Armour Residential Reit (ARR) Fundamental Analysis: Revenue, Earnings & Valuation

3.51 / 10

Netural

ARR's fundamental assessment is weak (3.5/10). Key concerns include an Interest coverage ratio of 15.50, which, while positive, is only moderate, and a Net profit / Total profit ratio of 100%, indicating all profit is net, but historical back-tests for this factor show negative returns. Other factors like Inventory turnover (38.02) and Quick ratio (2.41) are strong, but their positive impact is offset by weaker coverage metrics. The overall fundamental bias is prudent, suggesting limited upside without improvement in leverage or coverage ratios.

Analysis Checks(8/10)

Inventory turnover ratio

Value38.02

Score2/3

Weight3.77%

1M Return0.11%

Days sales outstanding

Value72.42

Score2/3

Weight13.74%

1M Return0.33%

Gross profit margin (%)

Value36.70

Score2/3

Weight19.95%

1M Return0.47%

Quick ratio

Value2.41

Score2/3

Weight3.77%

1M Return0.11%

Non-current assets / Total assets (%)

Value55.38

Score2/3

Weight14.32%

1M Return0.34%

Non-current liabilities / Total liabilities (%)

Value53.32

Score2/3

Weight14.32%

1M Return0.34%

Total profit / EBIT (%)

Value100.00

Score2/3

Weight21.95%

1M Return0.53%

Fixed assets turnover ratio

Value7993.84

Score2/3

Weight13.92%

1M Return0.34%

Interest coverage ratio (EBIT / Interest expense) (%)

Value15.51

Score1/3

Weight-18.62%

1M Return-0.49%

Net profit / Total profit (%)

Value100.00

Score1/3

Weight12.88%

1M Return0.31%

Is ARR undervalued or overvalued?

ARR scores 3.51/10 on fundamentals and holds a Fair valuation at present. Backed by its 5.84% ROE, -1686.96% net margin, 37.67 P/E ratio, 0.93 P/B ratio, and -93.45% earnings growth, these metrics solidify its Netural investment rating.