ARMOUR Residential Net Income vs. Return On Equity
Taking into consideration ARMOUR Residential's profitability measurements, ARMOUR Residential REIT may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess ARMOUR Residential's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices.
Please note, there is a significant difference between ARMOUR Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine if ARMOUR Residential is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ARMOUR Residential's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
For ARMOUR Residential profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ARMOUR Residential to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ARMOUR Residential REIT utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ARMOUR Residential's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ARMOUR Residential REIT over time as well as its relative position and ranking within its peers.
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ARMOUR Residential REIT Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ARMOUR Residential's current stock value. Our valuation model uses many indicators to compare ARMOUR Residential value to that of its competitors to determine the firm's financial worth. ARMOUR Residential REIT is number one stock in net income category among its peers. It is rated fourth in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value ARMOUR Residential by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ARMOUR Residential's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.ARMOUR Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
ARMOUR Residential |
| = | 15.36 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
ARMOUR Residential |
| = | -0.28 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
ARMOUR Return On Equity Comparison
ARMOUR Residential is currently under evaluation in return on equity category among its peers.
ARMOUR Residential Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ARMOUR Residential, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ARMOUR Residential will eventually generate negative long term returns. The profitability progress is the general direction of ARMOUR Residential's change in net profit over the period of time. It can combine multiple indicators of ARMOUR Residential, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
ARMOUR Residential REIT, Inc. invests in residential mortgage backed securities in the United States. ARMOUR Residential REIT, Inc. was founded in 2008 and is based in Vero Beach, Florida. Armour Residential operates under REITMortgage classification in the United States and is traded on New York Stock Exchange.
ARMOUR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ARMOUR Residential. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ARMOUR Residential position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ARMOUR Residential's important profitability drivers and their relationship over time.
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Use Investing Themes to Complement your ARMOUR Residential position
In addition to having ARMOUR Residential in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Asset Allocation ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Asset Allocation ETFs theme has 146 constituents at this time.
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Other Information on Investing in ARMOUR Preferred Stock
To fully project ARMOUR Residential's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ARMOUR Residential REIT at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ARMOUR Residential's income statement, its balance sheet, and the statement of cash flows.