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ARMOUR Residential REIT

DB:2AR1
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2AR1
DB
$1B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

ARMOUR Residential REIT, Inc. invests in residential mortgage backed securities in the United States. The last earnings update was 66 days ago. More info.


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2AR1 Share Price and Events
7 Day Returns
0.9%
DB:2AR1
-0.2%
Global Mortgage REITs
1.8%
DE Market
1 Year Returns
-4.1%
DB:2AR1
1.5%
Global Mortgage REITs
-6%
DE Market
2AR1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ARMOUR Residential REIT (2AR1) 0.9% 2.9% -2.6% -4.1% -6.9% -28.3%
Global Mortgage REITs -0.2% -0.3% 1.5% 1.5% 11.3% -7.8%
DE Market 1.8% 4.6% 7.4% -6% 10.1% 15.3%
1 Year Return vs Industry and Market
  • 2AR1 underperformed the Mortgage REITs industry which returned 1.5% over the past year.
  • 2AR1 outperformed the Market in Germany which returned -6% over the past year.
Price Volatility
2AR1
Industry
5yr Volatility vs Market

2AR1 Value

 Is ARMOUR Residential REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ARMOUR Residential REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ARMOUR Residential REIT.

DB:2AR1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $20.75 * 13%
$2.70
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $20.75
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:2AR1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.288 (1 + (1- 21%) (597.73%))
1.433
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.43
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.433 * 5.96%)
8.77%

Discounted Cash Flow Calculation for DB:2AR1 using Excess Returns Model Model

The calculations below outline how an intrinsic value for ARMOUR Residential REIT is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:2AR1 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13% – 8.77%) * $20.75)
$0.88
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.88 / (8.77% - 0.23%)
$10.27
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $20.75 + $10.27
$31.02
DB:2AR1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:2AR1 represents 0.88563x of NYSE:ARR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88563x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 31.02 x 0.88563
€27.47
Value per share (EUR) From above. €27.47
Current discount Discount to share price of €17.50
= -1 x (€17.50 - €27.47) / €27.47
36.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ARMOUR Residential REIT is available for.
Intrinsic value
36%
Share price is €17.5 vs Future cash flow value of €27.47
Current Discount Checks
For ARMOUR Residential REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ARMOUR Residential REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ARMOUR Residential REIT's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ARMOUR Residential REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ARMOUR Residential REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:2AR1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-2.92
NYSE:ARR Share Price ** NYSE (2019-04-18) in USD $19.76
Global Mortgage REITs Industry PE Ratio Median Figure of 22 Publicly-Listed Mortgage REITs Companies 11.42x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.59x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ARMOUR Residential REIT.

DB:2AR1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ARR Share Price ÷ EPS (both in USD)

= 19.76 ÷ -2.92

-6.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ARMOUR Residential REIT is loss making, we can't compare its value to the Global Mortgage REITs industry average.
  • ARMOUR Residential REIT is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does ARMOUR Residential REIT's expected growth come at a high price?
Raw Data
DB:2AR1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -6.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
76.3%per year
Global Mortgage REITs Industry PEG Ratio Median Figure of 19 Publicly-Listed Mortgage REITs Companies 1.03x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ARMOUR Residential REIT, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ARMOUR Residential REIT's assets?
Raw Data
DB:2AR1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $21.01
NYSE:ARR Share Price * NYSE (2019-04-18) in USD $19.76
Global Mortgage REITs Industry PB Ratio Median Figure of 36 Publicly-Listed Mortgage REITs Companies 0.99x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.84x
DB:2AR1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ARR Share Price ÷ Book Value per Share (both in USD)

= 19.76 ÷ 21.01

0.94x

* Primary Listing of ARMOUR Residential REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ARMOUR Residential REIT is good value based on assets compared to the Global Mortgage REITs industry average.
X
Value checks
We assess ARMOUR Residential REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. ARMOUR Residential REIT has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2AR1 Future Performance

