📊 ARR-PC Key Takeaways
Is Armour Residential REIT, Inc. (ARR-PC) a Good Investment?
Armour Residential REIT demonstrates strong cash generation with 78.4% FCF margin and positive operating cash flow of $124.2M, but profitability metrics are distorted by accounting gains that drive an anomalously high 203.8% net margin. The company's heavy leverage (18.7B liabilities vs 2.3B equity) and negative interest coverage ratio of -0.7x raise concerns about debt serviceability and financial stability despite the dramatic YoY net income growth.
Armour Residential REIT shows headline earnings strength, but the quality of that profitability looks weak because net income far exceeds operating income and operating margin remains negative. Positive operating cash flow and a solid reported ROE are offsets, yet the balance sheet remains highly leveraged relative to equity and liquidity appears thin for a mortgage REIT-style risk profile. Fundamentally, this looks more like a financially sensitive income vehicle than a business with durable, high-quality growth.
Why Buy Armour Residential REIT, Inc. Stock? ARR-PC Key Strengths
- Exceptional free cash flow generation at $124.2M with 78.4% FCF margin indicates strong underlying operational performance
- Significant YoY revenue growth of 490.8% demonstrates expanded business activity and market positioning
- Positive ROE of 14.3% shows reasonable returns on shareholder capital despite leverage constraints
- Revenue and diluted EPS grew sharply year over year, indicating a major improvement in reported results
- Operating cash flow was positive at $124.20M, supporting cash-generating capacity despite accounting volatility
- Reported ROE of 14.3% suggests the company is still producing acceptable returns on shareholder capital
ARR-PC Stock Risks: Armour Residential REIT, Inc. Investment Risks
- Negative interest coverage ratio (-0.7x) signals potential difficulty in meeting debt obligations from operating income
- Extremely high leverage with 18.7B liabilities against only 2.3B equity creates significant financial risk and refinancing exposure
- Distorted profitability with net margin of 203.8% and negative operating margin of -19.7% suggests one-time gains rather than sustainable earnings quality
- Operating income was negative and operating margin was -19.7%, showing weak core earnings quality
- Net margin of 203.8% implies earnings were heavily influenced by non-operating or mark-to-market effects that may not be durable
- Liabilities of $18.74B versus $2.26B of equity and just $63.27M of cash indicate elevated balance-sheet risk and limited liquidity cushion
Key Metrics to Watch
- Interest coverage ratio trend and operating income improvement toward positive territory
- Debt refinancing activity and refinancing rates in the mortgage REIT market
- Sustainability of net income gains and composition of earnings (recurring vs non-recurring items)
- Core earnings versus net income, especially whether operating income turns sustainably positive
- Liquidity and leverage trends, including cash balances, equity base, and liability-to-equity levels
Armour Residential REIT, Inc. (ARR-PC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 78.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ARR-PC Profit Margin, ROE & Profitability Analysis
ARR-PC vs Real Estate Sector: How Armour Residential REIT, Inc. Compares
How Armour Residential REIT, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Armour Residential REIT, Inc. Stock Overvalued? ARR-PC Valuation Analysis 2026
Based on fundamental analysis, Armour Residential REIT, Inc. appears fundamentally strong relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Armour Residential REIT, Inc. Balance Sheet: ARR-PC Debt, Cash & Liquidity
ARR-PC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Armour Residential REIT, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-1.86 indicates the company is currently unprofitable.
ARR-PC Revenue Growth, EPS Growth & YoY Performance
ARR-PC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2011 | -$5.1M | -$394.9K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Armour Residential REIT, Inc. Dividends, Buybacks & Capital Allocation
ARR-PC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Armour Residential REIT, Inc. (CIK: 0001428205)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARR-PC
What is the AI rating for ARR-PC?
Armour Residential REIT, Inc. (ARR-PC) has a Combined AI Rating of SELL from Claude (HOLD) and ChatGPT (SELL) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARR-PC's key strengths?
Claude: Exceptional free cash flow generation at $124.2M with 78.4% FCF margin indicates strong underlying operational performance. Significant YoY revenue growth of 490.8% demonstrates expanded business activity and market positioning. ChatGPT: Revenue and diluted EPS grew sharply year over year, indicating a major improvement in reported results. Operating cash flow was positive at $124.20M, supporting cash-generating capacity despite accounting volatility.
What are the risks of investing in ARR-PC?
Claude: Negative interest coverage ratio (-0.7x) signals potential difficulty in meeting debt obligations from operating income. Extremely high leverage with 18.7B liabilities against only 2.3B equity creates significant financial risk and refinancing exposure. ChatGPT: Operating income was negative and operating margin was -19.7%, showing weak core earnings quality. Net margin of 203.8% implies earnings were heavily influenced by non-operating or mark-to-market effects that may not be durable.
What is ARR-PC's revenue and growth?
Armour Residential REIT, Inc. reported revenue of $158.3M.
Does ARR-PC pay dividends?
Armour Residential REIT, Inc. pays dividends, with $283.5M distributed to shareholders in the trailing twelve months.
Where can I find ARR-PC SEC filings?
Official SEC filings for Armour Residential REIT, Inc. (CIK: 0001428205) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARR-PC's EPS?
Armour Residential REIT, Inc. has a diluted EPS of $3.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ARR-PC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Armour Residential REIT, Inc. has a SELL rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ARR-PC stock overvalued or undervalued?
Valuation metrics for ARR-PC: ROE of 14.3% (sector avg: 8%), net margin of 203.8% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.
Should I buy ARR-PC stock in 2026?
Our dual AI analysis gives Armour Residential REIT, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ARR-PC's free cash flow?
Armour Residential REIT, Inc.'s operating cash flow is $124.2M, with capital expenditures of N/A. FCF margin is 78.4%.
How does ARR-PC compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 203.8% (avg: 20%), ROE 14.3% (avg: 8%), current ratio N/A (avg: 1.5).