Latest Ratios: P/E Ratio 4.4x · EV/EBITDA 20.2x · ROE 17.8%. (2007–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.7B | $1.7B | $984M | $832M | $664M | $788M | $681M | $1.0B | $864M | $1.0B | $796M |
| Enterprise Value | $19.6B | $19.5B | $916M | $610M | $577M | $450M | $5.0B | $12.1B | $7.7B | $8.3B | $7.3B |
| P/E Ratio → | 4.42 | 5.36 | — | — | — | 204.38 | — | — | — | 6.17 | — |
| P/S Ratio | 1.30 | 1.28 | 4.10 | 1.85 | — | 160.99 | — | 4.85 | 24.01 | 3.74 | — |
| P/B Ratio | 0.61 | 0.74 | 0.72 | 0.65 | 0.60 | 0.69 | 0.73 | 0.72 | 0.11 | 0.12 | 0.11 |
| P/FCF | 13.68 | 13.43 | 3.76 | 6.26 | 5.35 | 67.12 | — | — | 11.48 | 9.26 | 0.11 |
| P/OCF | 13.68 | 13.43 | 3.76 | 6.26 | 5.35 | 67.12 | — | — | 11.48 | 9.26 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 14.97 | 3.82 | 1.36 | — | 92.00 | — | 56.90 | 213.48 | 30.52 | — |
| EV / EBITDA | 20.25 | 20.22 | 1.80 | 1.33 | — | 6.38 | — | 316.12 | 89.95 | 35.99 | 183.21 |
| EV / EBIT | 20.29 | 20.26 | 1.80 | 1.33 | — | 20.03 | — | 316.12 | 159.12 | 30.14 | 266.14 |
| EV / FCF | — | 157.37 | 3.50 | 4.59 | 4.65 | 38.36 | — | — | 102.09 | 75.49 | 0.98 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 97.0% | 97.0% | 86.2% | 93.0% | 103.0% | -359.9% | 109.7% | 86.1% | 24.3% | 90.2% | 118.5% |
| Operating Margin | 73.9% | 73.9% | 212.5% | 101.8% | 12.0% | 459.2% | 70.9% | 18.0% | 134.2% | 66.5% | 32.3% |
| Net Profit Margin | 24.7% | 24.7% | -6.0% | -15.1% | 26.2% | 313.9% | 100.9% | -117.4% | -294.6% | 66.5% | 32.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.8% | 17.8% | -1.1% | -5.7% | -20.4% | 1.5% | -18.1% | -5.3% | -1.3% | 2.2% | -1.0% |
| ROA | 1.9% | 1.9% | -0.1% | -0.6% | -3.1% | 0.3% | -2.3% | -2.3% | -1.2% | 2.1% | -0.4% |
| ROIC | 6.8% | 6.8% | 32.6% | 33.1% | -8.6% | 0.6% | -1.3% | 0.2% | 0.2% | 0.9% | -0.3% |
| ROCE | 31.5% | 31.5% | 3.9% | 4.2% | -1.4% | 0.4% | -12.1% | 0.8% | 0.6% | 2.1% | -0.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 7.94 | 7.94 | — | — | — | — | 4.83 | 7.90 | 0.89 | 0.88 | 0.90 |
| Debt / EBITDA | 18.56 | 18.56 | — | — | — | — | — | 296.28 | 82.43 | 32.72 | 170.13 |
| Net Debt / Equity | — | 7.91 | -0.05 | -0.17 | -0.08 | -0.30 | 4.65 | 7.71 | 0.86 | 0.85 | 0.87 |
| Net Debt / EBITDA | 18.49 | 18.49 | -0.13 | -0.48 | — | -4.78 | — | 289.15 | 79.84 | 31.58 | 163.34 |
| Debt / FCF | — | 143.95 | -0.26 | -1.67 | -0.70 | -28.77 | — | — | 90.61 | 66.23 | 0.88 |
| Interest Coverage | 1.50 | 1.50 | 0.97 | 0.87 | -0.90 | 3.16 | -2.42 | 0.13 | 0.31 | 2.92 | 0.38 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.01 | 0.01 | — | — | — | — | — | — | 525.81 | 825.51 | 478.50 |
| Quick Ratio | 0.01 | 0.01 | — | — | — | — | — | — | 549.74 | 832.35 | 452.49 |
| Cash Ratio | 0.00 | 0.00 | — | — | — | — | 0.04 | 0.02 | 524.19 | 823.15 | 477.20 |
| Asset Turnover | — | 0.06 | 0.02 | 0.04 | -0.09 | 0.00 | -0.04 | 0.02 | 0.00 | 0.03 | -0.02 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | 0.07 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 19.7% | 16.3% | 15.3% | 26.0% | 21.4% | 12.3% | 11.1% | 12.0% | 11.2% | 8.8% | 13.9% |
| Payout Ratio | 84.1% | 84.1% | — | — | — | 629.0% | — | — | — | 49.4% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 22.6% | 18.7% | — | — | — | 0.5% | — | — | — | 16.2% | — |
| FCF Yield | 7.3% | 7.4% | 26.6% | 16.0% | 18.7% | 1.5% | — | — | 8.7% | 10.8% | 938.9% |
| Buyback Yield | 1.2% | 1.2% | 0.1% | 1.2% | 1.2% | 0.0% | 0.1% | 6.9% | 0.0% | 0.0% | 1.8% |
| Total Shareholder Yield | 20.9% | 17.5% | 15.5% | 27.2% | 22.6% | 12.3% | 11.2% | 19.0% | 11.2% | 8.8% | 15.8% |
| Shares Outstanding | — | $94M | $52M | $43M | $24M | $16M | $13M | $12M | $8M | $8M | $7M |
Includes 30+ ratios · 19 years · Updated daily
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Quick answers to the most common questions about buying ARR stock.
