ARBOR REALTY TRUST INC (ABR) Stock Fundamental Analysis
NYSE:ABR - New York Stock Exchange, Inc. - US0389231087 - REIT - Currency: USD
Overall ABR gets a fundamental rating of 6 out of 10. We evaluated ABR against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of ABR get a neutral evaluation. Nothing too spectacular is happening here. ABR is cheap, but on the other hand it scores bad on growth. ABR also has an excellent dividend rating. These ratings could make ABR a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ABR was profitable.
ABR had a positive operating cash flow in the past year.
In the past 5 years ABR has always been profitable.
ABR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 1.65%, ABR belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.38%, ABR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
ABR has a better Return On Invested Capital (1.69%) than 83.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABR is in line with the industry average of 1.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 7.38% | ||
| ROIC | 1.69% |
ROA(3y)1.81%
ROA(5y)1.93%
ROE(3y)9.22%
ROE(5y)10.59%
ROIC(3y)1.81%
ROIC(5y)1.96%
1.3 Margins
ABR has a better Profit Margin (15.65%) than 69.23% of its industry peers.
ABR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 20.20%, ABR is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
ABR's Operating Margin has declined in the last couple of years.
The Gross Margin of ABR (43.60%) is better than 83.08% of its industry peers.
ABR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.2% | ||
| PM (TTM) | 15.65% | ||
| GM | 43.6% |
OM growth 3Y-25.42%
OM growth 5Y-8.42%
PM growth 3Y-26.69%
PM growth 5Y-7.09%
GM growth 3Y-15.96%
GM growth 5Y-7.73%
2. Health
2.1 Basic Checks
ABR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ABR has been increased compared to 1 year ago.
Compared to 5 years ago, ABR has more shares outstanding
The debt/assets ratio for ABR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that ABR is in the distress zone and has some risk of bankruptcy.
ABR has a better Altman-Z score (0.34) than 84.62% of its industry peers.
ABR has a debt to FCF ratio of 21.77. This is a negative value and a sign of low solvency as ABR would need 21.77 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 21.77, ABR belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
ABR has a Debt/Equity ratio of 3.30. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 3.30, ABR is doing good in the industry, outperforming 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 21.77 | ||
| Altman-Z | 0.34 |
ROIC/WACC0.24
WACC6.99%
2.3 Liquidity
ABR has a Current Ratio of 115.47. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 115.47, ABR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 115.47 indicates that ABR has no problem at all paying its short term obligations.
The Quick ratio of ABR (115.47) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 115.47 | ||
| Quick Ratio | 115.47 |
3. Growth
3.1 Past
The earnings per share for ABR have decreased strongly by -22.22% in the last year.
Measured over the past 5 years, ABR shows a small growth in Earnings Per Share. The EPS has been growing by 6.79% on average per year.
Looking at the last year, ABR shows a very negative growth in Revenue. The Revenue has decreased by -12.16% in the last year.
The Revenue has been growing by 21.64% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-22.22%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-21.57%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-20%
3.2 Future
ABR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.63% yearly.
The Revenue is expected to decrease by -4.20% on average over the next years.
EPS Next Y-38.59%
EPS Next 2Y-13.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16.4%
Revenue Next 2Y-4.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.30 indicates a rather cheap valuation of ABR.
ABR's Price/Earnings ratio is rather cheap when compared to the industry. ABR is cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABR to the average of the S&P500 Index (28.29), we can say ABR is valued rather cheaply.
ABR is valuated reasonably with a Price/Forward Earnings ratio of 10.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ABR to the average of the S&P500 Index (21.08), we can say ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABR is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ABR is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.56 | ||
| EV/EBITDA | 38.81 |
4.3 Compensation for Growth
ABR has a very decent profitability rating, which may justify a higher PE ratio.
ABR's earnings are expected to decrease with -13.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-13.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.59%, ABR is a good candidate for dividend investing.
In the last 3 months the price of ABR has falen by -20.07%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ABR's Dividend Yield is a higher than the industry average which is at 15.09.
Compared to an average S&P500 Dividend Yield of 2.52, ABR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.59% |
5.2 History
On average, the dividend of ABR grows each year by 12.05%, which is quite nice.