 How is ARMOUR Residential REIT expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
76.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ARMOUR Residential REIT expected to grow at an attractive rate?
  • ARMOUR Residential REIT's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • ARMOUR Residential REIT's earnings growth is expected to exceed the Germany market average.
  • ARMOUR Residential REIT's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:2AR1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:2AR1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 76.3%
DB:2AR1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 58.4%
Global Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 25.4%
Global Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 18.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:2AR1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:2AR1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 163 105 1
2020-12-31 162 119 2
2019-12-31 158 116 2
DB:2AR1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 -69 75 -123
2018-09-30 215 61 160
2018-06-30 194 68 140
2018-03-31 210 115 157
2017-12-31 217 110 165
2017-09-30 239 65 189
2017-06-30 331 101 280
2017-03-31 316 0 271
2016-12-31 -14 -203 -61
2016-09-30 10 -114 -37
2016-06-30 -330 -118 -378
2016-03-31 -147 -44 -201

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ARMOUR Residential REIT's earnings are expected to grow significantly at over 20% yearly.
  • ARMOUR Residential REIT's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:2AR1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from ARMOUR Residential REIT Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2AR1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.63 2.63 2.63 1.00
2020-12-31 2.32 2.50 2.15 2.00
2019-12-31 2.29 2.44 2.15 2.00
DB:2AR1 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -2.92
2018-09-30 3.82
2018-06-30 3.36
2018-03-31 3.88
2017-12-31 4.22
2017-09-30 4.98
2017-06-30 7.61
2017-03-31 7.38
2016-12-31 -1.67
2016-09-30 -1.00
2016-06-30 -9.66
2016-03-31 -4.91

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ARMOUR Residential REIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ARMOUR Residential REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ARMOUR Residential REIT has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2AR1 Past Performance

  How has ARMOUR Residential REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ARMOUR Residential REIT's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ARMOUR Residential REIT does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare ARMOUR Residential REIT's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare ARMOUR Residential REIT's 1-year growth to the Global Mortgage REITs industry average as it is not currently profitable.
Earnings and Revenue History
ARMOUR Residential REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ARMOUR Residential REIT Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2AR1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 -68.94 -123.00 36.66
2018-09-30 214.50 160.13 37.01
2018-06-30 193.62 140.46 35.84
2018-03-31 209.77 156.96 35.25
2017-12-31 216.99 165.27 34.29
2017-09-30 239.41 188.58 33.09
2017-06-30 331.03 279.58 34.74
2017-03-31 316.25 271.05 34.90
2016-12-31 -14.50 -61.14 34.59
2016-09-30 9.77 -37.44 34.89
2016-06-30 -330.23 -377.68 33.38
2016-03-31 -147.24 -200.83 32.78
2015-12-31 5.74 -46.83 33.39
2015-09-30 -255.16 -307.79 33.92
2015-06-30 20.10 -32.15 33.92
2015-03-31 -247.90 -300.36 34.43
2014-12-31 -141.45 -194.67 35.11
2014-09-30 -538.81 -592.27 35.40
2014-06-30 -822.14 -876.31 36.25
2014-03-31 -270.72 -324.73 36.21
2013-12-31 -149.90 -201.26 35.04
2013-09-30 504.76 458.17 33.24
2013-06-30 787.17 746.16 30.46
2013-03-31 287.51 254.91 27.00
2012-12-31 246.61 220.34 23.60
2012-09-30 150.25 129.30 19.48
2012-06-30 56.54 40.69 15.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if ARMOUR Residential REIT has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if ARMOUR Residential REIT has efficiently used its assets last year compared to the Global Mortgage REITs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if ARMOUR Residential REIT improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess ARMOUR Residential REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ARMOUR Residential REIT has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2AR1 Health

 How is ARMOUR Residential REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ARMOUR Residential REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ARMOUR Residential REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • ARMOUR Residential REIT's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ARMOUR Residential REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ARMOUR Residential REIT Company Filings, last reported 3 months ago.

