ADAMAS TRUST INC (ADAM) Stock Fundamental Analysis
USA - NASDAQ:ADAM - US6496048405 - REIT
6.88 USD
+0.1 (+1.47%)
6.88 USD
0 (0%)
Taking everything into account, ADAM scores 4 out of 10 in our fundamental rating. ADAM was compared to 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of ADAM have multiple concerns. ADAM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ADAM had positive earnings in the past year.
In the past year ADAM had a positive cash flow from operations.
In the past 5 years ADAM reported 4 times negative net income.
ADAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.16%, ADAM perfoms like the industry average, outperforming 46.97% of the companies in the same industry.
The Return On Equity of ADAM (1.26%) is comparable to the rest of the industry.
The Return On Invested Capital of ADAM (0.29%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 1.26% | ||
| ROIC | 0.29% |
ROA(3y)-2.6%
ROA(5y)-2.47%
ROE(3y)-10.8%
ROE(5y)-8.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ADAM has a Profit Margin of 2.78%. This is comparable to the rest of the industry: ADAM outperforms 46.97% of its industry peers.
ADAM's Operating Margin of 6.09% is in line compared to the rest of the industry. ADAM outperforms 40.91% of its industry peers.
ADAM has a Gross Margin of 31.90%. This is in the better half of the industry: ADAM outperforms 69.70% of its industry peers.
In the last couple of years the Gross Margin of ADAM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 2.78% | ||
| GM | 31.9% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-30.68%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADAM is destroying value.
Compared to 1 year ago, ADAM has about the same amount of shares outstanding.
Compared to 5 years ago, ADAM has less shares outstanding
ADAM has a worse debt/assets ratio than last year.
2.2 Solvency
ADAM has an Altman-Z score of -0.62. This is a bad value and indicates that ADAM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.62, ADAM is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
The Debt to FCF ratio of ADAM is 136.55, which is on the high side as it means it would take ADAM, 136.55 years of fcf income to pay off all of its debts.
ADAM has a Debt to FCF ratio (136.55) which is comparable to the rest of the industry.
ADAM has a Debt/Equity ratio of 6.46. This is a high value indicating a heavy dependency on external financing.
ADAM has a Debt to Equity ratio of 6.46. This is comparable to the rest of the industry: ADAM outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.46 | ||
| Debt/FCF | 136.55 | ||
| Altman-Z | -0.62 |
ROIC/WACC0.06
WACC5.25%
2.3 Liquidity
A Current Ratio of 0.06 indicates that ADAM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.06, ADAM is doing worse than 63.64% of the companies in the same industry.
ADAM has a Quick Ratio of 0.06. This is a bad value and indicates that ADAM is not financially healthy enough and could expect problems in meeting its short term obligations.
ADAM has a Quick ratio of 0.06. This is in the lower half of the industry: ADAM underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
ADAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 112.10%, which is quite impressive.
ADAM shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.19%.
Measured over the past years, ADAM shows a decrease in Revenue. The Revenue has been decreasing by -7.75% on average per year.
EPS 1Y (TTM)112.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%86.21%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y11.51%
Revenue growth 5Y-7.75%
Sales Q2Q%-70.81%
3.2 Future
Based on estimates for the next years, ADAM will show a very strong growth in Earnings Per Share. The EPS will grow by 44.79% on average per year.
ADAM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 37.91% yearly.
EPS Next Y170.78%
EPS Next 2Y70.58%
EPS Next 3Y44.79%
EPS Next 5YN/A
Revenue Next Year105.68%
Revenue Next 2Y61.88%
Revenue Next 3Y37.91%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.21 indicates a quite expensive valuation of ADAM.
Based on the Price/Earnings ratio, ADAM is valued a bit more expensive than 68.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, ADAM is valued a bit more expensive.
With a Price/Forward Earnings ratio of 7.72, the valuation of ADAM can be described as very cheap.