ABR has paid a dividend for at least 10 years, which is a reliable track record.
ABR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
176.84% of the earnings are spent on dividend by ABR. This is not a sustainable payout ratio.
The Dividend Rate of ABR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP176.84%
EPS Next 2Y-13.63%
EPS Next 3YN/A
11.03
+0.3 (+2.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change0%
Ins Owners2.28%
Ins Owner Change1.41%
Market Cap2.09B
Analysts48.33
Price Target13.26 (20.22%)
Short Float %34.28%
Short Ratio17.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.59% |
Yearly Dividend2.09
Dividend Growth(5Y)12.05%
DP176.84%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.21%
Min EPS beat(2)9.16%
Max EPS beat(2)11.25%
EPS beat(4)4
Avg EPS beat(4)10.5%
Min EPS beat(4)8.01%
Max EPS beat(4)13.59%
EPS beat(8)8
Avg EPS beat(8)19.74%
EPS beat(12)10
Avg EPS beat(12)15.15%
EPS beat(16)14
Avg EPS beat(16)17.97%
Revenue beat(2)1
Avg Revenue beat(2)0.97%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)4.78%
Revenue beat(4)2
Avg Revenue beat(4)3.2%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)14.05%
Revenue beat(8)6
Avg Revenue beat(8)5.45%
Revenue beat(12)10
Avg Revenue beat(12)81.28%
Revenue beat(16)14
Avg Revenue beat(16)118.31%
PT rev (1m)0%
PT rev (3m)-10.6%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-27.03%
EPS NY rev (1m)-28.59%
EPS NY rev (3m)-30.53%
Revenue NQ rev (1m)-4.97%
Revenue NQ rev (3m)-11.53%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-7.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 10.26 | ||
| P/S | 1.47 | ||
| P/FCF | 4.56 | ||
| P/OCF | 4.53 | ||
| P/B | 0.69 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 38.81 |
EPS(TTM)1.75
EY15.87%
EPS(NY)1.07
Fwd EY9.74%
FCF(TTM)2.42
FCFY21.91%
OCF(TTM)2.44
OCFY22.08%
SpS7.53
BVpS15.96
TBVpS15.49
PEG (NY)N/A
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 7.38% | ||
| ROCE | 2.14% | ||
| ROIC | 1.69% | ||
| ROICexc | 1.75% | ||
| ROICexgc | 1.83% | ||
| OM | 20.2% | ||
| PM (TTM) | 15.65% | ||
| GM | 43.6% | ||
| FCFM | 32.1% |
ROA(3y)1.81%
ROA(5y)1.93%
ROE(3y)9.22%
ROE(5y)10.59%
ROIC(3y)1.81%
ROIC(5y)1.96%
ROICexc(3y)1.9%
ROICexc(5y)2.04%
ROICexgc(3y)1.97%
ROICexgc(5y)2.12%
ROCE(3y)2.29%
ROCE(5y)2.48%
ROICexcg growth 3Y-5.22%
ROICexcg growth 5Y-4.7%
ROICexc growth 3Y-5.83%
ROICexc growth 5Y-4.77%
OM growth 3Y-25.42%
OM growth 5Y-8.42%
PM growth 3Y-26.69%
PM growth 5Y-7.09%
GM growth 3Y-15.96%
GM growth 5Y-7.73%
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 21.77 | ||
| Debt/EBITDA | 33.49 | ||
| Cap/Depr | 36.33% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 0.37 | ||
| Cash Conversion | 154.99% | ||
| Profit Quality | 205.15% | ||
| Current Ratio | 115.47 | ||
| Quick Ratio | 115.47 | ||
| Altman-Z | 0.34 |
F-Score7
WACC6.99%
ROIC/WACC0.24
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)220.9%
Profit Quality(5y)152.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.22%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-21.57%
EPS Next Y-38.59%
EPS Next 2Y-13.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-20%
Revenue Next Year-16.4%
Revenue Next 2Y-4.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-28.84%
EBIT growth 3Y-9.53%
EBIT growth 5Y11.4%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.21%
FCF growth 3Y28.32%
FCF growth 5YN/A
OCF growth 1Y95.68%
OCF growth 3Y28.64%
OCF growth 5YN/A