ARMOUR Residential REIT, Inc.

Valuation Analysis

About the Company

ARMOUR Residential REIT, Inc. invests in residential mortgage-backed securities (MBS) in the United States. Its securities portfolio primarily consists of the United States Government-sponsored entity's (GSE) and the Government National Mortgage Administration's issued or guaranteed securities backed by fixed rate, hybrid adjustable rate, and adjustable-rate home loans; and unsecured notes and bonds issued by the GSE and the United States treasuries, as well as money market instruments. The company has elected to be taxed as a real estate investment trust. ARMOUR Residential REIT, Inc. was incorporated in 2008 and is based in Vero Beach, Florida.

ARMOUR Residential REIT, Inc. Stock at a Glance

ARMOUR Residential REIT, Inc. (ARR) is currently trading at $17.10 with a market capitalization of $2.1B. The trailing P/E ratio stands at 6.87x, with a forward P/E of 5.59x. The 52-week range spans from $13.98 to $19.31; the current price is 11.4% below the yearly high.

💰 Dividend

ARMOUR Residential REIT, Inc. pays an annual dividend of $2.88 per share, representing a yield of 16.84%. The payout ratio stands at 115.66%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

4 analysts rate ARMOUR Residential REIT, Inc. (ARR) on consensus: None. The average price target is $18.38, implying +7.46% from the current price. Analyst price targets range from $18.00 to $19.00.

ARMOUR Residential REIT, Inc.: The Investment Case in Detail

ARMOUR Residential REIT, Inc. (ARR) operates in the Real Estate — specifically REIT - Mortgage — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 100%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

The debt-to-equity ratio of 790.68% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

What to Watch Next

• The forward P/E of 5.59x is meaningfully below the trailing 6.87x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to market-like volatility, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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