ARBOR REALTY TRUST INC (ABR) Stock Fundamental Analysis
NYSE:ABR - New York Stock Exchange, Inc. - US0389231087 - REIT - Currency: USD
Taking everything into account, ABR scores 6 out of 10 in our fundamental rating. ABR was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ABR has an average financial health and profitability rating. ABR has a bad growth rate and is valued cheaply. Finally ABR also has an excellent dividend rating. With these ratings, ABR could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year ABR was profitable.
In the past year ABR had a positive cash flow from operations.
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
The Return On Assets of ABR (1.65%) is better than 89.06% of its industry peers.
ABR has a better Return On Equity (7.38%) than 76.56% of its industry peers.
ABR has a Return On Invested Capital of 1.69%. This is amongst the best in the industry. ABR outperforms 85.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABR is in line with the industry average of 1.76%.
| 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 70.31% of its industry peers.
In the last couple of years the Profit Margin of ABR has declined.
ABR has a better Operating Margin (20.20%) than 71.88% of its industry peers.
ABR's Operating Margin has declined in the last couple of years.
ABR's Gross Margin of 43.60% is fine compared to the rest of the industry. ABR outperforms 76.56% 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.
ABR has more shares outstanding than it did 1 year ago.
ABR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ABR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.35, we must say that ABR is in the distress zone and has some risk of bankruptcy.
ABR has a Altman-Z score of 0.35. This is amongst the best in the industry. ABR outperforms 84.38% of its industry peers.
The Debt to FCF ratio of ABR is 21.77, which is on the high side as it means it would take ABR, 21.77 years of fcf income to pay off all of its debts.
ABR's Debt to FCF ratio of 21.77 is amongst the best of the industry. ABR outperforms 84.38% of its industry peers.
A Debt/Equity ratio of 3.30 is on the high side and indicates that ABR has dependencies on debt financing.
ABR has a better Debt to Equity ratio (3.30) than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 21.77 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.24
WACC7.1%
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.
ABR has a Quick Ratio of 115.47. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
ABR has a better Quick ratio (115.47) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 115.47 | ||
| Quick Ratio | 115.47 |
3. Growth
3.1 Past
ABR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.22%.
The Earnings Per Share has been growing slightly by 6.79% on average over the past years.
The Revenue for ABR has decreased by -12.16% in the past year. This is quite bad
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
The Earnings Per Share is expected to decrease by -3.46% on average over the next years.
The Revenue is expected to decrease by -2.77% on average over the next years.
EPS Next Y-14.01%
EPS Next 2Y-3.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.81%
Revenue Next 2Y-2.77%
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 6.85 indicates a rather cheap valuation of ABR.
ABR's Price/Earnings ratio is rather cheap when compared to the industry. ABR is cheaper than 89.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.75, ABR is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.96, the valuation of ABR can be described as very cheap.
Based on the Price/Forward Earnings ratio, ABR is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ABR to the average of the S&P500 Index (22.44), we can say ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
ABR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABR is cheaper than 89.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABR indicates a rather cheap valuation: ABR is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 39.38 |
4.3 Compensation for Growth
The decent profitability rating of ABR may justify a higher PE ratio.
A cheap valuation may be justified as ABR's earnings are expected to decrease with -3.46% in the coming years.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-3.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.20%, ABR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.95, ABR pays a bit more dividend than its industry peers.
ABR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.2% |
5.2 History
The dividend of ABR is nicely growing with an annual growth rate of 12.05%!
ABR has paid a dividend for at least 10 years, which is a reliable track record.
ABR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ABR pays out 176.84% of its income as dividend. 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-3.46%
EPS Next 3YN/A
11.98
-0.36 (-2.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change1.34%
Ins Owners2.28%
Ins Owner Change-0.68%
Market Cap2.26B
Analysts50.77
Price Target15.05 (25.63%)
Short Float %31.44%
Short Ratio18.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.2% |
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)1.03%
PT rev (3m)1.43%
EPS NQ rev (1m)-26.49%
EPS NQ rev (3m)-26.49%
EPS NY rev (1m)-2.3%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)-6.54%
Revenue NQ rev (3m)-6.54%
Revenue NY rev (1m)4.62%
Revenue NY rev (3m)4.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 7.96 | ||
| P/S | 1.58 | ||
| P/FCF | 4.93 | ||
| P/OCF | 4.9 | ||
| P/B | 0.75 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 39.38 |
EPS(TTM)1.75
EY14.61%
EPS(NY)1.5
Fwd EY12.56%
FCF(TTM)2.43
FCFY20.27%
OCF(TTM)2.45
OCFY20.43%
SpS7.56
BVpS16.03
TBVpS15.57
PEG (NY)N/A
PEG (5Y)1.01
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 | 0.35 |
F-Score7
WACC7.1%
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-14.01%
EPS Next 2Y-3.46%
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-5.81%
Revenue Next 2Y-2.77%
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