• Twitter
• Facebook
• Snapchat
• Pinterest
• LinkedIn
• Tumblr

---

Fundamental analysis: ARMOUR Residential REIT, Inc. (ARR)

Awarener score: 5.2

Conclusion

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: 1.0

• Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
• ARMOUR Residential REIT, Inc. business varies wildly, ups and downs could be very frequent. It's very risky. It looks somewhat worse than rivals.

Margins score: 7.3

• ARR profit margins -on goods and services sold- are usually destitute. They stand bottom tier against rival companies.
• Business profit on sales tends to be very poor. It's last-in-rank when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain excellent in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still better than most similar companies.
• Profits -before income taxes- are usually huge considering total sales, and remain top tier when measured against rivals.
• Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 1.0

• ARMOUR Residential REIT, Inc. couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
• In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
• In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
• In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
• In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

• ARR had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against 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: 4.2

• ARMOUR Residential REIT, Inc. usually gets low returns on the resources it controls. It proves last-in-rank when measured against peer firms.
• The company normally gets low proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
• Profitability -in relation to owned resources- is usually lacking. It ranks last-in-rank when measured against competitors.
• In the past, got barely sufficient 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 last-in-rank when measured against comparable enterprises.

Usage of Funds score: 5.8

• ARR usually uses almost no genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is non-significant. It stands last-in-rank when measured against 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 substantially worse when measured against industry peers.
• In the past twelve months it paid outstanding dividends, considering the current stock price. It came better than most competitors.
• In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved close to average when compared to similar firms.
• Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks better than most comparable companies.
• The company has significantly enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains lacking 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 close to average when compared to rivals.
• The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks weak when measured against competitors.

Balance Sheet score: 7.4

• ARMOUR Residential REIT, 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.
• The company has plenty short-term resources to face short-term obligations. There're no liquidity concerns. It turns to be a slight improvement compared to 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 better than rival firms.
• Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks encouraging in relation to rivals.
• For every dollar of short-term obligations, the company has plenty of dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
• For every dollar of short-term obligations, the company has plenty of dollars in cash and equivalents, which is somewhat better than similar enterprises.
• Days of sales outstanding are not known, out of lack of data. It still ranks unknown against peers.
• Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
• We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
• Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
• Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against 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.
• The firm has yet to start reporting any sales. It's still bottom tier against peer companies.

Valuation score: 5.4

• ARMOUR Residential REIT, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank 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 in a very weak position compared to peers.
• In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands slightly better than similar companies.
• The company usually generates plenty more 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 looks to be very attractive. It's still great when measured against industry firms.
• In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up lacking compared to peer ventures.
• The company has substantial more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat worse than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
• Price-to-Sales ratio is currently an incognita. It looks incomparable with rival firms.
• The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains worse than most peer firms.
• In the past twelve months, the operating business lost a lot of money. It happens to be last-in-rank when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a low earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 4.1

---

Awarener score: 5.2

Conclusion

Support us!

We are an independent project. No ads, no suscription, no registration required.

• Donate!