DB:2AR1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,125.31 7,062.16 553.76
2018-09-30 1,208.27 7,224.57 737.31
2018-06-30 1,206.51 6,254.37 659.54
2018-03-31 1,244.97 6,860.60 352.20
2017-12-31 1,326.05 7,563.87 329.65
2017-09-30 1,312.66 7,253.32 335.06
2017-06-30 1,285.12 6,327.44 446.33
2017-03-31 1,137.40 6,516.78 243.34
2016-12-31 1,092.07 6,868.11 315.24
2016-09-30 1,220.32 7,603.89 507.94
2016-06-30 1,139.51 8,260.19 451.33
2016-03-31 1,095.64 10,222.54 260.80
2015-12-31 1,225.17 11,803.78 290.92
2015-09-30 1,419.45 12,951.25 294.95
2015-06-30 1,586.79 13,530.75 395.82
2015-03-31 1,658.11 14,177.05 474.28
2014-12-31 1,749.29 14,019.31 555.08
2014-09-30 1,836.00 15,531.51 766.27
2014-06-30 1,950.88 14,464.05 603.03
2014-03-31 1,867.77 15,246.34 899.20
2013-12-31 1,901.23 13,254.30 1,005.47
2013-09-30 2,153.45 15,027.54 887.17
2013-06-30 2,215.60 19,864.15 1,146.19
2013-03-31 2,708.80 25,020.13 875.42
2012-12-31 2,307.78 18,556.64 776.65
2012-09-30 2,442.95 20,025.39 735.38
2012-06-30 1,358.09 12,269.10 336.34
  • ARMOUR Residential REIT's level of debt (627.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (698.4% vs 627.6% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making ARMOUR Residential REIT has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making ARMOUR Residential REIT has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by % per year.
X
Financial health checks
We assess ARMOUR Residential REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ARMOUR Residential REIT has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2AR1 Dividends

 What is ARMOUR Residential REIT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
11.54%
Current annual income from ARMOUR Residential REIT dividends. Estimated to be 11.54% next year.
If you bought €2,000 of ARMOUR Residential REIT shares you are expected to receive €231 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ARMOUR Residential REIT's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • ARMOUR Residential REIT's dividend is above the markets top 25% of dividend payers in Germany (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:2AR1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Global Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 10.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:2AR1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.28 2.00
2020-12-31 2.28 3.00
2019-12-31 2.28 3.00
DB:2AR1 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-27 2.280 11.560
2019-02-14 2.280 11.466
2019-01-28 2.280 10.755
2018-12-26 2.280 10.878
2018-11-26 2.280 10.607
2018-10-24 2.280 10.387
2018-09-24 2.280 10.573
2018-08-27 2.280 9.757
2018-07-25 2.280 9.674
2018-06-25 2.280 9.853
2018-05-29 2.280 9.886
2018-04-25 2.280 10.010
2018-03-26 2.280 9.858
2018-02-26 2.280 10.170
2018-01-30 2.280 9.998
2017-12-26 2.280 9.108
2017-11-27 2.280 8.890
2017-10-25 2.280 9.182
2017-09-25 2.280 8.470
2017-08-28 2.280 8.635
2017-07-26 2.280 8.800
2017-06-26 2.280 9.007
2017-05-25 2.280 8.589
2017-04-26 2.280 9.117
2017-03-29 2.280 9.754
2017-02-23 2.280 10.289
2017-01-25 2.280 10.543
2017-01-03 2.280 10.399
2016-11-03 2.640 11.932
2016-10-26 2.640 11.633
2016-09-26 2.640 11.852
2016-07-29 2.640 11.847
2016-06-29 2.640 12.847
2016-05-02 2.640 13.458
2016-04-04 3.240 15.035
2016-03-01 3.960 19.084
2016-01-28 3.960 20.855
2016-01-04 3.960 20.148
2015-11-05 3.960 18.866
2015-10-26 3.960 19.040
2015-09-25 3.960 18.951
2015-06-18 3.960 18.065
2015-03-25 3.840 15.676
2014-12-22 3.840 14.495
2013-12-18 4.800 14.528
2013-09-18 4.800 14.780
2013-06-13 6.720 19.320
2013-03-13 6.720 14.075
2012-12-17 7.680 14.082
2012-09-14 8.640 15.193
2012-06-14 9.600 16.313
2012-03-07 9.600 17.481
2011-12-16 10.560 18.670
2011-09-20 10.560 19.026
2011-06-14 11.520 19.385
2011-03-14 11.520 19.213
2010-12-10 11.520 18.826
2010-05-25 12.800 22.793
2010-05-13 12.800 20.966
2010-03-30 12.800 19.520

