Fundamental analysis: Arbor Realty Trust, Inc. (ABR)

Awarener score: 8.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Poor) and growth (Good), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been growing at a good pace. It's been almost average when measured against peer companies.
Arbor Realty Trust, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks somewhat better than rivals.

Margins score: 8.8

ABR profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly better than rival companies.
Business profit on sales tends to be very good. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain lacking compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still somewhat worse than similar companies.
Profits -before income taxes- are usually huge considering total sales, and remain weak when measured against rivals.
Total net profit tends to be huge when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 5.9

Arbor Realty Trust, Inc. profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
In recent years, earnings -on operations- have been shrinking, which has been worse than most comparable firms.
Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be in a weak position compared to similar stocks.
In past years, profits -before income taxes- grew at an extremely fast speed. It was well ranked against rivals.
In the previous years, growth trend on total net profit has been extremely high, and more than average in relation to peer companies.
Earnings per share have grown at an extremely fast rhythm in past years. It's been in good shape compared to industry peers.

Miscellaneous score: 9.0

ABR managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been slightly worse than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.0

Arbor Realty Trust, Inc. usually gets good returns on the resources it controls. It proves similar to peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 5.2

ABR usually uses almost no genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is non-significant. It stands similar to rival firms.
The company is usually not replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is similar to industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came worse than most competitors.
Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved in good shape compared to similar firms.
The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks worse than most comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
The company uses a lot more funds to reward investors than it can genuinely generate, so they're paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business improves, or rewards won't keep at current pace. It still looks substantially worse when measured against competitors.

Balance Sheet score: 7.1

Arbor Realty Trust, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly worse than rival firms.
Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks weak when measured against rivals.
Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
Usually, sales are mostly on cash. It still ranks encouraging in relation to peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than one month from the purchase to charging customers. It happens to be somewhat better than peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's rather normal in relation to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
Resources exploitation is virtually zero, as the firm hardly reports any sales. It's still somewhat better than peer companies.

Valuation score: 8.3

Arbor Realty Trust, Inc. looks extremely cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands somewhat better than similar companies.
The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still weak when measured against industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains mediocre against peer firms.
In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still a slight improvement compared to peer companies.

Total score: 7.0

Company at a glance: Arbor Realty Trust, Inc. (ABR)

Sector, industry: Real Estate, REIT—Mortgage

Market Cap: 2.29 billions

Revenues TTM: 0.48 billions

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates in two segments, Structured Business and Agency Business. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. The company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.