ARMOUR Residential REIT, Inc. (ARR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-1175.3%

-$133.71

vs $12.44 price

Levered DCF

-$164.76

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

-1.1

Distress zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	5.34×	-36.98×	-10.39×	-2.75×	204.38×	-3.02×	-3.89×	-7.02×
P/B	0.73×	0.72×	0.65×	0.57×	0.68×	0.73×	0.72×	0.77×
P/S	1.27×	4.1×	1.85×	-0.72×	159.34×	-3.19×	4.85×	24.01×
EV / EBITDA	20.21×	1.8×	1.33×	-5.87×	6.26×	-51.1×	316.12×	89.95×
Gross margin	97.0%	86.2%	93.0%	103.0%	-359.9%	109.7%	86.1%	24.3%
Operating margin	73.9%	212.5%	101.8%	12.0%	459.2%	70.9%	18.0%	134.2%
Net margin	24.7%	-6.0%	-15.1%	26.2%	313.9%	100.9%	-117.4%	-294.6%
Current ratio	0.01×	0×	0×	0×	0×	0×	0×	525.81×
Debt / equity	7.94×	0×	0×	0×	0×	4.83×	7.9×	6.25×
Interest coverage	1.5×	0.97×	0.87×	-0.87×	3.16×	-2.4×	0.13×	0.31×
Dividend yield	17.1%	16.6%	27.4%	24.5%	13.9%	12.5%	13.6%	13.2%
Payout ratio	87.8%	-1131.9%	-335.9%	-67.2%	703.7%	-39.6%	-56.1%	-107.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.3%	-1.1%	-5.3%	-20.7%	1.3%	-22.9%	-17.4%	-9.4%
Return on invested capital	645.7%	0.0%	0.0%	0.0%	0.0%	3601.7%	-9.7%	0.3%
Return on assets	1.5%	-0.1%	-0.6%	-2.4%	0.3%	-3.9%	-1.9%	-1.3%
Free cash flow yield	7.5%	26.6%	16.0%	19.7%	1.5%	-37.9%	-3.9%	8.7%
Earnings yield	19.4%	-1.5%	-8.2%	-36.4%	2.0%	-31.6%	-24.2%	-12.3%
Enterprise value	$19.5B	$915.7M	$609.9M	$544M	$442.1M	$5B	$12.1B	$7.7B
Net debt / EBITDA	18.49×	-0.13×	-0.48×	0.94×	-4.78×	-44.2×	289.15×	79.84×
Cash conversion cycle (days)	3	-367	-404	-418	729	-22	60	-4,406