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ARMOUR Residential REIT has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • ARMOUR Residential REIT has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of ARMOUR Residential REIT's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess ARMOUR Residential REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ARMOUR Residential REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ARMOUR Residential REIT has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2AR1 Management

 What is the CEO of ARMOUR Residential REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Zimmer
COMPENSATION $806,420
AGE 61
TENURE AS CEO 9.4 years
CEO Bio

Mr. Jeffrey J. Zimmer, also known as Jeff, serves as Co-Chief Executive Officer, President of ARMOUR Residential REIT, Inc. since November 2009 Mr. Zimmer has been Co-Chief Executive Officer and President of JAVELIN Mortgage Investment Corp. since June 18, 2012. He serves as the Chief Executive Officer of Opteum Inc. and President of Opteum Inc at MortCo TRS, LLC. He served as Chief Financial Officer at ARMOUR Residential REIT, Inc. from November 2009 to September 2012 and served as Secretary at AVELIN Mortgage Investment Corp. until March 2014. He served as Secretary of ARMOUR Residential REIT, Inc. since November 2009 until March 2014. Mr. Zimmer has also served as the Co-Chief Executive Officer of SBBC since January 2015. Mr. Zimmer has significant experience in the mortgage-backed securities market over a 30 plus year period. From September 2003 through March 2008, he was the co-founder and Chief Executive Officer of Bimini Capital Management, Inc., a publicly-traded REIT. Mr. Zimmer was a Co-Managing Member of ARRM from March 2008 until December 2014. Since December 2014, Mr. Zimmer has been the managing member of the entity that acts as one of the general partners of ACM. He served as the Chief Financial Officer of JAVELIN Mortgage Investment Corp. from June 18, 2012 to September 1, 2012 and also served as its Principal Accounting Officer. Mr. Zimmer served as a Managing Director of the Mortgage-Backed and Asset Backed Department at RBS/Greenwich Capital Markets. From 1990 to 2003, he held various positions in the mortgage-backed department at Greenwich Capital. While there, he worked closely with some of the nation's largest mortgage banks, hedge funds and investment management firms on various mortgage-backed securities investments. Mr. Zimmer has sold and researched almost every type of mortgage-backed security in his 19 years in the mortgage business. Mr. Zimmer has negotiated terms on and participated in the completion of dozens of new underwritten public and privately placed mortgage-backed deals for customers of Greenwich Capital. Mr. Zimmer served at Drexel Burnham Lambert in the institutional mortgage-backed sales area from 1984 to 1990. He serves as Chairman of Opteum Inc at MortCo TRS, LLC. Mr. Zimmer has been the Co-Vice Chairman at JAVELIN Mortgage Investment Corp. since June 18, 2012. He has been the Co-Vice Chairman of ARMOUR Residential REIT, Inc. since November 2009. He has been a Director of JAVELIN Mortgage Investment Corp. since June 18, 2012. He has been Director of ARMOUR Residential REIT, Inc. since 2009. He served as Director of Bimini Capital Management Inc., from 2003 to April 2008. Mr. Zimmer was employed at Drexel Burnham Lambert in the institutional mortgage-backed sales area from 1984 until 1990. Mr. Zimmer also is the sole owner and manager of Zimmer Advisors LLC, which advises one client, with total capital of under $20 million, on investing and financing mortgage bonds. Mr. Zimmer holds an MBA in Finance from Babson College in 1983 and a BA in Economics and Speech Communication from Denison University in 1980.

