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. While ABR has a great profitability rating, there are some minor concerns on its financial health. ABR is cheap, but on the other hand it scores bad on growth. These ratings could make ABR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ABR had positive earnings in the past year.
ABR had a positive operating cash flow in the past year.
ABR had positive earnings in each of the past 5 years.
Each year in the past 5 years ABR had a positive operating cash flow.
1.2 Ratios
ABR's Return On Assets of 1.47% is amongst the best of the industry. ABR outperforms 90.77% of its industry peers.
The Return On Equity of ABR (6.51%) is better than 86.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.58%, ABR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
ABR had an Average Return On Invested Capital over the past 3 years of 1.81%. This is in line with the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 6.51% | ||
| ROIC | 1.58% |
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 (14.53%) than 78.46% of its industry peers.
In the last couple of years the Profit Margin of ABR has declined.
The Operating Margin of ABR (19.78%) is better than 78.46% of its industry peers.
ABR's Operating Margin has declined in the last couple of years.
ABR's Gross Margin of 44.19% is amongst the best of the industry. ABR outperforms 84.62% of its industry peers.
ABR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.78% | ||
| PM (TTM) | 14.53% | ||
| GM | 44.19% |
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.
Compared to 1 year ago, ABR has more shares outstanding
Compared to 5 years ago, ABR has more shares outstanding
ABR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.31, we must say that ABR is in the distress zone and has some risk of bankruptcy.
ABR has a better Altman-Z score (0.31) than 83.08% of its industry peers.
The Debt to FCF ratio of ABR is 29.07, which is on the high side as it means it would take ABR, 29.07 years of fcf income to pay off all of its debts.
ABR's Debt to FCF ratio of 29.07 is amongst the best of the industry. ABR outperforms 81.54% of its industry peers.
ABR has a Debt/Equity ratio of 3.30. This is a high value indicating a heavy dependency on external financing.
ABR has a Debt to Equity ratio of 3.30. This is in the better half of the industry: ABR outperforms 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 29.07 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.22
WACC7.21%
2.3 Liquidity
A Current Ratio of 218.41 indicates that ABR has no problem at all paying its short term obligations.
ABR has a better Current ratio (218.41) than 100.00% of its industry peers.
ABR has a Quick Ratio of 218.41. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 218.41, ABR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 218.41 | ||
| Quick Ratio | 218.41 |
3. Growth
3.1 Past
ABR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.71%.
The Earnings Per Share has been growing slightly by 6.79% on average over the past years.
Looking at the last year, ABR shows a very negative growth in Revenue. The Revenue has decreased by -15.84% in the last year.
Measured over the past years, ABR shows a very strong growth in Revenue. The Revenue has been growing by 21.64% on average per year.
EPS 1Y (TTM)-25.71%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-40.43%
Revenue 1Y (TTM)-15.84%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-27.19%
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 -21.60% yearly.
The Revenue is expected to decrease by -3.65% on average over the next years.
EPS Next Y-36.32%
EPS Next 2Y-21.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.35%
Revenue Next 2Y-3.65%
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
With a Price/Earnings ratio of 6.99, the valuation of ABR can be described as very cheap.
Based on the Price/Earnings ratio, ABR is valued cheaper than 83.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. ABR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.13, which indicates a very decent valuation of ABR.
ABR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABR is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABR indicates a rather cheap valuation: ABR is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.14 | ||
| EV/EBITDA | 42.29 |
4.3 Compensation for Growth
ABR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ABR's earnings are expected to decrease with -21.60% in the coming years.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y-21.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ABR has a Yearly Dividend Yield of 7.66%, which is a nice return.
With a Dividend Yield of 7.66, ABR pays less dividend than the industry average, which is at 11.56. 93.85% of the companies listed in the same industry pay a better dividend than ABR!
ABR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
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.
Dividend Growth(5Y)12.05%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ABR pays out 201.98% of its income as dividend. This is not a sustainable payout ratio.
ABR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP201.98%
EPS Next 2Y-21.6%
EPS Next 3YN/A
10.9
-0.16 (-1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners56.89%
Inst Owner Change-2.88%
Ins Owners2.38%
Ins Owner Change2.86%
Market Cap2.09B
Analysts47.27
Price Target12.07 (10.73%)
Short Float %31.23%
Short Ratio14.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
Yearly Dividend2.09
Dividend Growth(5Y)12.05%
DP201.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.96%
Min EPS beat(2)2.68%
Max EPS beat(2)11.25%
EPS beat(4)4
Avg EPS beat(4)7.77%
Min EPS beat(4)2.68%
Max EPS beat(4)11.25%
EPS beat(8)8
Avg EPS beat(8)13.39%
EPS beat(12)11
Avg EPS beat(12)16.76%
EPS beat(16)14
Avg EPS beat(16)16.55%
Revenue beat(2)0
Avg Revenue beat(2)-3.02%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-2.83%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)4.78%
Revenue beat(8)5
Avg Revenue beat(8)3.66%
Revenue beat(12)9
Avg Revenue beat(12)67.14%
Revenue beat(16)13
Avg Revenue beat(16)101.68%
PT rev (1m)0%
PT rev (3m)-8.97%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-12.59%
EPS NY rev (1m)-5.16%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)-2.06%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 10.13 | ||
| P/S | 1.55 | ||
| P/FCF | 6.14 | ||
| P/OCF | 5.95 | ||
| P/B | 0.7 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 42.29 |
EPS(TTM)1.56
EY14.31%
EPS(NY)1.08
Fwd EY9.87%
FCF(TTM)1.77
FCFY16.28%
OCF(TTM)1.83
OCFY16.81%
SpS7.01
BVpS15.65
TBVpS15.19
PEG (NY)N/A
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 6.51% | ||
| ROCE | 1.99% | ||
| ROIC | 1.58% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.69% | ||
| OM | 19.78% | ||
| PM (TTM) | 14.53% | ||
| GM | 44.19% | ||
| FCFM | 25.3% |
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-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 29.07 | ||
| Debt/EBITDA | 35.74 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.36 | ||
| Cash Conversion | 126.98% | ||
| Profit Quality | 174.11% | ||
| Current Ratio | 218.41 | ||
| Quick Ratio | 218.41 | ||
| Altman-Z | 0.31 |
F-Score6
WACC7.21%
ROIC/WACC0.22
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)-25.71%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-40.43%
EPS Next Y-36.32%
EPS Next 2Y-21.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.84%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-27.19%
Revenue Next Year-14.35%
Revenue Next 2Y-3.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.68%
EBIT growth 3Y-9.53%
EBIT growth 5Y11.4%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y65.52%
FCF growth 3Y28.32%
FCF growth 5YN/A
OCF growth 1Y70.93%
OCF growth 3Y28.64%
OCF growth 5YN/A