INVESCO MORTGAGE CAPITAL (IVR) Stock Fundamental Analysis
NYSE:IVR - New York Stock Exchange, Inc. - US46131B7047 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to IVR. IVR was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While IVR is still in line with the averages on profitability rating, there are concerns on its financial health. IVR is valued correctly, 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.
In the past 5 years IVR reported 4 times negative net income.
In the past 5 years IVR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 0.44%, IVR is doing good in the industry, outperforming 67.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.60%, IVR is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
IVR has a Return On Invested Capital of 0.38%. This is comparable to the rest of the industry: IVR outperforms 52.24% 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 1.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | 3.6% | ||
| ROIC | 0.38% |
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 has a better Profit Margin (9.36%) than 67.16% of its industry peers.
In the last couple of years the Profit Margin of IVR has declined.
IVR has a Operating Margin of 10.15%. This is comparable to the rest of the industry: IVR outperforms 55.22% of its industry peers.
IVR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.56%, IVR is doing worse than 70.15% of the companies in the same industry.
IVR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 9.36% | ||
| GM | 12.56% |
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
IVR has more shares outstanding than it did 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 -1.73. This is a bad value and indicates that IVR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.73, IVR is doing worse than 97.01% of the companies in the same industry.
The Debt to FCF ratio of IVR is 36.93, which is on the high side as it means it would take IVR, 36.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IVR (36.93) is better than 74.63% of its industry peers.
A Debt/Equity ratio of 7.05 is on the high side and indicates that IVR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.05, IVR is doing worse than 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.05 | ||
| Debt/FCF | 36.93 | ||
| Altman-Z | -1.73 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
IVR has a Current Ratio of 0.01. This is a bad value and indicates that IVR is not financially healthy enough and could expect problems in meeting its short term obligations.
IVR has a worse Current ratio (0.01) than 89.55% of its industry peers.
IVR has a Quick Ratio of 0.01. This is a bad value and indicates that IVR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.01, IVR is not doing good in the industry: 89.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.01 | ||
| Quick Ratio | 0.01 |
3. Growth
3.1 Past
The earnings per share for IVR have decreased strongly by -41.87% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -12.67%.
Measured over the past years, IVR shows a very negative growth in Revenue. The Revenue has been decreasing by -18.12% on average per year.
EPS 1Y (TTM)-41.87%
EPS 3Y-10.6%
EPS 5Y-29.23%
EPS Q2Q%-32.56%
Revenue 1Y (TTM)-12.67%
Revenue growth 3Y14.44%
Revenue growth 5Y-18.12%
Sales Q2Q%3.82%
3.2 Future
The Earnings Per Share is expected to decrease by -11.66% on average over the next years. This is quite bad
Based on estimates for the next years, IVR will show a small growth in Revenue. The Revenue will grow by 0.96% on average per year.
EPS Next Y-18.71%
EPS Next 2Y-14.07%
EPS Next 3Y-11.66%
EPS Next 5YN/A
Revenue Next Year2.6%
Revenue Next 2Y0.96%
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
Based on the Price/Earnings ratio of 3.13, the valuation of IVR can be described as very cheap.
Based on the Price/Earnings ratio, IVR is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, IVR is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.52, the valuation of IVR can be described as very cheap.
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.
IVR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.13 | ||
| Fwd PE | 3.52 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, IVR is valued cheaply inside the industry as 98.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.48 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as IVR's earnings are expected to decrease with -11.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.07%
EPS Next 3Y-11.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 17.89%, IVR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.66, IVR pays a better dividend. On top of this IVR pays more dividend than 94.03% of the companies listed in the same industry.
IVR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.89% |
5.2 History
The dividend of IVR decreases each year by -36.18%.
IVR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-36.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
397.25% 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.
DP397.25%
EPS Next 2Y-14.07%
EPS Next 3Y-11.66%
7.61
+0.01 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners50.09%
Inst Owner Change2.4%
Ins Owners0.38%
Ins Owner Change16.19%
Market Cap504.62M
Analysts52.31
Price Target7.99 (4.99%)
Short Float %10.78%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.89% |
Yearly Dividend1.91
Dividend Growth(5Y)-36.18%
DP397.25%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.96%
Min EPS beat(2)-26.44%
Max EPS beat(2)10.52%
EPS beat(4)1
Avg EPS beat(4)-10.99%
Min EPS beat(4)-26.44%
Max EPS beat(4)10.52%
EPS beat(8)3
Avg EPS beat(8)-5.36%
EPS beat(12)7
Avg EPS beat(12)16.83%
EPS beat(16)10
Avg EPS beat(16)15.03%
Revenue beat(2)0
Avg Revenue beat(2)-4.18%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-3.32%
Revenue beat(4)2
Avg Revenue beat(4)21.79%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)77.92%
Revenue beat(8)3
Avg Revenue beat(8)12.02%
Revenue beat(12)6
Avg Revenue beat(12)11.97%
Revenue beat(16)10
Avg Revenue beat(16)10.45%
PT rev (1m)3.3%
PT rev (3m)-4.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.13 | ||
| Fwd PE | 3.52 | ||
| P/S | 1.73 | ||
| P/FCF | 3.48 | ||
| P/OCF | 3.48 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.43
EY31.93%
EPS(NY)2.16
Fwd EY28.43%
FCF(TTM)2.19
FCFY28.74%
OCF(TTM)2.19
OCFY28.74%
SpS4.4
BVpS11.45
TBVpS11.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | 3.6% | ||
| ROCE | 3.89% | ||
| ROIC | 0.38% | ||
| ROICexc | 0.39% | ||
| ROICexgc | 0.39% | ||
| OM | 10.15% | ||
| PM (TTM) | 9.36% | ||
| GM | 12.56% | ||
| FCFM | 49.69% |
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 | 7.05 | ||
| Debt/FCF | 36.93 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 530.73% | ||
| Current Ratio | 0.01 | ||
| Quick Ratio | 0.01 | ||
| Altman-Z | -1.73 |
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)-41.87%
EPS 3Y-10.6%
EPS 5Y-29.23%
EPS Q2Q%-32.56%
EPS Next Y-18.71%
EPS Next 2Y-14.07%
EPS Next 3Y-11.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.67%
Revenue growth 3Y14.44%
Revenue growth 5Y-18.12%
Sales Q2Q%3.82%
Revenue Next Year2.6%
Revenue Next 2Y0.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y65.98%
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-35.03%
FCF growth 3Y6.34%
FCF growth 5Y-11.81%
OCF growth 1Y-35.03%
OCF growth 3Y6.34%
OCF growth 5Y-11.81%