Arlington Asset Investment Corp.
Arlington Asset Investment Corp. Fundamental Analysis
Arlington Asset Investment Corp. (AAIC) shows weak financial fundamentals with a PE ratio of 25.62, profit margin of 17.77%, and ROE of 2.46%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAIC's fundamental strength across five key dimensions:
Efficiency Score
WeakAAIC struggles to generate sufficient returns from assets.
Valuation Score
ModerateAAIC shows balanced valuation metrics.
Growth Score
WeakAAIC faces weak or negative growth trends.
Financial Health Score
WeakAAIC carries high financial risk with limited liquidity.
Profitability Score
ModerateAAIC maintains healthy but balanced margins.
Key Financial Metrics
Is AAIC Expensive or Cheap?
P/E Ratio
AAIC trades at 25.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AAIC's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Arlington Asset Investment Corp. at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.06 times EBITDA. This is generally considered low.
How Well Does AAIC Make Money?
Net Profit Margin
For every $100 in sales, Arlington Asset Investment Corp. keeps $17.77 as profit after all expenses.
Operating Margin
Core operations generate 71.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.46 in profit for every $100 of shareholder equity.
ROA
Arlington Asset Investment Corp. generates $0.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arlington Asset Investment Corp. generates limited operating cash flow of $-1.36M, signaling weaker underlying cash strength.
Free Cash Flow
Arlington Asset Investment Corp. generates weak or negative free cash flow of $-1.36M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.05 in free cash annually.
FCF Yield
AAIC converts -1.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AAIC Stacks Against Its Sector Peers
| Metric | AAIC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.62 | 24.23 | Neutral |
| ROE | 2.46% | 659.00% | Weak |
| Net Margin | 17.77% | 4497.00% | Weak |
| Debt/Equity | 1.18 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.66 | 13.87 | Weak Liquidity |
| ROA | 0.54% | -1390.00% (disorted) | Weak |
AAIC outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arlington Asset Investment Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT