A Business at a Glance
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Armour Residential REIT, Inc.
ARR
$1.5B
Mkt Cap
$16.27
+0.87%
Armour Residential REIT, Inc. (ARR) has a current P/E ratio of 4.9, compared to its historical median P/E of 5.2. The stock is currently considered Fair based on its historical valuation range.
Armour Residential REIT, Inc. (ARR) has a 5-year average return on invested capital (ROIC) of 6.4%. This is below average and may indicate limited pricing power.
Armour Residential REIT, Inc. (ARR) has a market capitalization of $2.0B. It is classified as a mid-cap stock.
Yes, Armour Residential REIT, Inc. (ARR) pays a dividend with a trailing twelve-month yield of 15.09%. The company also returns capital through share buybacks, with a buyback yield of 1.09%.
Based on historical P/E analysis, Armour Residential REIT, Inc. (ARR) appears fair. The current P/E of 4.9 is 5% below its historical median of 5.2. The estimated fair value CAGR (P/E method) is -24.8%.
Armour Residential REIT, Inc. (ARR) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
PART I ARMOUR Residential REIT, Inc. References to “we,” “us,” “our,” or the “Company” are to ARMOUR Residential REIT, Inc. (“ARMOUR”) and its subsidiaries. References to “ACM” are to ARMOUR Capital Management LP, a Delaware limited partnership. ARMOUR owns a 10.8% equity interest in BUCKLER Securities LLC ("BUCKLER"), a Delaware limited liability company and a FINRA-regulated broker-dealer, which is under common control with ACM. Refer to the Glossary of Terms for definitions of capitalized terms and abbreviations used in this report. U.S. dollar and share amounts are presented in thousands, except per share amounts or as otherwise noted. ARMOUR is an externally managed Maryland corporation incorporated in 2008. The Company is managed by ACM, an investment advisor registered with the Securities and Exchange Commission ("SEC") (which registration the Company provides notice of to the state of Florida) (see Note 8 and Note 14 to the consolidated financial statements).
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 193M | 158M | 27M | - | - | 73M |
| Net Income | 228M | 311M | -26M | -80M | -242M | 15M |
| EPS | $1.90 | $3.30 | $-0.51 | $-1.86 | $-51.25 | $1.20 |
| Free Cash Flow | 0 | 124M | 261M | 133M | 124M | 12M |
| ROIC | -0.4% | 54.6% | -2.0% | -0.7% | -21.4% | 1.5% |
| Gross Margin | - | - | - | - | - | 57.6% |
| Debt/Equity | 0.00 | 8.29 | 8.95 | 8.71 | 7.48 | 3.61 |
| Dividends/Share | $2.46 | $2.88 | $2.88 | $5.00 | $30.00 | $7.55 |
| Operating Income | -11M | 953M | -16M | -7.0M | -121M | -5.8M |
| Operating Margin | -5.9% | - | -58.9% | - | - | -7.9% |
| ROE | 9.8% | 17.2% | -2.0% | -6.7% | -21.4% | 1.5% |
| Shares Outstanding | 124M | 94M | 52M | 43M | 5M | 13M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 386M | 306M | 191M | 160M | 129M | 151M | N/A | 73M | N/A | N/A | 27M | 158M | 193M |
| Gross Margin | 92.8% | 91.1% | 86.3% | 83.4% | 78.9% | 80.5% | N/A | 57.6% | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.8M | 2.3M | 2.3M | 2.3M | 3.8M | 3.9M | 5.6M | 6.6M | 5.5M | 4.9M | 4.7M | 3.6M | 3.7M |
| EBIT | 191M | 259M | 12M | 260M | 31M | 23M | -162M | -5.8M | -121M | -7.0M | -16M | 953M | -11M |
| Op. Margin | 49.5% | 84.7% | 6.3% | N/A | 24.2% | 15.0% | N/A | -7.9% | N/A | N/A | -58.9% | N/A | -5.9% |
| Net Income | -195M | -47M | -61M | 165M | -123M | -266M | -225M | 15M | -242M | -80M | -26M | 311M | 228M |
| Net Margin | -50.5% | -15.3% | -32.0% | 103.4% | -95.4% | -175.5% | N/A | 20.9% | N/A | N/A | -98.4% | 196.2% | 118.5% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 10.5% | 17.4% | 1.0% | 21.5% | 2.5% | 1.8% | -18.9% | 1.5% | -21.4% | -0.7% | -2.0% | 54.6% | -0.4% |
| ROE | -10.7% | -3.1% | -5.3% | 13.7% | -10.0% | -20.7% | -18.9% | 1.5% | -21.4% | -6.7% | -2.0% | 17.2% | 9.8% |
| ROA | -1.2% | -0.3% | -0.6% | 2.0% | -1.4% | -2.4% | -2.4% | 0.3% | -3.3% | -0.7% | -0.2% | 1.8% | 1.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 315M | 238M | -203M | 110M | 75M | -41M | -258M | 12M | 124M | 133M | 261M | 124M | 134M |
| Free Cash Flow | 315M | 238M | -203M | 110M | 75M | -41M | -258M | 12M | 124M | 133M | 261M | 124M | 0 |
| Owner Earnings | 314M | 237M | -204M | 109M | 73M | -43M | -262M | 7.0M | 120M | 130M | 258M | 122M | 132M |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 215M | 167M | 111M | 89M | 97M | 124M | 75M | 97M | 142M | 216M | 151M | 271M | 304M |
| Dividend Yield | 661.4% | 73.2% | 53.1% | 30.2% | 30.4% | 31.6% | 25.7% | 29.4% | 160.7% | 33.4% | 19.7% | 19.4% | 15.1% |
| Share Buybacks | 5.8M | 145M | 15M | 0 | 0 | 17M | 777K | 0 | 7.7M | 9.9M | 1.3M | 20M | 22M |
| Buyback Yield | 2.0% | 62.0% | 6.4% | N/A | N/A | 4.2% | 0.3% | N/A | 1.0% | 1.7% | 0.1% | 1.2% | 1.1% |
| Stock-Based Comp | 1.2M | 953K | 881K | 937K | 2.4M | 2.7M | 4.1M | 4.8M | 3.7M | 3.2M | 3.2M | 2.1M | 2.2M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -66M |
| Cash & Equiv. | 495M | 290M | 272M | 265M | 232M | 273M | 172M | 356M | 87M | 222M | 68M | 63M | 66M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 8.31 | 9.66 | 6.31 | 5.73 | 6.52 | 8.24 | 4.89 | 3.61 | 7.48 | 8.71 | 8.95 | 8.29 | 0.00 |
| Interest Coverage | 0.5 | 0.8 | 0.2 | 2.7 | 0.2 | 0.1 | -2.6 | -0.1 | -1.0 | -0.0 | -0.0 | 1.5 | 1.5 |
| Equity | 1.7B | 1.2B | 1.1B | 1.3B | 1.1B | 1.4B | 938M | 1.1B | 1.1B | 1.3B | 1.4B | 2.3B | 2.3B |
| Total Assets | 16.3B | 13.1B | 8.0B | 8.9B | 8.5B | 13.3B | 5.5B | 5.3B | 9.4B | 12.3B | 13.5B | 21.0B | 21.5B |
| Total Liabilities | 14.5B | 11.8B | 6.9B | 7.6B | 7.3B | 11.8B | 4.6B | 4.1B | 8.3B | 11.1B | 12.2B | 18.7B | 19.1B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -1.1B | -1.3B | -1.4B | -1.4B | -1.6B | -2.0B | -2.3B | -529M | -759M | -826M | -841M | -518M | -573M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | -194.40 | -5.45 | -8.35 | 20.85 | -14.60 | -22.95 | -17.85 | 1.20 | -51.25 | -1.86 | -0.51 | 3.30 | 1.90 |
| Owner EPS | 313.51 | 27.62 | -27.90 | 13.77 | 8.64 | -3.75 | -20.79 | 0.54 | 25.50 | 3.02 | 4.99 | 1.30 | 1.07 |
