Angel Oak Mortgage (AOMR) AI Stock Analysis

• Market Cap: $231.71M
• Dividend Yield: 13.13%
• Average Volume (3M): 202.64K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.49
• Revenue Growth: 75.08%
• EPS Growth: -21.03%
• Country: US
• Employees: 300
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Mortgage
• EPS (TTM): 0.11
• Shares Outstanding: 23,765,202
• 10 Day Avg. Volume: 188,722
• 30 Day Avg. Volume: 202,638
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 9.59
• Enterprise Value/Revenue: 20.74
• Enterprise Value/Gross Profit: 22.99
• Enterprise Value/Ebitda: 42.37
• 1Y Price Target: $10.50
• Price Target Upside: 7.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $10.50 ▲(7.69% Upside)

Angel Oak Mortgage's overall stock score is driven by a mix of factors. The financial performance raises concerns due to revenue instability and high leverage, which are significant risks. However, the technical analysis and valuation suggest potential upside, with the stock showing bullish momentum and being attractively valued. The earnings call and corporate events provide some positive signals, but are overshadowed by financial challenges.

Positive Factors

Securitization Activity

Strong securitization activity indicates effective capital market engagement, enhancing liquidity and potential earnings growth.

Interest Income Growth

Growth in interest income reflects improved portfolio performance and effective interest rate management, supporting revenue stability.

Loan Facility Extension

Extending the loan facility ensures continued financial support and operational stability, enhancing stakeholder confidence.

Negative Factors

Revenue Instability

Revenue instability poses a risk to financial health, impacting long-term growth and operational planning.

High Leverage

High leverage can strain financial flexibility, increasing vulnerability to interest rate changes and economic downturns.

Negative Cash Flows

Negative cash flows highlight liquidity challenges, limiting the company's ability to invest in growth and manage debt.

Angel Oak Mortgage Business Overview & Revenue Model

Company Description

Angel Oak Mortgage, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Angel Oak Mortgage, Inc. was incorporated in 2018 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Angel Oak Mortgage generates revenue through the interest income earned from its mortgage loan portfolio. The company acquires mortgage loans at a discount and earns a yield spread between the interest paid by borrowers and the cost of funds. Additionally, AOMR benefits from securitization of mortgage loans, which involves packaging loans into securities and selling them to investors, thereby generating income from the sale as well as ongoing servicing fees. Strategic partnerships with mortgage originators and financial institutions enhance its ability to source a diverse range of mortgage loans, contributing to its revenue streams.

Angel Oak Mortgage Financial Statement Overview

Summary

Angel Oak Mortgage's financial performance is concerning due to revenue instability, high leverage, and negative cash flows. While there are positive signs like improved net profit margins and liquidity, the overall financial health suggests potential instability and risk.

Income Statement

Angel Oak Mortgage's income statement shows significant volatility. The company experienced negative revenue growth in 2022 followed by a sharp recovery in 2023, but then zero revenue in 2024, indicating instability in revenue generation. The net profit margin improved in 2024, which is a positive sign, but overall, the margins have been inconsistent over the years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating potential risk due to substantial leverage. Equity has decreased over time, reducing the equity ratio. However, the company has maintained a reasonable level of cash and short-term investments, which provides some liquidity cushion.

Cash Flow

Angel Oak Mortgage's cash flow statement exhibits significant negative operating and free cash flows in recent years, reflecting potential liquidity challenges. The operating cash flow to net income ratio is negative, showing inefficiencies in converting income into cash. Despite past positive free cash flow, recent trends are concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.17M	51.46M	54.86M	-157.95M	41.76M	10.38M
Gross Profit	96.69M	39.03M	42.49M	-162.42M	36.38M	2.48M
EBITDA	52.46M	105.51M	102.01M	-128.27M	34.19M	8.23M
Net Income	37.45M	28.75M	33.71M	-187.83M	21.11M	736.00K
Balance Sheet
Total Assets	2.55B	2.27B	2.31B	2.95B	2.58B	509.66M
Cash, Cash Equivalents and Short-Term Investments	40.50M	40.76M	41.63M	29.27M	40.80M	43.57M
Total Debt	207.22M	1.82B	1.65B	1.64B	1.47B	81.91M
Total Liabilities	2.31B	2.03B	2.05B	2.71B	2.09B	261.35M
Stockholders Equity	246.39M	238.97M	256.11M	236.48M	491.39M	248.31M
Cash Flow
Free Cash Flow	-418.55M	-221.43M	306.40M	-331.13M	-1.57B	34.41M
Operating Cash Flow	-418.55M	-221.43M	306.40M	-331.13M	-1.57B	34.41M
Investing Cash Flow	126.13M	120.84M	-194.11M	664.33M	-460.48M	-52.44M
Financing Cash Flow	290.68M	98.99M	-107.66M	-345.65M	2.03B	54.80M

Angel Oak Mortgage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AOMR, the sentiment is Positive. The current price of 9.75 is above the 20-day moving average (MA) of 9.67, above the 50-day MA of 9.33, and above the 200-day MA of 8.94, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 48.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AOMR.

Angel Oak Mortgage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITT	67 Neutral	$244.66M	8.93	8.66%	10.25%	22.45%	-44.01%
SEVN	66 Neutral	$164.23M	10.55	5.71%	12.29%	-16.74%	-32.89%
Sector *	63 Neutral	$7.03B	13.25	-0.30%	6.93%	4.01%	-25.47%
AOMR	63 Neutral	$231.71M	6.30	14.91%	13.13%	75.08%	-21.03%
NREF	61 Neutral	$268.49M	6.17	21.74%	13.20%	25.17%	―
EARN	60 Neutral	$212.59M	15.11	6.89%	16.96%	271.03%	31.81%
ACRE	48 Neutral	$266.78M	―	-3.30%	16.49%	-27.60%	62.75%

Angel Oak Mortgage Corporate Events

Angel Oak Mortgage Schedules Q2 2025 Results Call

On July 22, 2025, Angel Oak Mortgage REIT, Inc. announced the release date for its second quarter 2025 financial results and scheduled a conference call for August 5, 2025. This announcement is part of the company’s ongoing efforts to keep stakeholders informed and engaged, reflecting its commitment to transparency and communication in the competitive U.S. mortgage market.

Angel Oak Mortgage Extends Loan Facility with Bank

On June 24, 2025, Angel Oak Mortgage REIT, Inc. and its subsidiaries renewed their loan financing facility with Multinational Bank 1, extending the expiration date from September 25, 2025, to December 25, 2025. This renewal, in line with the original Master Repurchase Agreement from April 13, 2022, ensures continued financial support and stability for the company, potentially impacting its operations and stakeholder confidence positively.

Angel Oak Mortgage Appoints New Director Amid Changes

On June 17, 2025, Angel Oak Mortgage REIT, Inc. appointed Tian ce (David) Zhong as a new director following the resignation of a previous board member. This appointment is part of a shareholder rights agreement with Morgan Stanley & Co. LLC, allowing them to designate a nominee to the board. Mr. Zhong, who is not considered independent by NYSE standards, will not receive compensation for his role and has not been assigned to any board committees. This move reflects the company’s ongoing collaboration with significant investors to maintain strategic governance and oversight.

Angel Oak Mortgage Director Resigns, Replacement Announced

On June 4, 2025, Edward M. Cummings announced his resignation from the Board of Directors of Angel Oak Mortgage REIT, Inc., effective June 10, 2025. His resignation is not due to any disagreements with the company’s operations or policies. The vacancy on the Board will be filled by a nominee designated by Morgan Stanley & Co. LLC, as per a shareholder rights agreement.