Angel Oak Mortgage REIT Inc. Common Stock (AOMR)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Angel Oak Mortgage REIT and see a leveraged mortgage investor, not a simple landlord. It buys first-lien nonqualified mortgage loans and related securities. At the $7.07 close on 2026-10-13, FairStock calculates a P/B of 0.70 and a P/E of 9.55. That discount to book is tempting, but book value in this business is only as good as the marks on the loans and securities. The filed record is uneven. FY2025 net income was $44.0M, or $1.80 per diluted share; FY2024 was $28.8M, or $1.17; FY2023 was $33.7M, or $1.35. Then fiscal Q1 2026 lost $7.4M, or $0.30 per diluted share, followed by fiscal Q2 2026 net income of $3.4M, or $0.14 per diluted share. That is not the steady earnings I want from an income vehicle. FairStock's ROE is 7.77%, and D/E is 10.62, so returns are modest on a heavily levered balance sheet. The 16.20% dividend yield is either a margin-of-safety signal or a red flag; without CET1, net interest margin, or combined ratio data, I cannot fully judge credit and funding risk. Piotroski is 5/9, middling. The Lynch category is Turnaround, returned to profit after a loss within the last three years, which fits the uneven pattern. I would want a wider discount or clearer credit visibility before calling this a classic Graham bargain. The asset discount may pay, but leverage can turn a cheap book value into a shrinking one.

In plain English: Angel Oak Mortgage REIT is a finance company that owns and invests in U.S. home loans that do not meet standard agency rules, along with related mortgage securities. It has made money in recent years, but quarterly profits have bounced around and it uses a lot of borrowed money, so the business looks risky. The stock price looks cheap compared with the company's accounting value, but the very high dividend and uneven earnings mean cheap could be a warning.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer