(ARR) ARMOUR Residential REIT - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 2.055m USD | Total Return: 25.8% in 12m
Avg Turnover: 50.4M
EPS Trend: 56.1%
Qual. Beats: 0
Rev. Trend: 62.2%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 6.7 → Forward 15.5
Share dilution 58.6% YoY
Below Avwap Earnings
Tailwinds
Idiosyncratic Leader
ARMOUR Residential REIT, Inc. (ARR) is a specialty finance company that invests in residential mortgage-backed securities (MBS) within the United States. Its portfolio is primarily composed of securities issued or guaranteed by U.S. Government-sponsored entities (GSEs) or Ginnie Mae, including fixed-rate and adjustable-rate mortgage loans. The company also holds U.S. Treasuries and money market instruments to manage liquidity and interest rate exposure.
As a mortgage REIT (mREIT), the company’s business model involves using leverage to fund the acquisition of MBS, earning a profit from the net interest margin between the yield on its assets and its borrowing costs. Because it is structured as a REIT, the firm is required by law to distribute at least 90% of its taxable income to shareholders in the form of dividends. Investors can further analyze these yield spreads and leverage ratios on ValueRay. This sector is particularly sensitive to fluctuations in interest rates and the shape of the yield curve, which impact both the valuation of the underlying securities and the cost of short-term financing.
- Net interest margin fluctuates based on Federal Reserve benchmark rate adjustments
- Prepayment speeds on mortgage-backed securities impact long-term asset yield stability
- Leverage ratios and repo market borrowing costs dictate quarterly dividend sustainability
- Agency mortgage-backed security spreads relative to Treasury yields drive book value
- Hedging effectiveness against interest rate volatility determines overall portfolio profitability
| Net Income: 240.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.09 > 1.0 |
| NWC/Revenue: -1.79k% < 20% (prev -2.02k%; Δ 226.0% < -1%) |
| CFO/TA 0.01 > 3% & CFO 134.3m > Net Income 240.5m |
| Net Debt (18.4b) to EBITDA (846.9m): 21.72 < 3 |
| Current Ratio: 0.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (119.6m) vs 12m ago 58.63% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 5.37% > 50% (prev 3.83%; Δ 1.54% > 0%) |
| Interest Coverage Ratio: 1.23 > 6 (EBITDA TTM 846.9m / Interest Expense TTM 684.0m) |
| A: -0.83 (Total Current Assets 155.1m - Total Current Liabilities 17.9b) / Total Assets 21.5b |
| B: -0.16 (Retained Earnings -3.33b / Total Assets 21.5b) |
| C: 0.05 (EBIT TTM 841.5m / Avg Total Assets 18.5b) |
| D: -0.17 (Book Value of Equity -3.33b / Total Liabilities 19.1b) |
| Altman-Z'' = -5.82 = D |
As of May 28, 2026, the stock is trading at USD 17.02 with a total of 1,826,396 shares traded.
Over the past week, the price has changed by +3.72%,
over one month by -2.00%,
over three months by -1.15% and
over the past year by +25.83%.
ARMOUR Residential REIT has received a consensus analysts rating of 3.29. Therefore, it is recommended to hold ARR.
- StrongBuy: 1
- Buy: 0
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 18.4 | 8% |
P/E Trailing = 6.6546
P/E Forward = 15.4799
P/S = 6.91
P/B = 0.8795
P/EG = 2.9673
Revenue TTM = 993.0m USD
EBIT TTM = 841.5m USD
EBITDA TTM = 846.9m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 18.5b USD (from shortTermDebt, last quarter)
Debt = 18.5b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 18.4b USD (calculated: Debt 18.5b - CCE 66.5m)
Enterprise Value = 20.5b USD (2.06b + Debt 18.5b - CCE 66.5m)
Interest Coverage Ratio = 1.23 (Ebit TTM 841.5m / Interest Expense TTM 684.0m)
EV/FCF = 152.3x (Enterprise Value 20.5b / FCF TTM 134.3m)
FCF Yield = 0.66% (FCF TTM 134.3m / Enterprise Value 20.5b)
FCF Margin = 13.52% (FCF TTM 134.3m / Revenue TTM 993.0m)
Net Margin = 24.22% (Net Income TTM 240.5m / Revenue TTM 993.0m)
Gross Margin = unknown ((Revenue TTM 993.0m - Cost of Revenue TTM 42.0m) / Revenue TTM)
Tobins Q-Ratio = 0.95 (Enterprise Value 20.5b / Total Assets 21.5b)
Interest Expense / Debt = 3.70% (Interest Expense 684.0m / Debt 18.5b)
Taxrate = 21.0% (US default 21%)
NOPAT = 664.8m (EBIT 841.5m * (1 - 21.00%))
Current Ratio = 0.01 (Total Current Assets 155.1m / Total Current Liabilities 17.9b)
Debt / Equity = 7.90 (Debt 18.5b / totalStockholderEquity, last quarter 2.34b)
Debt / EBITDA = 21.72 (Net Debt 18.4b / EBITDA 846.9m)
Debt / FCF = 137.0 (Net Debt 18.4b / FCF TTM 134.3m)
Total Stockholder Equity = 2.10b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.30% (Net Income 240.5m / Total Assets 21.5b)
RoE = 4.43% (Net Income TTM 240.5m / Total Stockholder Equity 5.43b)
RoCE = 15.51% (EBIT 841.5m / Capital Employed (Equity 5.43b + L.T.Debt 0.0))
RoIC = 3.03% (NOPAT 664.8m / Invested Capital 22.0b)
WACC = 3.50% (E(2.06b)/V(20.5b) * Re(8.64%) + D(18.5b)/V(20.5b) * Rd(3.70%) * (1-Tc(0.21)))
Discount Rate = 8.64% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 48.42%
[DCF] Terminal Value 73.10% ; FCFF base≈187.0m ; Y1≈164.0m ; Y5≈132.5m
[DCF] Fair Price = N/A (negative equity: EV 2.13b - Net Debt 18.4b = -16.3b; debt exceeds intrinsic value)
EPS Correlation: 56.14 | EPS CAGR: 26.26% | SUE: -0.26 | # QB: 0
Revenue Correlation: 62.22 | Revenue CAGR: 70.37% | SUE: -0.00 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.72 | Chg30d=-4.86% | Revisions=+0% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.73 | Chg30d=-5.75% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=2.93 | Chg30d=-4.25% | Revisions=+14% | GrowthEPS=-4.2% | GrowthRev=+71.1%
EPS next Year (2027-12-31): EPS=3.06 | Chg30d=-2.75% | Revisions=-14% | GrowthEPS=+4.3% | GrowthRev=+29.0%
[Analyst] Revisions Ratio: +14%