MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MFA - US55272X6076 - REIT
9.69 USD
+0.12 (+1.25%)
9.69 USD
0 (0%)
MFA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of MFA while its profitability can be described as average. MFA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MFA had positive earnings in the past year.
MFA had a positive operating cash flow in the past year.
In multiple years MFA reported negative net income over the last 5 years.
MFA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFA has a Return On Assets of 0.74%. This is amongst the best in the industry. MFA outperforms 80.88% of its industry peers.
Looking at the Return On Equity, with a value of 4.93%, MFA is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
MFA has a better Return On Invested Capital (0.88%) than 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 4.93% | ||
| ROIC | 0.88% |
ROA(3y)-0.57%
ROA(5y)-1.74%
ROE(3y)-2.06%
ROE(5y)-4.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 11.27%, MFA is doing good in the industry, outperforming 63.24% of the companies in the same industry.
In the last couple of years the Profit Margin of MFA has declined.
With a decent Operating Margin value of 16.20%, MFA is doing good in the industry, outperforming 61.76% of the companies in the same industry.
MFA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 36.50%, MFA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.2% | ||
| PM (TTM) | 11.27% | ||
| GM | 36.5% |
OM growth 3Y-36.21%
OM growth 5Y-20.95%
PM growth 3Y-45.5%
PM growth 5Y-24.97%
GM growth 3Y-21.52%
GM growth 5Y-9.69%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MFA has about the same amount of shares outstanding.
MFA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MFA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.06, we must say that MFA is in the distress zone and has some risk of bankruptcy.
MFA has a Altman-Z score of -0.06. This is comparable to the rest of the industry: MFA outperforms 54.41% of its industry peers.
MFA has a debt to FCF ratio of 65.58. This is a negative value and a sign of low solvency as MFA would need 65.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 65.58, MFA is doing good in the industry, outperforming 76.47% of the companies in the same industry.
MFA has a Debt/Equity ratio of 5.40. This is a high value indicating a heavy dependency on external financing.
MFA's Debt to Equity ratio of 5.40 is in line compared to the rest of the industry. MFA outperforms 48.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | 65.58 | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MFA has a Current Ratio of 0.95. This is a bad value and indicates that MFA is not financially healthy enough and could expect problems in meeting its short term obligations.
MFA has a Current ratio of 0.95. This is in the better half of the industry: MFA outperforms 70.59% of its industry peers.
A Quick Ratio of 0.95 indicates that MFA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, MFA is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for MFA have decreased strongly by -32.12% in the last year.
The earnings per share for MFA have been decreasing by -13.50% on average. This is quite bad
MFA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.03%.
The Revenue has been decreasing by -0.04% on average over the past years.
EPS 1Y (TTM)-32.12%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.95%
Revenue 1Y (TTM)-24.03%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%12.18%
3.2 Future
Based on estimates for the next years, MFA will show a decrease in Earnings Per Share. The EPS will decrease by -0.32% on average per year.
The Revenue is expected to grow by 12.28% on average over the next years. This is quite good.
EPS Next Y-32.02%
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
EPS Next 5YN/A
Revenue Next Year16.21%
Revenue Next 2Y9.5%
Revenue Next 3Y12.28%
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 8.65, the valuation of MFA can be described as reasonable.
Based on the Price/Earnings ratio, MFA is valued a bit cheaper than the industry average as 77.94% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.00. MFA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.06 indicates a rather cheap valuation of MFA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFA indicates a rather cheap valuation: MFA is cheaper than 83.82% of the companies listed in the same industry.
MFA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFA is valued cheaply inside the industry as 89.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.6 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
5. Dividend
5.1 Amount
MFA has a Yearly Dividend Yield of 10.94%, which is a nice return.
MFA's Dividend Yield is comparable with the industry average which is at 11.16.
Compared to an average S&P500 Dividend Yield of 1.94, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.94% |
5.2 History
The dividend of MFA decreases each year by -12.34%.
MFA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MFA decreased recently.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
205.55% of the earnings are spent on dividend by MFA. This is not a sustainable payout ratio.
