ARMOUR Residential REIT Inc (ARR) Stock Analysis
Verdict: AVOID
Extreme dividend yield masks chronic book value erosion and high rate-sensitivity, making total returns highly unfavorable.
Investment score: 39/100
Analysis as of
Is ARMOUR Residential REIT Inc stock worth reviewing? AI model thesis
The model advises avoiding ARR due to chronic capital destruction, excessive leverage (7.54x Debt/Equity), and a 28.07% dividend yield that masks underlying book value decay.
7-factor investment score
- Valuation: 50/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
ARMOUR Residential REIT Inc opportunities and risks
What speaks for ARR
- Discount to Book Value provides upside on spread compression
What speaks against ARR
- Leverage amplification of book value decay
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ARR | 3.6x | 1.6x | 21.1x | 95.5% | 42.7% | 20.2% |
| NLY | 4.6x | 1.9x | 16.7x | 99.3% | 40.5% | -2.3% |
| AGNC | 4.5x | 3.3x | 25.4x | 75.7% | 72.0% | 8.8% |
| RITM | 14.3x | 0.9x | 34.3x | 79.7% | 8.3% | -35.6% |
| STWD | 19.4x | 2.4x | 15.9x | 76.7% | 11.3% | 9.1% |
| DX | 4.2x | 3.1x | 32.1x | 76.4% | 49.2% | 8.7% |
| Peer median | 4.6x | 2.4x | 25.4x | 76.7% | 40.5% | 8.7% |
Frequently asked questions about ARMOUR Residential REIT Inc (ARR)
Is ARR stock a good investment?
The cached TradeMates AI model rates ARMOUR Residential REIT Inc as AVOID with an investment score of 39/100. The model advises avoiding ARR due to chronic capital destruction, excessive leverage (7.54x Debt/Equity), and a 28.07% dividend yield that masks underlying book value decay. This is algorithmic model output, not personal investment advice.
Is ARR stock a buy?
The TradeMates model verdict for ARR is AVOID with an investment score of 39/100. Treat this as a model signal to review, not a personal buy recommendation.