Armour Residential REIT, Inc. (ARR.PC) stock analysis

ARR.PCNYSEReal Estate Investment TrustsFiscal year ends December 31Also trades as ARR

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 21, 2026Score 9/3012% below fair value

$18.72−0.16 (-0.85%)

Close on Nov 3, 2026Market cap $2.65BP/E –Yield 15.38%

StockData Score

Prices as of Nov 3, 2026How the score works

Mixed9 of 30 checks passed

Armour Residential REIT passes 9 of the 30 checks behind our score; 16 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 2/6
Growth: 0/6
Past performance: 0/6
Financial health: 4/6
Dividend: 3/6

What stands out

Trading below fair value
The share price of $12.13 is below our fair value estimate of $13.74.
No debt
Armour Residential REIT has no borrowings on its latest balance sheet.
Interest well covered
No meaningful interest expense to cover.
Debt covered by cash flow
There is no debt to cover.

What to watch

Margin of safety under 20%
The price is 11.7% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was -2.3% over the last twelve months and averaged -1.6% over five years; we look for 15% on both.
Elevated bankruptcy risk
The Altman Z-score is 0.00; above 3 is the safe zone and below 1.8 the distress zone.
Dividend was cut
The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Valuation2/6

P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B below the industry
Armour Residential REIT's price-to-book of 0.73 is below the Miscellaneous Investing median of 1.20.
Trading below fair value
The share price of $12.13 is below our fair value estimate of $13.74.
Margin of safety under 20%
The price is 11.7% below fair value, less than the 20% cushion we look for.

Growth0/6

Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growth against the industry
Needs revenue for this year and last.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.

Past performance0/6

Return on equity under 15%
Return on equity was -2.3% over the last twelve months and averaged -1.6% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity below the industry
Armour Residential REIT's return on equity of -2.3% is below the Miscellaneous Investing median of 3.5%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.

Financial health4/6

No debt
Armour Residential REIT has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Elevated bankruptcy risk
The Altman Z-score is 0.00; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

Pays a dividend
Armour Residential REIT paid dividends worth 23.7% of the share price over the last twelve months.
Yield above Treasuries
The 23.7% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.9% or more; Armour Residential REIT yields 23.7%.
Dividend was cut
The dividend per share fell by more than 10% at least once in the last 10 fiscal years.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$13.74

The share price is 12% below this estimate.

20%+ below

Near fair value

20%+ above

$12.13Price

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/B	1.0×	0.8×	1.2×	$16.44	40%
Earnings power	10.2% cost of equity	–	–	$11.94	60%
Fair value				$13.74	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Miscellaneous Investing median 25.9

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day: $65.72M
Value traded per 1% price move: $54.73M

Downside

Medium risk

Typical loss in a bad month: 15.6%
Volatility (annualized): 24%
Sharpe ratio, 1 year: -1.23
Beta to the S&P 500 (5Y): 1.06

Typical bad-month loss, week by week

Margins need revenue and profit figures

This company does not report the lines needed to calculate margins.

Per year	1 year	3 years	5 years	10 years	Five-year pace
Dividend per share	0.0%	-21.7%	-13.7%	-17.4%

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2016	FY2020	FY2025
Return on equity	-3.9%	-18.1%	17.8%
Return on assets	-0.4%	-2.3%	1.9%
Diluted shares	7M	13M	94M

See a number that looks wrong?