ARMOUR Residential REIT, Inc.'s current P/E ratio is 4.4x. The historical average is 6.3x.
ARMOUR Residential REIT, Inc.'s current EV/EBITDA is 20.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 25.1x.
ARMOUR Residential REIT, Inc.'s return on equity (ROE) is 17.8%. The historical average is -1.6%.
Based on historical data, ARMOUR Residential REIT, Inc. is trading at a P/E of 4.4x. Compare with industry peers and growth rates for a complete picture.
ARMOUR Residential REIT, Inc.'s current dividend yield is 19.72% with a payout ratio of 84.1%.
ARMOUR Residential REIT, Inc. has 97.0% gross margin and 73.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
ARMOUR Residential REIT, Inc.'s Debt/EBITDA ratio is 18.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and rate sensitivity
Metrics are mathematically derived from official filings.
Deep Discount to Book, High Yield
ARR trades at 0.69x tangible book value and a 17.5% dividend yield, yet P/FFO is unavailable, suggesting the market prices in significant risk, per recent market data.
The 0.69x P/B is below peers like AGNC (0.88x) and NLY (0.90x), indicating the market applies a steeper discount to ARR's smaller scale and higher leverage. The 17.5% dividend yield is among the highest in the group, but with FFO data missing, the sustainability of that yield is uncertain. The implied cap rate, derived from NOI and enterprise value, is not directly calculable from the data, but the wide gap between gross margin (97%) and net margin (24.7%) underscores the earnings drag from financing costs.
Net Interest Margin Squeeze
NOI margin averaged 94.1% in 2026Q2, but net margin was only 24.7%, revealing the heavy drag from interest expense on 7.94x leverage, as reported in financial statements.
The 70-percentage-point gap between NOI margin and net margin highlights the extreme sensitivity of ARR's profitability to short-term borrowing costs. With interest coverage at 1.61x in 2026Q2, even a modest rise in repo rates could push coverage below 1.0x, threatening dividend coverage. The 444% YoY revenue growth in 2026Q2 appears to be driven by hedging gains and portfolio expansion rather than organic spread improvement, as the net interest spread remains under pressure from the inverted yield curve.
Payout Ratio Hides Volatility
FFO payout ratio was 37.7% in 2025Q4, but FFO swung from -$0.90 to $1.91 per share in recent quarters, indicating that dividend coverage is not stable, based on SEC filings.
The low payout ratio in 2025Q4 suggests a comfortable margin, but the extreme volatility in FFO per share—ranging from -$0.90 in 2025Q2 to $1.91 in 2025Q4—means that the dividend is not consistently covered by distributable earnings. AFFO is undisclosed, so the true cash-generating ability remains uncertain. Investors should monitor whether the 17.5% dividend yield is supported by core earnings or merely reflects a temporary spike in fair value gains.
Leverage Amplifies Risk
Debt-to-equity stood at 7.54x in 2026Q2, with interest coverage of only 1.61x, indicating a thin buffer against rising short-term rates, as per financial statements.
ARR's leverage is among the highest in the peer group, comparable to IVR's 7.05x but with a lower interest coverage ratio. The reliance on short-term repo funding exposes the company to margin call risk, as evidenced by the minimal cash buffer of $83.7M against $19.4B in debt. The 7.94x debt-to-equity ratio in 2025Q4 suggests leverage has not been reduced despite the volatile earnings environment, and the inverted yield curve continues to compress the net interest spread.
Agency MBS Concentration Risk
ARR's portfolio is 100% Agency MBS, with zero tangible assets, and occupancy metrics are not applicable, but the concentration in US housing debt creates significant interest rate sensitivity, per company disclosures.
The lack of diversification beyond Agency MBS means ARR's performance is entirely tied to US housing and interest rate movements. The 97% gross margin reflects the high yield on these assets, but the 24.7% net margin shows how quickly financing costs erode returns. G&A efficiency is not directly observable, but the small scale relative to peers like AGNC suggests higher operating expense ratios, which may further pressure net income.
P/E Misleads in mREITs
ARR's P/E of 4.99 is misleading because it ignores depreciation-like premium amortization and fair value swings, so investors should use P/FFO or P/AFFO instead, as per industry analysis.
Standard P/E is distorted for mortgage REITs because GAAP earnings include unrealized gains and losses on MBS and derivatives, which are not indicative of core earning power. For ARR, the 4.99x P/E appears cheap, but it fails to capture the economic cost of MBS premium amortization and the volatility in book value. The appropriate metric is P/FFO, which is currently unavailable, but the wide swings in FFO per share suggest that even FFO may need adjustment for core earnings to assess dividend sustainability.