INVESCO MORTGAGE CAPITAL (IVR) Stock Fundamental Analysis
NYSE:IVR - New York Stock Exchange, Inc. - US46131B7047 - REIT - Currency: USD
IVR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. IVR may be in some trouble as it scores bad on both profitability and health. IVR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IVR was profitable.
In the past year IVR had a positive cash flow from operations.
IVR had negative earnings in 4 of the past 5 years.
IVR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IVR's Return On Assets of 0.61% is in line compared to the rest of the industry. IVR outperforms 52.31% of its industry peers.
Looking at the Return On Equity, with a value of 4.76%, IVR is in line with its industry, outperforming 50.77% of the companies in the same industry.
IVR's Return On Invested Capital of 0.25% is on the low side compared to the rest of the industry. IVR is outperformed by 63.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IVR is in line with the industry average of 1.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 4.76% | ||
| ROIC | 0.25% |
ROA(3y)-2.76%
ROA(5y)-5.95%
ROE(3y)-17.3%
ROE(5y)-37.42%
ROIC(3y)0.85%
ROIC(5y)1.09%
1.3 Margins
IVR's Profit Margin of 12.13% is fine compared to the rest of the industry. IVR outperforms 61.54% of its industry peers.
IVR's Profit Margin has declined in the last couple of years.
The Operating Margin of IVR (6.21%) is worse than 60.00% of its industry peers.
In the last couple of years the Operating Margin of IVR has declined.
IVR's Gross Margin of 8.71% is on the low side compared to the rest of the industry. IVR is outperformed by 87.69% of its industry peers.
IVR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.21% | ||
| PM (TTM) | 12.13% | ||
| GM | 8.71% |
OM growth 3Y-57.18%
OM growth 5Y-28.55%
PM growth 3YN/A
PM growth 5Y-21.64%
GM growth 3Y-52.9%
GM growth 5Y-24.03%
2. Health
2.1 Basic Checks
The number of shares outstanding for IVR has been increased compared to 1 year ago.
IVR has more shares outstanding than it did 5 years ago.
IVR has a worse debt/assets ratio than last year.
2.2 Solvency
IVR has an Altman-Z score of -1.79. This is a bad value and indicates that IVR is not financially healthy and even has some risk of bankruptcy.
IVR's Altman-Z score of -1.79 is on the low side compared to the rest of the industry. IVR is outperformed by 98.46% of its industry peers.
The Debt to FCF ratio of IVR is 26.72, which is on the high side as it means it would take IVR, 26.72 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IVR (26.72) is better than 78.46% of its industry peers.
A Debt/Equity ratio of 6.70 is on the high side and indicates that IVR has dependencies on debt financing.
With a Debt to Equity ratio value of 6.70, IVR is not doing good in the industry: 70.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.7 | ||
| Debt/FCF | 26.72 | ||
| Altman-Z | -1.79 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.02 indicates that IVR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.02, IVR is doing worse than 86.15% of the companies in the same industry.
A Quick Ratio of 0.02 indicates that IVR may have some problems paying its short term obligations.
With a Quick ratio value of 0.02, IVR is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
The earnings per share for IVR have decreased strongly by -45.84% in the last year.
IVR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -29.23% yearly.
IVR shows a decrease in Revenue. In the last year, the revenue decreased by -0.62%.
IVR shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -18.12% yearly.
EPS 1Y (TTM)-45.84%
EPS 3Y-10.6%
EPS 5Y-29.23%
EPS Q2Q%-44.21%
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y14.44%
Revenue growth 5Y-18.12%
Sales Q2Q%22.6%
3.2 Future
Based on estimates for the next years, IVR will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.64% on average per year.
IVR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y-19.11%
EPS Next 2Y-10.48%
EPS Next 3Y-10.64%
EPS Next 5YN/A
Revenue Next Year5.1%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 2.45, the valuation of IVR can be described as very cheap.
Based on the Price/Earnings ratio, IVR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of IVR to the average of the S&P500 Index (24.29), we can say IVR is valued rather cheaply.
The Price/Forward Earnings ratio is 3.03, which indicates a rather cheap valuation of IVR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IVR indicates a rather cheap valuation: IVR is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of IVR to the average of the S&P500 Index (20.42), we can say IVR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.45 | ||
| Fwd PE | 3.03 |
4.2 Price Multiples
IVR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IVR is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as IVR's earnings are expected to decrease with -10.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.48%
EPS Next 3Y-10.64%
5. Dividend
5.1 Amount
IVR has a Yearly Dividend Yield of 18.48%, which is a nice return.