The Dividend Rate of MFA has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP205.55%
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
9.69
+0.12 (+1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners55.51%
Inst Owner Change0%
Ins Owners0.89%
Ins Owner Change-0.07%
Market Cap990.32M
Revenue(TTM)797.68M
Net Income(TTM)89.86M
Analysts72
Price Target10.52 (8.57%)
Short Float %2.49%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.94% |
Yearly Dividend1.73
Dividend Growth(5Y)-12.34%
DP205.55%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.83%
Min EPS beat(2)-27.99%
Max EPS beat(2)-21.66%
EPS beat(4)0
Avg EPS beat(4)-15.54%
Min EPS beat(4)-27.99%
Max EPS beat(4)-2.24%
EPS beat(8)2
Avg EPS beat(8)-5.13%
EPS beat(12)5
Avg EPS beat(12)-2.45%
EPS beat(16)6
Avg EPS beat(16)-562.76%
Revenue beat(2)2
Avg Revenue beat(2)7.79%
Min Revenue beat(2)3.57%
Max Revenue beat(2)12.01%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)12.01%
Revenue beat(8)4
Avg Revenue beat(8)-5.04%
Revenue beat(12)6
Avg Revenue beat(12)9.28%
Revenue beat(16)7
Avg Revenue beat(16)-5.44%
PT rev (1m)-0.6%
PT rev (3m)-7.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.81%
Revenue NQ rev (1m)-4.19%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)11.31%
Revenue NY rev (3m)11.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 7.06 | ||
| P/S | 1.24 | ||
| P/FCF | 6.6 | ||
| P/OCF | 6.6 | ||
| P/B | 0.54 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.12
EY11.56%
EPS(NY)1.37
Fwd EY14.16%
FCF(TTM)1.47
FCFY15.15%
OCF(TTM)1.47
OCFY15.15%
SpS7.81
BVpS17.82
TBVpS17.2
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 4.93% | ||
| ROCE | 1.11% | ||
| ROIC | 0.88% | ||
| ROICexc | 0.9% | ||
| ROICexgc | 0.93% | ||
| OM | 16.2% | ||
| PM (TTM) | 11.27% | ||
| GM | 36.5% | ||
| FCFM | 18.81% |
ROA(3y)-0.57%
ROA(5y)-1.74%
ROE(3y)-2.06%
ROE(5y)-4.53%
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
ROICexgc growth 3Y-28.3%
ROICexgc growth 5Y-17.73%
ROICexc growth 3Y-27.72%
ROICexc growth 5Y-17.35%
OM growth 3Y-36.21%
OM growth 5Y-20.95%
PM growth 3Y-45.5%
PM growth 5Y-24.97%
GM growth 3Y-21.52%
GM growth 5Y-9.69%
F-Score4
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | 65.58 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 167% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | -0.06 |
F-Score4
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)-32.12%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.95%
EPS Next Y-32.02%
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.03%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%12.18%
Revenue Next Year16.21%
Revenue Next 2Y9.5%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y-25.62%
EBIT growth 3Y-22.41%
EBIT growth 5Y-20.98%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.9%
FCF growth 3Y22.71%
FCF growth 5Y-1.32%
OCF growth 1Y22.6%
OCF growth 3Y18.49%
OCF growth 5Y-1.5%
MFA FINANCIAL INC / MFA FAQ
Can you provide the ChartMill fundamental rating for MFA FINANCIAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to MFA.
What is the valuation status of MFA FINANCIAL INC (MFA) stock?
ChartMill assigns a valuation rating of 6 / 10 to MFA FINANCIAL INC (MFA). This can be considered as Fairly Valued.
How profitable is MFA FINANCIAL INC (MFA) stock?
MFA FINANCIAL INC (MFA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of MFA FINANCIAL INC (MFA) stock?
The Price/Earnings (PE) ratio for MFA FINANCIAL INC (MFA) is 8.65 and the Price/Book (PB) ratio is 0.54.
Can you provide the dividend sustainability for MFA stock?
The dividend rating of MFA FINANCIAL INC (MFA) is 4 / 10 and the dividend payout ratio is 205.55%.