ARMOUR Residential REIT, Inc. (ARR) AI Stock Analysis

ARMOUR Residential REIT, Inc. specializes in investing in residential mortgage-backed securities (MBS) across the United States. Its portfolio primarily comprises securities issued or guaranteed by Government-sponsored entities such as Fannie Mae and Freddie Mac, as well as securities backed by the Government National Mortgage Association. These holdings are collateralized by fixed-rate, hybrid adjustable-rate, and adjustable-rate home loans. ARMOUR also holds unsecured notes and bonds issued by GSEs and U.S. Treasuries, alongside non-agency residential mortgage-backed securities. Headquartered in Vero Beach, Florida, the company operates as a real estate investment trust, distributing at least 90% of its taxable income to shareholders.

ARMOUR experienced significant financial variation over recent years, moving from revenue of $19.2M and net income of $3.9M in FY2021 to revenue of -$878.0M and net income of -$229.9M in FY2022. Revenue reached $449.7M in FY2023 with net income of -$67.9M, followed by revenue of $239.9M and net income of -$14.4M in FY2024. In FY2025, revenue surged 444.1% to $1.31B, while net income rose to $322.7M with an operating margin of 73.9%. Over the trailing twelve months ended June 30, 2026, revenue stood at $490.7M with an operating margin of 87.0%. In the latest quarter, quarterly revenue grew 126.1% year-over-year, while quarterly earnings grew 23.1%.

As of June 30, 2026, ARMOUR held $83.7M in cash and short-term investments against total debt of $19.44B, resulting in net debt of $19.36B. Total assets stood at $22.75B and shareholders' equity was $2.58B, reflecting a debt-to-equity ratio of 7.54 and a current ratio of 0.00. In FY2025, operating cash flow and free cash flow were both $124.2M. Cash deployment during FY2025 included $283.5M paid in dividends and $19.9M in share buybacks, while the five-year share count change was 608.9%.

At a share price of $13.20, ARMOUR has a market cap of $1.87B and an enterprise value of $19.75B. The stock trades at a trailing P/E of 3.3x and a forward P/E of 5.1x, below the median of its US-listed Real Estate peers at 21.6x trailing and 23.5x forward P/E. Its price-to-book ratio is 0.8x and EV to EBITDA is 9.8x, compared to the peer median EV to EBITDA of 14.7x. Over the past year, the stock returned 1.6%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, ARMOUR shares fell 41.7%, compared to an 83.0% gain for the S&P 500.

ARMOUR pays a monthly dividend with an annualized forward dividend of $2.88, delivering a dividend yield of 21.82%. The payout ratio stands at 57.8%. The company has paid dividends for 17 consecutive years, though its 5-year annualized dividend growth is -13.7%. The last ex-dividend date was October 15, 2026.

Wall Street coverage consists of 2 Strong Buy ratings, 0 Buy ratings, 4 Hold ratings, and 0 Sell or Strong Sell ratings. The mean price target is $18.38, representing an upside of 39.2% over the last close of $13.20. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $2.89 on revenue of $327.9M. ARMOUR beat EPS estimates in 1 of the last 4 quarters. The next earnings date is October 28, 2026.

This page is an AI-written research summary of ARMOUR Residential REIT, Inc. (ARR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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