IVR's Dividend Yield is rather good when compared to the industry average which is at 13.93. IVR pays more dividend than 86.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, IVR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.48% |
5.2 History
The dividend of IVR decreases each year by -36.18%.
IVR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-36.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
303.40% of the earnings are spent on dividend by IVR. This is not a sustainable payout ratio.
IVR's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP303.4%
EPS Next 2Y-10.48%
EPS Next 3Y-10.64%
7.18
-0.15 (-2.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.66%
Inst Owner Change3.13%
Ins Owners0.28%
Ins Owner Change-1.2%
Market Cap468.64M
Analysts52.31
Price Target8.33 (16.02%)
Short Float %12.7%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.48% |
Yearly Dividend1.91
Dividend Growth(5Y)-36.18%
DP303.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.39%
Min EPS beat(2)-26.44%
Max EPS beat(2)-14.34%
EPS beat(4)0
Avg EPS beat(4)-19.75%
Min EPS beat(4)-26.44%
Max EPS beat(4)-13.7%
EPS beat(8)3
Avg EPS beat(8)2.41%
EPS beat(12)7
Avg EPS beat(12)18.9%
EPS beat(16)10
Avg EPS beat(16)15.44%
Revenue beat(2)1
Avg Revenue beat(2)36.44%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)77.92%
Revenue beat(4)3
Avg Revenue beat(4)26.12%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)77.92%
Revenue beat(8)3
Avg Revenue beat(8)12.12%
Revenue beat(12)7
Avg Revenue beat(12)12.3%
Revenue beat(16)11
Avg Revenue beat(16)12.48%
PT rev (1m)-5.77%
PT rev (3m)-5.77%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-13.91%
EPS NY rev (1m)-1.73%
EPS NY rev (3m)-13.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.45 | ||
| Fwd PE | 3.03 | ||
| P/S | 1.64 | ||
| P/FCF | 2.56 | ||
| P/OCF | 2.56 | ||
| P/B | 0.64 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.93
EY40.81%
EPS(NY)2.37
Fwd EY33.01%
FCF(TTM)2.81
FCFY39.08%
OCF(TTM)2.81
OCFY39.08%
SpS4.39
BVpS11.2
TBVpS11.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 4.76% | ||
| ROCE | 2.43% | ||
| ROIC | 0.25% | ||
| ROICexc | 0.25% | ||
| ROICexgc | 0.25% | ||
| OM | 6.21% | ||
| PM (TTM) | 12.13% | ||
| GM | 8.71% | ||
| FCFM | 63.92% |
ROA(3y)-2.76%
ROA(5y)-5.95%
ROE(3y)-17.3%
ROE(5y)-37.42%
ROIC(3y)0.85%
ROIC(5y)1.09%
ROICexc(3y)0.87%
ROICexc(5y)1.12%
ROICexgc(3y)0.87%
ROICexgc(5y)1.12%
ROCE(3y)6.95%
ROCE(5y)8.64%
ROICexcg growth 3Y-44.52%
ROICexcg growth 5Y-23.28%
ROICexc growth 3Y-44.54%
ROICexc growth 5Y-23.2%
OM growth 3Y-57.18%
OM growth 5Y-28.55%
PM growth 3YN/A
PM growth 5Y-21.64%
GM growth 3Y-52.9%
GM growth 5Y-24.03%
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.7 | ||
| Debt/FCF | 26.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.08 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 526.88% | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | -1.79 |
F-Score6
WACCN/A
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)-45.84%
EPS 3Y-10.6%
EPS 5Y-29.23%
EPS Q2Q%-44.21%
EPS Next Y-19.11%
EPS Next 2Y-10.48%
EPS Next 3Y-10.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y14.44%
Revenue growth 5Y-18.12%
Sales Q2Q%22.6%
Revenue Next Year5.1%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-40.64%
EBIT growth 3Y-50.99%
EBIT growth 5Y-41.49%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-22.97%
FCF growth 3Y6.34%
FCF growth 5Y-11.81%
OCF growth 1Y-22.97%
OCF growth 3Y6.34%
OCF growth 5Y-11.81%