ARR

ARMOUR Residential REIT

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Real Estate

industry

REIT - Mortgage

Exchange

NYSE

County of HQ

Canada

Next Earnings Date

04/22/26

Business Summary

Descartes Systems Group operates a software platform model, generating revenue by providing application-based solutions that customers integrate into their operational workflows. The core economic engine is recurring software revenue layered on top of mission-critical functionality, which drives retention and predictable cash generation. Because software distribution carries high incremental margins, growth in sales can disproportionately lift earnings once fixed costs are absorbed. The moat is embedded in integration depth and switching friction—once customers rely on the platform inside daily operations, displacement risk declines and pricing power stabilizes cash flow.

VALUATION

P/E

5.4

Market Cap ($M USD)

$2,169

Forward P/E

5.6

PEG

0.9

PRICE TO SALES

5

PRICE TO BOOK

1

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

16.30%

Annual Payout

$2.88

Payout Ratio

87.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-12.00%

Financial Health & Profitability

Earnings Per Share

$3.31

Next Year EPS Growth Estimate

$3.14

Next Year Revenue Growth Estimate

14.10%

Return on Equity (ROE)

13.70%

Operating Margin

95.20%

Debt-to-Equity

0

Piotroski F-Score

5

Altman Z-Score

0.1

Return on Invested Capital (ROIC)

42.10%%

Current Ratio

0.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 33.8x earnings with a Forward P/E of 19.6, the market is clearly pricing in a meaningful earnings inflection. The compression from current P/E to forward suggests anticipated profitability acceleration, but a PEG of 2.1 implies that growth is not coming cheaply. Financially, the company is extremely safe—an Altman Z-Score of 13 signals near-zero distress risk, and a Current Ratio of 2.2 reinforces balance sheet stability. This is not a deep value mispricing; it is a quality compounder trading at a moderated growth premium, with downside protected by fortress-level solvency and upside dependent on execution.

AI Exposure / Tech Reliance

As a Software - Application company in the Technology sector, DSGX operates in a segment structurally aligned with AI-driven workflow automation and data-centric optimization. Software businesses with scalable platforms are typically well positioned to integrate AI features without heavy capital intensity, preserving margins. The key resilience factor here is operating leverage embedded in software delivery rather than reliance on physical assets.

The Bull Case

A GARP investor buys this because the fundamentals are internally consistent and institutionally credible. ROIC at 10.90% and ROE at 11.00% indicate disciplined capital allocation rather than reckless growth, while a Piotroski F-Score of 7 signals operational strength and improving financial quality. Operating Margin of 10.10% demonstrates profitability with room for expansion, and a Debt/Equity ratio of 30.20% shows moderate leverage without balance sheet strain. The Forward P/E of 19.6 against an established $5,406M market cap suggests the business is transitioning into a more earnings-efficient phase, which—if realized—would justify multiple stability and potentially multiple expansion.

The Bear Case

The valuation still carries risk. A PEG Forward of 2.1 is not cheap for a company generating 10.10% operating margins and 11.00% ROE; that is paying growth multiples for mid-tier profitability metrics. Debt/Equity at 30.20% is manageable but removes some flexibility if margins compress. With a TTM Yield of 0 and no dividend support, shareholders are entirely dependent on capital appreciation, and at 33.8x trailing earnings, any execution miss could lead to sharp multiple contraction. This is a stock priced for steady progress, not disappointment.

Market Sentiment & Smart Money

Short Interest %

0.00%

Analyst Consensus

2.43

Average Analyst Price Target

$18.50

Institutional Ownership %

54.60%

1-Year Beta

0.7

Insider Buying % (6 Mo)

0.20%%

Distance to 52-Week High

91.50%%

Distance to 52-Week Low

129.40%%