CEO Compensation
  • Jeff's compensation has increased whilst company is loss making.
  • Jeff's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the ARMOUR Residential REIT management team in years:

6.6
Average Tenure
59
Average Age
  • The average tenure for the ARMOUR Residential REIT management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jeff Zimmer

TITLE
Co-CEO, Co-Vice Chairman & President
COMPENSATION
$806K
AGE
61
TENURE
9.4 yrs

Scott Ulm

TITLE
Co-CEO, Co-Vice Chairman & Chief Risk Officer
COMPENSATION
$806K
AGE
60
TENURE
9.4 yrs

Jim Mountain

TITLE
CFO, Treasurer & Secretary
COMPENSATION
$399K
AGE
59
TENURE
6.6 yrs

Mark Gruber

TITLE
COO & Chief Investment Officer
COMPENSATION
$399K
AGE
42
TENURE
5.6 yrs

Gordon Harper

TITLE
VP of Finance & Controller
COMPENSATION
$134K
AGE
51
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the ARMOUR Residential REIT board of directors in years:

9.4
Average Tenure
65
Average Age
  • The tenure for the ARMOUR Residential REIT board of directors is about average.
Board of Directors

Dan Staton

TITLE
Non-Executive Chairman
COMPENSATION
$252K
AGE
65
TENURE
9.4 yrs

Jeff Zimmer

TITLE
Co-CEO, Co-Vice Chairman & President
COMPENSATION
$806K
AGE
61
TENURE
9.4 yrs

Scott Ulm

TITLE
Co-CEO, Co-Vice Chairman & Chief Risk Officer
COMPENSATION
$806K
AGE
60
TENURE
9.4 yrs

Rob Hain

TITLE
Director
COMPENSATION
$353K
AGE
65
TENURE
9.4 yrs

Stewart Paperin

TITLE
Director
COMPENSATION
$372K
AGE
70
TENURE
9.4 yrs

Jack Hollihan

TITLE
Director
COMPENSATION
$357K
AGE
68
TENURE
9.4 yrs

Tom Guba

TITLE
Lead Independent Director
COMPENSATION
$337K
AGE
68
TENURE
5.1 yrs

Marc Bell

TITLE
Director
COMPENSATION
$217K
AGE
51
TENURE
9.4 yrs

Carolyn Downey

TITLE
Director
COMPENSATION
$296K
AGE
68
TENURE
5.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by ARMOUR Residential REIT insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
22. Mar 19 Buy Daniel Staton Individual 22. Mar 19 22. Mar 19 12,863 €17.27 €222,197
22. Mar 19 Sell Marc Bell Individual 22. Mar 19 22. Mar 19 -12,863 €17.27 €-222,197
05. Mar 19 Buy James Mountain Individual 05. Mar 19 05. Mar 19 1,500 €17.52 €26,241
13. Nov 18 Sell Robert Hain Individual 09. Nov 18 09. Nov 18 -2,500 €19.86 €-49,658
10. Aug 18 Sell Robert Hain Individual 07. Aug 18 07. Aug 18 -1,500 €20.33 €-30,500
29. Jun 18 Buy James Mountain Individual 28. Jun 18 28. Jun 18 1,421 €19.73 €28,030
X
Management checks
We assess ARMOUR Residential REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ARMOUR Residential REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2AR1 News

Simply Wall St News

2AR1 Company Info

Description

ARMOUR Residential REIT, Inc. invests in residential mortgage backed securities in the United States. The company is managed by ARMOUR Capital Management LP. 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, as well as unsecured notes and bonds issued by the GSE and the United States treasuries; and money market instruments. The company also invests in other securities backed by residential mortgages for which the payment of principal and interest is not guaranteed by a GSE or government agency. ARMOUR Residential REIT, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 2008 and is based in Vero Beach, Florida.

Details
Name: ARMOUR Residential REIT, Inc.
2AR1
Exchange: DB
Founded: 2008
$1,050,578,675
59,791,877
Website: http://www.armourreit.com
Address: ARMOUR Residential REIT, Inc.
3001 Ocean Drive,
Suite 201,
Vero Beach,
Florida, 32963,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ARR Common Stock New York Stock Exchange US USD 09. Nov 2009
DB 2AR1 Common Stock Deutsche Boerse AG DE EUR 09. Nov 2009
LSE 0HHU Common Stock London Stock Exchange GB USD 09. Nov 2009
NYSE ARR.PRA PFD A 8.25% New York Stock Exchange US USD 05. Jun 2012
NYSE ARR.PRB PFD SER B 7.875% New York Stock Exchange US USD 11. Feb 2013
Number of employees
Current staff
Staff numbers
0
ARMOUR Residential REIT employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 21:28
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.