| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 83 | 5.2x | 17.8x | Top tier | |
Growth | 72 | 34.2% | 7.1% | Top tier | |
Quality | 88 | 4.9% | 4.5% | Top tier | |
Safety | 20 | 18.0x | 2.6x | Bottom tier | |
Capital Return | 63 | 18.23% | 2.12% | Around median | |
Momentum | 43 | 11.7% | 2.9% | Around median | |
Sentiment | 37 | 4 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ARMOUR Residential REIT is a mortgage real estate investment trust focused on owning a leveraged portfolio of agency-issued mortgage-backed securities, alongside Agency CMBS and U.S. Treasury securities. The portfolio was valued at more than $22 billion at the end of fiscal 2026 Q2 and consisted 100% of these asset classes, while specified pools with favorable prepayment characteristics represented more than 95% of its mortgage-backed securities holdings. Income is generated primarily from the yield spread between assets and funding costs, with swaps, futures, and Treasury positions used to hedge against changes in interest rates.
In fiscal 2026 Q2, ARMOUR reported net income available to common stockholders of $111.5 million, or $0.86 per share, and net interest income of $76.8 million. Distributable earnings were $93.2 million, or $0.72 per share, while total economic return reached 4.8% and book value increased 0.6% from March 31, 2026, to $17.53 per share. The company paid monthly dividends of $0.24 per share, totaling $0.72 during the quarter, making distributable earnings exactly equal to dividends.
The balance sheet continued to expand for the fifth consecutive quarter in both assets and the capital base, and the company added approximately $1.3 billion of new mortgage assets since the April 2026 call. Implied leverage, excluding Treasury holdings, was approximately 7.5 times, with net balance-sheet duration near zero and estimated liquidity exceeding $1.2 billion, or approximately 50% of total equity, at the end of July 2026. This positioning reflects a balance between capturing portfolio yield and maintaining appropriate hedging and liquidity for an unstable interest-rate environment.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on ARR is Neutral, with an average price target of $15 and a wide range from $13 to $18, reflecting differing views on dividend sustainability and book-value sensitivity to spreads and interest rates. The average target is below the upper end of the 52-week range of $19.31, while the lowest target is below the range's low of $13.98; no usable price-to-earnings ratio is available, so book value of $17.53 per share as of June 30, 2026, and dividend yield remain among the key valuation anchors.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
ARMOUR invests in a portfolio exceeding $22 billion of Agency MBS, Agency CMBS, and U.S. Treasury securities, generating income primarily from the difference between the yield on these assets and their funding cost. Net interest income was $76.8 million in fiscal 2026 Q2, while distributable earnings were $93.2 million. The company uses OIS and SOFR swaps, futures, and Treasury positions to limit the effect of interest-rate changes on this spread.
Distributable earnings were $0.72 per share in fiscal 2026 Q2, equal to total dividends of $0.72 per share. The company paid $0.24 monthly and declared a dividend of the same amount payable on July 30, 2026, and another on August 28, 2026. Full coverage provides stability for the reported period, but it leaves no visible cushion if interest earnings decline or funding and hedging costs increase.
Book value reflects the change in the value of the mortgage portfolio after liabilities and hedges and is therefore a key metric for a leveraged mortgage company. Book value was $17.53 per share at the end of fiscal 2026 Q2, up 0.6% from March 31, 2026. Management estimated book value at approximately $17 on July 20, 2026, after accounting for the July dividend of $0.24 per share.
ARMOUR ended fiscal 2026 Q2 with net balance-sheet duration near zero and implied leverage of approximately 7.5 times, excluding Treasury holdings. Fixed-pay OIS and SOFR swaps represented approximately 86% of hedging instruments, with swaps favored at short and intermediate maturities and a more balanced mix of swaps, futures, and Treasury positions at longer maturities. Estimated liquidity also exceeded $1.2 billion, or approximately 50% of total equity, at the end of July 2026.
Higher mortgage rates constrained loan production, and net issuance of Fannie Mae and Freddie Mac securities remained negative during fiscal 2026, limiting supply. At the same time, domestic and international flows into bond funds continued, and the two institutions retained more than $100 billion of purchasing capacity under their regulatory cap. ARMOUR benefited from these conditions by adding approximately $1.3 billion of mortgage assets since the April 2026 call, with more than 95% of MBS holdings concentrated in specified pools.
The primary risk is widening mortgage spreads due to more persistent inflation, tighter monetary policy, or higher interest-rate volatility. ARMOUR uses leverage of approximately 7.5 times, so an unfavorable move in spreads could pressure book value and distributable earnings despite hedges. Fiscal 2026 Q2 dividend coverage was also only 1 time because distributable earnings and dividends were equal at $0.72 per share.
