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AAIC

Arlington Asset Investment NYSE:AAIC Stock Report

Last Price

US$3.13

Market Cap

US$92.9m

7D

-1.2%

1Y

-18.9%

Updated

07 Aug, 2022

Data

Company Financials +
AAIC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

AAIC Stock Overview

Arlington Asset Investment Corp. (NYSE: AAIC) currently invests primarily in mortgage-related and other assets and has elected to be taxed as a REIT.

Arlington Asset Investment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Arlington Asset Investment
Historical stock prices
Current Share PriceUS$3.13
52 Week HighUS$4.04
52 Week LowUS$2.88
Beta1.5
1 Month Change-2.17%
3 Month Change2.31%
1 Year Change-18.89%
3 Year Change-47.38%
5 Year Change-75.88%
Change since IPO-99.24%

Recent News & Updates

Shareholder Returns

AAICUS Mortgage REITsUS Market
7D-1.2%-3.1%1.0%
1Y-18.9%-19.4%-12.9%

Return vs Industry: AAIC matched the US Mortgage REITs industry which returned -19.3% over the past year.

Return vs Market: AAIC underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is AAIC's price volatile compared to industry and market?
AAIC volatility
AAIC Average Weekly Movement7.7%
Mortgage REITs Industry Average Movement5.6%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: AAIC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AAIC's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198911J. Tonkelhttps://www.arlingtonasset.com

Arlington Asset Investment Corp. (NYSE: AAIC) currently invests primarily in mortgage-related and other assets and has elected to be taxed as a REIT. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.

Arlington Asset Investment Fundamentals Summary

How do Arlington Asset Investment's earnings and revenue compare to its market cap?
AAIC fundamental statistics
Market CapUS$92.86m
Earnings (TTM)-US$9.11m
Revenue (TTM)US$11.79m

7.9x

P/S Ratio

-10.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAIC income statement (TTM)
RevenueUS$11.79m
Cost of RevenueUS$2.16m
Gross ProfitUS$9.63m
Other ExpensesUS$18.74m
Earnings-US$9.11m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)-0.31
Gross Margin81.68%
Net Profit Margin-77.28%
Debt/Equity Ratio318.6%

How did AAIC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AAIC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAIC?

Other financial metrics that can be useful for relative valuation.

AAIC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Book Ratio vs Peers

How does AAIC's PB Ratio compare to its peers?

AAIC PB Ratio vs Peers
The above table shows the PB ratio for AAIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average0.8x
EARN Ellington Residential Mortgage REIT
0.8x148.7%US$110.0m
MITT AG Mortgage Investment Trust
0.6x119.2%US$166.4m
LFT Lument Finance Trust
0.7x49.4%US$133.7m
SACH Sachem Capital
0.9x36.3%US$184.1m
AAIC Arlington Asset Investment
0.5x56.0%US$92.9m

Price-To-Book vs Peers: AAIC is good value based on its Price-To-Book Ratio (0.5x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does AAIC's PE Ratio compare vs other companies in the US Mortgage REITs Industry?

Price-To-Book vs Industry: AAIC is good value based on its Price-To-Book Ratio (0.5x) compared to the US Mortgage REITs industry average (0.9x)


Price to Book Ratio vs Fair Ratio

What is AAIC's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAIC PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.5x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate AAIC's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of AAIC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate AAIC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AAIC's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Arlington Asset Investment forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


56.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAIC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AAIC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AAIC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AAIC's revenue (34.6% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: AAIC's revenue (34.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AAIC's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Arlington Asset Investment performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAIC is currently unprofitable.

Growing Profit Margin: AAIC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AAIC is unprofitable, but has reduced losses over the past 5 years at a rate of 5.7% per year.

Accelerating Growth: Unable to compare AAIC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AAIC is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (4.1%).


Return on Equity

High ROE: AAIC has a negative Return on Equity (-2.83%), as it is currently unprofitable.


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Financial Health

How is Arlington Asset Investment's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AAIC's short term assets ($493.6M) exceed its short term liabilities ($286.6M).

Long Term Liabilities: AAIC's short term assets ($493.6M) exceed its long term liabilities ($416.2M).


Debt to Equity History and Analysis

Debt Level: AAIC's net debt to equity ratio (162.9%) is considered high.

Reducing Debt: AAIC's debt to equity ratio has reduced from 1153.7% to 318.6% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: Whilst unprofitable AAIC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AAIC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 30.6% per year.


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Dividend

What is Arlington Asset Investment current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.60%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAIC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAIC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAIC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAIC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: AAIC is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AAIC has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

J. Tonkel (59 yo)

18.33yrs

Tenure

US$2,418,545

Compensation

Mr. J. Rock Tonkel, Jr., CPA, has been the Chief Executive Officer of Arlington Asset Investment Corp. (formerly, Friedman Billings Ramsey Group Inc.) since June 11, 2014 and has been its President since F...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD2.42M) is above average for companies of similar size in the US market ($USD767.73K).

Compensation vs Earnings: J.'s compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AAIC's management team is seasoned and experienced (7.4 years average tenure).


Board Members

Experienced Board: AAIC's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AAIC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arlington Asset Investment Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Arlington Asset Investment Corp.
  • Ticker: AAIC
  • Exchange: NYSE
  • Founded: 1989
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$92.864m
  • Shares outstanding: 29.66m
  • Website: https://www.arlingtonasset.com

Number of Employees


Location

  • Arlington Asset Investment Corp.
  • Potomac Tower
  • Suite 1900
  • Arlington
  • Virginia
  • 22209
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.