DYNEX CAPITAL INC (DX) Stock Fundamental Analysis
NYSE:DX - New York Stock Exchange, Inc. - US26817Q8868 - REIT - Currency: USD
DX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While DX is still in line with the averages on profitability rating, there are concerns on its financial health. DX is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year DX was profitable.
DX had a positive operating cash flow in the past year.
DX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DX (1.30%) is better than 84.62% of its industry peers.
The Return On Equity of DX (8.96%) is better than 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 8.96% | ||
| ROIC | N/A |
ROA(3y)1.61%
ROA(5y)2.5%
ROE(3y)7.47%
ROE(5y)11.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 33.39%, DX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Profit Margin of DX has declined.
Looking at the Gross Margin, with a value of 1.37%, DX is doing worse than 96.92% of the companies in the same industry.
DX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 33.39% | ||
| GM | 1.37% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-37.42%
PM growth 5YN/A
GM growth 3Y-75.33%
GM growth 5Y-47.03%
2. Health
2.1 Basic Checks
DX does not have a ROIC to compare to the WACC, probably because it is not profitable.
DX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DX has more shares outstanding
DX has a better debt/assets ratio than last year.
2.2 Solvency
DX has an Altman-Z score of -0.91. This is a bad value and indicates that DX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DX (-0.91) is worse than 83.08% of its industry peers.
The Debt to FCF ratio of DX is 456.03, which is on the high side as it means it would take DX, 456.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 456.03, DX is doing worse than 64.62% of the companies in the same industry.
A Debt/Equity ratio of 5.54 is on the high side and indicates that DX has dependencies on debt financing.
DX has a Debt to Equity ratio of 5.54. This is in the lower half of the industry: DX underperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 456.03 | ||
| Altman-Z | -0.91 |
ROIC/WACCN/A
WACC5.85%
2.3 Liquidity
DX has a Current Ratio of 0.06. This is a bad value and indicates that DX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DX (0.06) is worse than 78.46% of its industry peers.
DX has a Quick Ratio of 0.06. This is a bad value and indicates that DX is not financially healthy enough and could expect problems in meeting its short term obligations.
DX's Quick ratio of 0.06 is on the low side compared to the rest of the industry. DX is outperformed by 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
DX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.26%, which is quite impressive.
The earnings per share for DX have been decreasing by -18.72% on average. This is quite bad
DX shows a strong growth in Revenue. In the last year, the Revenue has grown by 73.74%.
Measured over the past years, DX shows a quite strong growth in Revenue. The Revenue has been growing by 13.32% on average per year.
EPS 1Y (TTM)108.26%
EPS 3Y-18.72%
EPS 5YN/A
EPS Q2Q%170%
Revenue 1Y (TTM)73.74%
Revenue growth 3Y68.26%
Revenue growth 5Y13.32%
Sales Q2Q%636.75%
3.2 Future
Based on estimates for the next years, DX will show a very strong growth in Earnings Per Share. The EPS will grow by 73.39% on average per year.
Based on estimates for the next years, DX will show a very strong growth in Revenue. The Revenue will grow by 200.49% on average per year.
EPS Next Y350.55%
EPS Next 2Y131.91%
EPS Next 3Y73.39%
EPS Next 5YN/A
Revenue Next Year635.19%
Revenue Next 2Y200.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 134.56, which means the current valuation is very expensive for DX.
Compared to the rest of the industry, the Price/Earnings ratio of DX indicates a slightly more expensive valuation: DX is more expensive than 67.69% of the companies listed in the same industry.
DX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.19.
A Price/Forward Earnings ratio of 8.54 indicates a reasonable valuation of DX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DX indicates a somewhat cheap valuation: DX is cheaper than 61.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. DX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.56 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
63.08% of the companies in the same industry are cheaper than DX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 DX's earnings are expected to grow with 73.39% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y131.91%
EPS Next 3Y73.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.96%, DX is a good candidate for dividend investing.
DX's Dividend Yield is rather good when compared to the industry average which is at 14.38. DX pays more dividend than 81.54% of the companies in the same industry.
DX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.96% |
5.2 History
The dividend of DX decreases each year by -11.72%.
DX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DX decreased in the last 3 years.
Dividend Growth(5Y)-11.72%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
DX pays out 110.96% of its income as dividend. This is not a sustainable payout ratio.
DP110.96%
EPS Next 2Y131.91%
EPS Next 3Y73.39%
12.11
+0.06 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners50.1%
Inst Owner Change25.15%
Ins Owners1.05%
Ins Owner Change5.6%
Market Cap1.30B
Analysts84
Price Target13.69 (13.05%)
Short Float %6.97%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.96% |
Yearly Dividend1.67
Dividend Growth(5Y)-11.72%
DP110.96%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-101.98%
Min EPS beat(2)-246.74%
Max EPS beat(2)42.78%
EPS beat(4)2
Avg EPS beat(4)-100.83%
Min EPS beat(4)-246.74%
Max EPS beat(4)42.78%
EPS beat(8)2
Avg EPS beat(8)-229.65%
EPS beat(12)2
Avg EPS beat(12)-163.61%
EPS beat(16)4
Avg EPS beat(16)-122.23%
Revenue beat(2)0
Avg Revenue beat(2)-67.64%
Min Revenue beat(2)-83.68%
Max Revenue beat(2)-51.61%
Revenue beat(4)1
Avg Revenue beat(4)-197%
Min Revenue beat(4)-794.38%
Max Revenue beat(4)141.66%
Revenue beat(8)3
Avg Revenue beat(8)-101.85%
Revenue beat(12)5
Avg Revenue beat(12)-49.21%
Revenue beat(16)6
Avg Revenue beat(16)-37.05%
PT rev (1m)0%
PT rev (3m)-1.23%
EPS NQ rev (1m)6.01%
EPS NQ rev (3m)62.07%
EPS NY rev (1m)-9.59%
EPS NY rev (3m)13.2%
Revenue NQ rev (1m)2.77%
Revenue NQ rev (3m)65.65%
Revenue NY rev (1m)-27.06%
Revenue NY rev (3m)25.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.56 | ||
| Fwd PE | 8.54 | ||
| P/S | 4.08 | ||
| P/FCF | 90.17 | ||
| P/OCF | 90.17 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.09
EY0.74%
EPS(NY)1.42
Fwd EY11.72%
FCF(TTM)0.13
FCFY1.11%
OCF(TTM)0.13
OCFY1.11%
SpS2.97
BVpS11.06
TBVpS11.06
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 8.96% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 33.39% | ||
| GM | 1.37% | ||
| FCFM | 4.53% |
ROA(3y)1.61%
ROA(5y)2.5%
ROE(3y)7.47%
ROE(5y)11.89%
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 3Y-37.42%
PM growth 5YN/A
GM growth 3Y-75.33%
GM growth 5Y-47.03%
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 456.03 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 13.55% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | -0.91 |
F-Score7
WACC5.85%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)108.26%
EPS 3Y-18.72%
EPS 5YN/A
EPS Q2Q%170%
EPS Next Y350.55%
EPS Next 2Y131.91%
EPS Next 3Y73.39%
EPS Next 5YN/A
Revenue 1Y (TTM)73.74%
Revenue growth 3Y68.26%
Revenue growth 5Y13.32%
Sales Q2Q%636.75%
Revenue Next Year635.19%
Revenue Next 2Y200.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y72.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-76.86%
FCF growth 3Y-53.91%
FCF growth 5Y-39.34%
OCF growth 1Y-76.86%
OCF growth 3Y-53.91%
OCF growth 5Y-39.34%