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 has a bad profitability rating. Also its financial health evaluation is rather negative. IVR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IVR had positive earnings in the past year.
In the past year IVR had a positive cash flow from operations.
IVR had negative earnings in 4 of the past 5 years.
Each year in the past 5 years IVR had a positive operating cash flow.
1.2 Ratios
IVR has a Return On Assets (0.61%) which is comparable to the rest of the industry.
IVR's Return On Equity of 4.76% is in line compared to the rest of the industry. IVR outperforms 52.31% of its industry peers.
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.
IVR had an Average Return On Invested Capital over the past 3 years of 0.85%. This is in line with the industry average of 1.68%.
| 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 63.08% of its industry peers.
In the last couple of years the Profit Margin of IVR has declined.
With a Operating Margin value of 6.21%, IVR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
IVR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 8.71%, IVR is doing worse than 87.69% of the companies in the same industry.
In the last couple of years the Gross Margin of IVR has declined.
| 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.
The debt/assets ratio for IVR is higher compared to a year ago.
2.2 Solvency
IVR has an Altman-Z score of -1.78. 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 -1.78 is on the low side compared to the rest of the industry. IVR is outperformed by 98.46% of its industry peers.
IVR has a debt to FCF ratio of 26.72. This is a negative value and a sign of low solvency as IVR would need 26.72 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 26.72, IVR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
IVR has a Debt/Equity ratio of 6.70. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IVR (6.70) is worse than 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.7 | ||
| Debt/FCF | 26.72 | ||
| Altman-Z | -1.78 |
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.
With a Current 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.
A Quick Ratio of 0.02 indicates that IVR may have some problems paying its short term obligations.
IVR's Quick ratio of 0.02 is on the low side compared to the rest of the industry. IVR is outperformed by 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
IVR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.19%.
The earnings per share for IVR have been decreasing by -29.23% on average. This is quite bad
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)-43.19%
EPS 3Y-10.6%
EPS 5Y-29.23%
EPS Q2Q%-25.58%
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y14.44%
Revenue growth 5Y-18.12%
Sales Q2Q%7.67%
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 -11.37% on average per year.
Based on estimates for the next years, IVR will show a small growth in Revenue. The Revenue will grow by 2.39% on average per year.
EPS Next Y-17.79%
EPS Next 2Y-16.21%
EPS Next 3Y-11.37%
EPS Next 5YN/A
Revenue Next Year3.42%
Revenue Next 2Y2.39%
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.
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 2.72, 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.
IVR is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
IVR is valuated cheaply with a Price/Forward Earnings ratio of 3.59.
IVR's Price/Forward Earnings ratio is rather cheap when compared to the industry. IVR is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, IVR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.72 | ||
| Fwd PE | 3.59 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, IVR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as IVR's earnings are expected to decrease with -11.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.21%
EPS Next 3Y-11.37%
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 14.38. IVR pays more dividend than 86.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 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
IVR pays out 303.40% of its income as dividend. 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-16.21%
EPS Next 3Y-11.37%
7.38
+0.03 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.66%
Inst Owner Change2.24%
Ins Owners0.28%
Ins Owner Change15.15%
Market Cap486.64M
Analysts52.31
Price Target8.33 (12.87%)
Short Float %11.55%
Short Ratio3.29
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%
EPS NQ rev (3m)-13.91%
EPS NY rev (1m)1.63%
EPS NY rev (3m)-12.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-1.6%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.72 | ||
| Fwd PE | 3.59 | ||
| P/S | 1.7 | ||
| P/FCF | 2.66 | ||
| P/OCF | 2.66 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.71
EY36.72%
EPS(NY)2.06
Fwd EY27.87%
FCF(TTM)2.78
FCFY37.64%
OCF(TTM)2.78
OCFY37.64%
SpS4.35
BVpS11.08
TBVpS11.08
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 | -1.78 |
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)-43.19%
EPS 3Y-10.6%
EPS 5Y-29.23%
EPS Q2Q%-25.58%
EPS Next Y-17.79%
EPS Next 2Y-16.21%
EPS Next 3Y-11.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y14.44%
Revenue growth 5Y-18.12%
Sales Q2Q%7.67%
Revenue Next Year3.42%
Revenue Next 2Y2.39%
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%