ARMOUR Residential REIT Inc (ARR) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
ARMOUR Residential REIT Inc stock (ARR) is currently trading at $15.99. ARMOUR Residential REIT Inc PE ratio is 4.69. ARMOUR Residential REIT Inc PS ratio (Price-to-Sales) is 4.90. Analyst consensus price target for ARR is $18.50. WallStSmart rates ARR as Buy.
- ARR PE ratio analysis and historical PE chart
- ARR PS ratio (Price-to-Sales) history and trend
- ARR intrinsic value — DCF, Graham Number, EPV models
- ARR stock price prediction 2025 2026 2027 2028 2029 2030
- ARR fair value vs current price
- ARR insider transactions and insider buying
- Is ARR undervalued or overvalued?
- ARMOUR Residential REIT Inc financial analysis — revenue, earnings, cash flow
- ARR Piotroski F-Score and Altman Z-Score
- ARR analyst price target and Smart Rating
ARMOUR Residential REIT Inc
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ARR Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · ARMOUR Residential REIT Inc (ARR)
ARR trades at a significant discount to its Graham intrinsic value of $144.41, offering a 88% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
ARMOUR Residential REIT Inc (ARR) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book, revenue growth. Overall metrics suggest strong investment potential with favorable risk/reward.
ARMOUR Residential REIT Inc (ARR) Key Strengths (7)
Keeps $94 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Revenue surging 126.10% year-over-year
Keeps $86 of every $100 in revenue as net profit
Strong earnings growth at 23.10% per year
54.54% held by institutions, strong professional interest
Solid profitability: $18 profit per $100 equity
Supporting Valuation Data
ARMOUR Residential REIT Inc (ARR) Areas to Watch (3)
Paying a premium for growth, expensive relative to earnings expansion
Premium valuation at 4.9x annual revenue
Small-cap company with higher risk but more growth potential
ARMOUR Residential REIT Inc (ARR) Detailed Analysis Report
Overall Assessment
This company scores 76/100 in our Smart Analysis, earning a B+ grade. Out of 10 metrics analyzed, 7 register as strengths (avg 9.0/10) while 3 fall into concern territory (avg 4.3/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book, Revenue Growth. Valuation metrics including Price/Book (0.82) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 17.80%, Operating Margin at 93.80%, Profit Margin at 85.50%. Growth metrics are encouraging with Revenue Growth at 126.10%, EPS Growth at 23.10%.
The Bear Case
The primary concerns are PEG Ratio, Price/Sales, Market Cap. Some valuation metrics including PEG Ratio (2.97), Price/Sales (4.90) suggest expensive pricing.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 17.80% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 126.10% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of Operating Margin and Price/Book makes a compelling case at current levels. The key risk is PEG Ratio, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B+ grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ARR Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ARR's Price-to-Sales ratio of 4.90x trades at a deep discount to its historical average of 198.5x (18th percentile). The current valuation is 100% below its historical high of 1855.74x set in Dec 2009, and 252% above its historical low of 1.39x in Jul 2015. Over the past 12 months, the PS ratio has compressed from ~8.0x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for ARMOUR Residential REIT Inc (ARR) · REAL ESTATE › REIT - MORTGAGE
The Big Picture
ARMOUR Residential REIT Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 377M with 126% growth year-over-year. Profit margins are strong at 85.5%, reflecting pricing power and operational efficiency.
Key Findings
Revenue growing at 126% YoY, reaching 377M. This pace significantly outperforms most REIT - MORTGAGE peers.
ROE of 1780.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Growth sustainability: can ARMOUR Residential REIT Inc maintain 126%+ revenue growth, or will competition slow it down?
Dividend sustainability with a current yield of 17.4%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor REIT - MORTGAGE industry trends, competitive moves, and regulatory changes that could impact ARMOUR Residential REIT Inc.
Bottom Line
ARMOUR Residential REIT Inc offers an attractive blend of growth (126% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(36 last 3 months)
| Insider | Type | Shares |
|---|---|---|
HAIN, ROBERT C Director | Sell | -6,833 |
Data sourced from SEC Form 4 filings
Last updated: 8:22:20 AM
About ARMOUR Residential REIT Inc(ARR)
NYSE
REAL ESTATE
REIT - MORTGAGE
USA
ARMOR Residential REIT, Inc. invests in residential mortgage-backed securities (MBS) in the United States. The company is headquartered in Vero Beach, Florida.