| Book Value | 1,746.88 | 142.59 | 149.15 | 167.29 | 133.58 | 124.17 | 74.47 | 89.33 | 235.66 | 29.59 | 26.32 | 24.02 | 18.90 |
| Cash Flow/Share | 314.67 | 27.73 | -27.78 | 13.89 | 8.93 | -3.52 | -20.46 | 0.92 | 26.29 | 3.09 | 5.06 | 1.32 | 1.85 |
| Dividends/Share | 216.00 | 19.45 | 15.10 | 11.40 | 11.40 | 10.80 | 6.00 | 7.55 | 30.00 | 5.00 | 2.88 | 2.88 | 2.46 |
| Shares Out. | 1.0M | 8.6M | 7.3M | 7.9M | 8.4M | 11.6M | 12.6M | 12.8M | 4.7M | 43.0M | 51.7M | 94.1M | 123.6M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | N/A | 2.0 | N/A | N/A | N/A | 95.9 | N/A | N/A | N/A | 5.2 | 8.6 |
| P/FCF | 0.1 | 1.0 | N/A | 3.0 | 4.1 | N/A | N/A | 26.2 | 0.6 | 4.5 | 3.0 | 12.9 | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | 0.2 | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.8 | 0.7 | 0.5 | 1.3 | 0.7 | 0.9 |
| Price/Sales | 0.8 | 0.7 | 1.1 | 1.9 | 2.5 | 2.6 | N/A | 13.5 | N/A | N/A | 66.0 | 8.9 | 10.4 |
| FCF Yield | 112.3% | 101.8% | -88.9% | 33.8% | 24.5% | -10.0% | -87.5% | 1.3% | 15.9% | 22.1% | 14.3% | 7.7% | N/A |
| Market Cap | 281M | 234M | 229M | 326M | 307M | 407M | 295M | 925M | 780M | 601M | 1.8B | 1.6B | 2.0B |
| Avg. Price | 32.49 | 26.58 | 28.56 | 37.39 | 37.95 | 34.10 | 23.27 | 25.65 | 18.77 | 15.08 | 14.82 | 14.89 | 16.27 |
| Year-End Price | 31.14 | 27.23 | 31.25 | 41.07 | 36.49 | 35.17 | 23.39 | 23.98 | 16.01 | 13.99 | 15.29 | 17.08 | 16.27 |
Armour Residential REIT, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Armour Residential REIT, Inc. trades at 4.9x trailing earnings, compared to its 15-year median P/E of 5.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 12.3x vs a median of 4.1x. The company's 5-year average ROIC is 6.4% with a gross margin of 57.6%. Total shareholder yield (dividends + buybacks) is 16.2%. At current prices, the estimated annualized return to fair value is -15.0%.
Armour Residential REIT, Inc. (ARR) reported annual revenue of $158 million in its most recent fiscal year, based on SEC EDGAR filings.
Armour Residential REIT, Inc. (ARR) has a net profit margin of 196.2%. This is a strong margin indicating high profitability.
Armour Residential REIT, Inc. (ARR) generated $124 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Armour Residential REIT, Inc. (ARR) has a debt-to-equity ratio of 8.29. This indicates higher leverage, which may increase financial risk.
Armour Residential REIT, Inc. (ARR) reported earnings per share (EPS) of $3.30 in its most recent fiscal year.
Armour Residential REIT, Inc. (ARR) has a return on equity (ROE) of 17.2%. This indicates the company generates strong returns for shareholders.
Armour Residential REIT, Inc. (ARR) has a 5-year average gross margin of 57.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for Armour Residential REIT, Inc. (ARR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Armour Residential REIT, Inc. (ARR) has a book value per share of $24.02, based on its most recent annual SEC filing.