ARMOUR Residential REIT Inc. (ARR)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

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

I am wary of headline cheapness in a mortgage REIT. ARMOUR owns agency mortgage-backed securities, so its economics are mainly spread and interest-rate management, not a wide moat. At the 2026-10-26 close of $12.68, FairStock shows P/E 2.88, P/B 0.67 and a 19.62% dividend yield; on the surface that is Graham cheap, but the reported record is erratic. Fiscal year 2023 (year ended 2023-12-31) had net loss $67.9M and diluted EPS -$1.86; fiscal year 2024 (year ended 2024-12-31) had net loss $14.4M and EPS -$0.51; fiscal year 2025 (year ended 2025-12-31) had net income $322.7M and EPS $3.30. Then fiscal Q1 2026 (quarter ended 2026-03-31) lost $54.9M, EPS -$0.49; fiscal Q2 2026 (quarter ended 2026-06-30) earned $114.8M, EPS $0.86; and fiscal Q3 2026 (quarter ended 2026-09-30) lost $323.7M, EPS -$2.26. That is not stable earning power. D/E 7.57 is high leverage for a portfolio whose book value can move with rates; Piotroski 4/9 and ROCE 2.21% reinforce caution. FairStock's ROE of 20.33% and Lynch TURNAROUND label reflect a rebound, not a durable franchise. CET1, net interest margin and combined ratio are not in the data. Price may be discounting real risk rather than offering a margin of safety.

In plain English: ARMOUR Residential REIT owns mortgage-backed securities guaranteed by U.S. government agencies, and its results swing with interest rates and borrowing costs. The business looks weak and unsteady because it just posted a large quarterly loss after earlier profits. The stock looks cheap compared with stated accounting value and reported earnings, but that cheapness may reflect real risk in its leveraged portfolio.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · 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) · 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