ARBOR REALTY TRUST INC (ABR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABR - US0389231087 - REIT
7.74 USD
-0.22 (-2.76%)
7.78 USD
+0.04 (+0.52%)
Overall ABR gets a fundamental rating of 6 out of 10. We evaluated ABR against 68 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. These ratings would make ABR suitable for value 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.
- ABR had positive earnings in each of the past 5 years.
- ABR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ABR (1.10%) is better than 85.29% of its industry peers.
- The Return On Equity of ABR (5.09%) is better than 69.12% of its industry peers.
- ABR has a better Return On Invested Capital (1.05%) than 82.35% 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 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 5.09% | ||
| ROIC | 1.05% |
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's Profit Margin of 12.41% is fine compared to the rest of the industry. ABR outperforms 67.65% of its industry peers.
- ABR's Profit Margin has declined in the last couple of years.
- ABR has a Operating Margin of 14.95%. This is comparable to the rest of the industry: ABR outperforms 55.88% of its industry peers.
- ABR's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 42.98%, ABR belongs to the best of the industry, outperforming 83.82% of the companies in the same industry.
- In the last couple of years the Gross Margin of ABR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.95% | ||
| PM (TTM) | 12.41% | ||
| GM | 42.98% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ABR 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.
- The debt/assets ratio for ABR has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.25, we must say that ABR is in the distress zone and has some risk of bankruptcy.
- ABR's Altman-Z score of 0.25 is amongst the best of the industry. ABR outperforms 82.35% of its industry peers.
- The Debt to FCF ratio of ABR is 25.46, which is on the high side as it means it would take ABR, 25.46 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ABR (25.46) is better than 89.71% of its industry peers.
- ABR has a Debt/Equity ratio of 3.47. This is a high value indicating a heavy dependency on external financing.
- ABR has a Debt to Equity ratio of 3.47. This is in the better half of the industry: ABR outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 25.46 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.15
WACC6.85%
2.3 Liquidity
- ABR has a Current Ratio of 83.21. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
- ABR has a better Current ratio (83.21) than 100.00% of its industry peers.
- ABR has a Quick Ratio of 83.21. This indicates that ABR is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 83.21, ABR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 83.21 | ||
| Quick Ratio | 83.21 |
3. Growth
3.1 Past
- The earnings per share for ABR have decreased strongly by -31.18% 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.
- ABR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.60%.
- The Revenue has been growing by 21.64% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-31.18%
EPS 3Y-8.31%
EPS 5Y6.79%
EPS Q2Q%-18.6%
Revenue 1Y (TTM)-18.6%
Revenue growth 3Y21.31%
Revenue growth 5Y21.64%
Sales Q2Q%-56.91%
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 -14.84% yearly.
- ABR is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.98% yearly.
EPS Next Y-40.99%
EPS Next 2Y-29.47%
EPS Next 3Y-14.84%
EPS Next 5YN/A
Revenue Next Year-38%
Revenue Next 2Y-22.54%
Revenue Next 3Y-13.98%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 6.05 indicates a rather cheap valuation of ABR.
- 91.18% of the companies in the same industry are more expensive than ABR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. ABR is valued rather cheaply when compared to this.
- ABR is valuated reasonably with a Price/Forward Earnings ratio of 8.89.
- ABR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABR is cheaper than 64.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ABR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABR is valued cheaper than 83.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ABR is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.71 | ||
| EV/EBITDA | 57.02 |
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 -14.84% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-29.47%
EPS Next 3Y-14.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 16.71%, ABR is a good candidate for dividend investing.
- In the last 3 months the price of ABR has falen by -34.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 11.26, ABR pays a better dividend. On top of this ABR pays more dividend than 89.71% of the companies listed in the same industry.
- ABR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.71% |
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 225.84% 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.
DP225.84%
EPS Next 2Y-29.47%
EPS Next 3Y-14.84%
ARBOR REALTY TRUST INC / ABR FAQ
What is the ChartMill fundamental rating of ARBOR REALTY TRUST INC (ABR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ABR.
Can you provide the valuation status for ARBOR REALTY TRUST INC?
ChartMill assigns a valuation rating of 7 / 10 to ARBOR REALTY TRUST INC (ABR). This can be considered as Undervalued.
What is the profitability of ABR stock?
ARBOR REALTY TRUST INC (ABR) has a profitability rating of 6 / 10.
What is the expected EPS growth for ARBOR REALTY TRUST INC (ABR) stock?
The Earnings per Share (EPS) of ARBOR REALTY TRUST INC (ABR) is expected to decline by -40.99% in the next year.
Is the dividend of ARBOR REALTY TRUST INC sustainable?
The dividend rating of ARBOR REALTY TRUST INC (ABR) is 6 / 10 and the dividend payout ratio is 225.84%.