ARMOUR Residential REIT, Inc. Fundamental Analysis (NYSE: ARR-PC)
ARMOUR Residential REIT, Inc. Fundamental Analysis (NYSE: ARR-PC)
ARMOUR Residential REIT, Inc. (NYSE: ARR-PC) shows weak financial fundamentals with a PE ratio of -407.17, profit margin of -5.85%, and ROE of -2.19%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -2.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARR-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakARR-PC struggles to generate sufficient returns from assets.
Valuation Score
ModerateARR-PC shows balanced valuation metrics.
Growth Score
ModerateARR-PC shows steady but slowing expansion.
Financial Health Score
WeakARR-PC carries high financial risk with limited liquidity.
Profitability Score
WeakARR-PC struggles to sustain strong margins.
Key Financial Metrics
Is ARR-PC Expensive or Cheap?
P/E Ratio
ARR-PC trades at -407.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARR-PC's PEG of 2.81 indicates potential overvaluation.
Price to Book
The market values ARMOUR Residential REIT, Inc. at 0.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -33.12 times EBITDA. This is generally considered low.
How Well Does ARR-PC Make Money?
Net Profit Margin
For every $100 in sales, ARMOUR Residential REIT, Inc. keeps $-5.85 as profit after all expenses.
Operating Margin
Core operations generate 1.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.19 in profit for every $100 of shareholder equity.
ROA
ARMOUR Residential REIT, Inc. generates $-0.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ARMOUR Residential REIT, Inc. generates strong operating cash flow of $24.22M, reflecting robust business health.
Free Cash Flow
ARMOUR Residential REIT, Inc. generates strong free cash flow of $24.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.16 in free cash annually.
FCF Yield
ARR-PC converts 26.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-407.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.42
vs 25 benchmark
How ARR-PC Stacks Against Its Sector Peers
| Metric | ARR-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -407.17 | 25.26 | Better (Cheaper) |
| ROE | -2.19% | 722.00% | Weak |
| Net Margin | -5.85% | 2077.00% | Weak |
| Debt/Equity | 8.24 | -37.25 (disorted) | Distorted |
| Current Ratio | 0.03 | 91.70 | Weak Liquidity |
| ROA | -0.23% | 270.00% | Weak |
ARR-PC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ARMOUR Residential REIT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT