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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on AOMR

Angel Oak Mortgage's recent performance was driven by strong Q4 earnings, beating estimates by $0.17 per share. The company's revenue also surpassed expectations. Additionally, the company's specialized focus on non-qualified mortgages (non-QMs) targeting borrowers outside typical eligibility requirements has contributed to its growth. The issuance of high-yield debentures, such as Angel Oak Mortgage REIT (AOMR), has also generated interest from investors. Preliminary ratings assigned to Angel Oak Mortgage Trust transactions by KBRA have also provided a positive outlook.

1.c. Company Highlights

2. Angel Oak Mortgage REIT's Q3 2025 Earnings: A Closer Look

Angel Oak Mortgage REIT reported a net interest income growth of 13% compared to Q3 2024 and a 2% increase compared to Q2 2025. The company's GAAP book value per share increased by 2.2% to $10.60 per share as of September 30, 2025, from $10.37 as of June 30, 2025. However, the actual EPS came out at $0.02, significantly lower than the estimated $0.28. The company's cash flow dividend coverage increased and is expected to continue its growth trend.

Publication Date: Nov -21

📋 Highlights
  • Net Interest Income Growth:: 13% YoY and 2% QoQ increase to $X million.
  • GAAP Book Value Per Share:: Rose 2.2% to $10.60 from $10.37 in Q2.
  • Cash Flow Dividend Coverage:: Improved, supporting $0.32/share dividend (payable Nov 26, 2025).
  • Delinquency Rate:: 2.2% of loans 90+ days delinquent, below peer averages.
  • Capital Reallocation:: $19M released by retiring legacy deals, reinvested into higher-yield assets.

Financial Performance

The company's revenue growth is expected to be 17.5% next year, according to analyst estimates. With a dividend yield of 15.65%, the stock appears attractive to income-seeking investors. The company's decision to declare a $0.32 per share common dividend, which will be paid on November 26, 2025, is in line with its commitment to returning value to shareholders.

Operational Highlights

The company executed on several key initiatives during the quarter, including successfully calling and retiring 2 legacy vintage deals, which released $19 million of capital to be reinvested into higher-yielding new loan purchases and other earnings-accretive uses. The company's securitization strategy has shifted from waiting for large deals to consistently entering the market, which has helped tighten its spreads and reduce risk on its balance sheets.

Valuation

With a Price-to-Book Ratio of 0.71, the stock appears to be undervalued relative to its book value. The company's Net Interest Margin (NIM) is not explicitly stated, but the increase in net interest income suggests a stable or improving NIM. The dividend yield of 15.65% is attractive, but the company's payout ratio should be monitored to ensure sustainability.

Credit Performance

The company's credit performance continues to be strong, with a total portfolio weighted average percentage of loans 90-plus days delinquent at 2.2%. As the company's management stated, "we expect that throughout the credit cycle, this outperformance will lead to fewer defaults and lower credit losses than comparable non-QM securitization platforms."

Outlook

The company's focus on non-QM loans and its decision to maintain a portfolio of $75-$150 million in HELOCs and securitize them off over the coming quarters is expected to drive future growth. With a consistent securitization strategy in place, the company is well-positioned to navigate the current market environment.

3. NewsRoom

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KBRA Assigns Preliminary Ratings to Angel Oak Mortgage Trust 2025-12 (AOMT 2025-12)

Nov -18

Source: businesswire.com

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Angel Oak Mortgage REIT, Inc. (AOMR) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Angel Oak Mortgage (AOMR) Lags Q3 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

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Angel Oak Mortgage Solutions Launches Industry-First Rental AVM for DSCR Loans

Nov -04

Source: businesswire.com

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Critical Contrast: Angel Oak Mortgage REIT (NYSE:AOMR) & Apollo Commercial Real Estate Finance (NYSE:ARI)

Oct -26

Source: defenseworld.net

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Dividend Power Dogs: 13 Ideal Safer October Stars

Oct -21

Source: seekingalpha.com

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KBRA Assigns Preliminary Ratings to Angel Oak Mortgage Trust 2025-11 (AOMT 2025-11)

Oct -16

Source: businesswire.com

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Angel Oak Mortgage Solutions Expands Non-QM Product Line with Launch of 5-Year and 7-Year ARM Offerings

Oct -09

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Mortgage-Related Assets

Expected Growth: 7.5%

Growing demand for mortgage financing, increasing homeownership rates, and low interest rates drive growth in mortgage-related assets, providing a stable income stream through interest and principal payments.

7. Detailed Products

Non-QM Loans

Non-Qualified Mortgage loans that don't conform to traditional QM loan standards, offering more flexible credit and income requirements.

Jumbo Loans

Large mortgage loans exceeding conforming loan limits, offering higher loan amounts for luxury properties.

Interest-Only Loans

Mortgage loans allowing borrowers to pay only the interest on the loan for a set period, reducing monthly payments.

Bank Statement Loans

Mortgage loans using bank statements to verify income, ideal for self-employed borrowers or those with non-traditional income.

Investor Cash Flow Loans

Mortgage loans for real estate investors, using property cash flow to qualify for the loan.

Fix and Flip Loans

Short-term, high-interest loans for real estate investors to finance fix-and-flip projects.

8. Angel Oak Mortgage, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Angel Oak Mortgage, Inc. operates in a highly competitive market, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Angel Oak Mortgage, Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative mortgage options.

Bargaining Power Of Suppliers

Angel Oak Mortgage, Inc. has a diversified supplier base, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the mortgage industry is moderate, as it requires significant capital and regulatory compliance.

Intensity Of Rivalry

The mortgage industry is highly competitive, with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.59%
Debt Cost 4.21%
Equity Weight 13.41%
Equity Cost 10.57%
WACC 5.06%
Leverage 645.60%

11. Quality Control: Angel Oak Mortgage, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Angel Oak Mortgage

A-Score: 7.1/10

Value: 7.8

Growth: 6.9

Quality: 7.3

Yield: 10.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Chicago Atlantic

A-Score: 6.7/10

Value: 6.1

Growth: 9.1

Quality: 4.3

Yield: 10.0

Momentum: 1.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
AG Mortgage Investment Trust

A-Score: 6.5/10

Value: 7.6

Growth: 3.3

Quality: 5.8

Yield: 10.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
PennyMac Mortgage Trust

A-Score: 6.2/10

Value: 7.6

Growth: 2.4

Quality: 5.4

Yield: 10.0

Momentum: 3.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Seven Hills Realty

A-Score: 6.0/10

Value: 7.3

Growth: 2.7

Quality: 7.9

Yield: 10.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Lument Finance Trust

A-Score: 5.9/10

Value: 8.0

Growth: 3.3

Quality: 5.6

Yield: 10.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.84$

Current Price

8.84$

Potential

-0.00%

Expected Cash-Flows