Based on the Price/Forward Earnings ratio, ADAM is valued a bit cheaper than 65.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADAM to the average of the S&P500 Index (22.94), we can say ADAM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.21 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADAM is valued cheaper than 80.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADAM is valued a bit cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 68.83 |
4.3 Compensation for Growth
ADAM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ADAM's earnings are expected to grow with 44.79% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y70.58%
EPS Next 3Y44.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.57%, ADAM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.72, ADAM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ADAM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.57% |
5.2 History
On average, the dividend of ADAM grows each year by 8.89%, which is quite nice.
ADAM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)8.89%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
667.71% of the earnings are spent on dividend by ADAM. This is not a sustainable payout ratio.
The dividend of ADAM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP667.71%
EPS Next 2Y70.58%
EPS Next 3Y44.79%
6.88
+0.1 (+1.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners58.53%
Inst Owner ChangeN/A
Ins Owners7.09%
Ins Owner ChangeN/A
Market Cap621.33M
Analysts76.67
Price Target8.01 (16.42%)
Short Float %2.56%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.57% |
Yearly Dividend1.29
Dividend Growth(5Y)8.89%
DP667.71%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)70.74%
Min EPS beat(2)-117.99%
Max EPS beat(2)259.48%
EPS beat(4)2
Avg EPS beat(4)21.05%
Min EPS beat(4)-945.64%
Max EPS beat(4)888.35%
EPS beat(8)3
Avg EPS beat(8)-107.9%
EPS beat(12)4
Avg EPS beat(12)-574.51%
EPS beat(16)4
Avg EPS beat(16)-704.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-6.68%
Max Revenue beat(2)4.97%
Revenue beat(4)3
Avg Revenue beat(4)276.79%
Min Revenue beat(4)-6.68%
Max Revenue beat(4)728.36%
Revenue beat(8)7
Avg Revenue beat(8)364.65%
Revenue beat(12)10
Avg Revenue beat(12)316.82%
Revenue beat(16)13
Avg Revenue beat(16)250.2%
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)6.18%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.73%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-4.48%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.21 | ||
| Fwd PE | 7.72 | ||
| P/S | 0.99 | ||
| P/FCF | 9.51 | ||
| P/OCF | 6.66 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 68.83 |
EPS(TTM)0.19
EY2.76%
EPS(NY)0.89
Fwd EY12.96%
FCF(TTM)0.72
FCFY10.51%
OCF(TTM)1.03
OCFY15.01%
SpS6.93
BVpS15.29
TBVpS15.29
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 1.26% | ||
| ROCE | 0.69% | ||
| ROIC | 0.29% | ||
| ROICexc | 0.29% | ||
| ROICexgc | 0.29% | ||
| OM | 6.09% | ||
| PM (TTM) | 2.78% | ||
| GM | 31.9% | ||
| FCFM | 10.44% |
ROA(3y)-2.6%
ROA(5y)-2.47%
ROE(3y)-10.8%
ROE(5y)-8.12%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-30.68%
GM growth 5Y-1.48%
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.46 | ||
| Debt/FCF | 136.55 | ||
| Debt/EBITDA | 137.29 | ||
| Cap/Depr | 104.07% | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 0.1 | ||
| Cash Conversion | 143.54% | ||
| Profit Quality | 375.74% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | -0.62 |
F-Score5
WACC5.25%
ROIC/WACC0.06
Cap/Depr(3y)153.69%
Cap/Depr(5y)N/A
Cap/Sales(3y)61.91%
Cap/Sales(5y)40.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)112.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%86.21%
EPS Next Y170.78%
EPS Next 2Y70.58%
EPS Next 3Y44.79%
EPS Next 5YN/A
Revenue 1Y (TTM)24.19%
Revenue growth 3Y11.51%
Revenue growth 5Y-7.75%
Sales Q2Q%-70.81%
Revenue Next Year105.68%
Revenue Next 2Y61.88%
Revenue Next 3Y37.91%
Revenue Next 5YN/A
EBIT growth 1Y211.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y197.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4384.46%
OCF growth 3Y-53.38%
OCF growth 5Y-16.71%