may also invest in Interest-Only Securities, United States Treasury Securities and money market instruments. The firm seeks to create shareholder value through investment and risk management, which produces current yield and superior risk adjusted returns over the long term. The firm brings private capital into the mortgage markets.
Contact
IPO
Employees
Officers
The intrinsic value of one
ARR
stock under the Base Case scenario is
90.75
USD.
Compared to the current market price of 18.77 USD,
ARMOUR Residential REIT Inc
is
Undervalued by 79%.
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