MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MFA - US55272X6076 - REIT
10 USD
+0.05 (+0.5%)
10 USD
0 (0%)
Overall MFA gets a fundamental rating of 4 out of 10. We evaluated MFA against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. MFA has a medium profitability rating, but doesn't score so well on its financial health evaluation. MFA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- MFA had positive earnings in the past year.
- In the past year MFA had a positive cash flow from operations.
- In multiple years MFA reported negative net income over the last 5 years.
- Each year in the past 5 years MFA had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 0.74%, MFA belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
- 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.
- Looking at the Return On Invested Capital, with a value of 0.88%, MFA is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
| 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
- MFA has a Profit Margin of 11.27%. This is in the better half of the industry: MFA outperforms 63.24% of its industry peers.
- In the last couple of years the Profit Margin of MFA has declined.
- Looking at the Operating Margin, with a value of 16.20%, MFA is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
- In the last couple of years the Operating Margin of MFA has declined.
- 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.
- In the last couple of years the Gross Margin of MFA has declined.
| 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
- MFA has about the same amout of shares outstanding than it did 1 year ago.
- 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's Altman-Z score of -0.06 is in line compared 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 has a Debt to Equity ratio of 5.40. This is comparable 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.
- Looking at the Current 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.
- MFA has a Quick 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.
- With a decent Quick ratio value of 0.95, MFA is doing good in 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.
- Measured over the past years, MFA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.50% on average per year.
- MFA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.03%.
- Measured over the past years, MFA shows a decrease in Revenue. The Revenue has been decreasing by -0.04% on average per year.
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.
- MFA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.28% yearly.
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 2Y6.56%
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.
- 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
- Based on the Price/Earnings ratio of 8.93, 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 75.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MFA is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.29 indicates a rather cheap valuation of MFA.
- 83.82% of the companies in the same industry are more expensive than MFA, based on the Price/Forward Earnings ratio.
- MFA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 7.29 |
4.2 Price Multiples
- MFA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFA is cheaper than 89.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| 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
- With a Yearly Dividend Yield of 9.26%, MFA is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.26, MFA is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
5.2 History
- The dividend of MFA decreases each year by -12.34%.
- MFA has been paying a dividend for at least 10 years, so it has a reliable track record.
- MFA has decreased its dividend recently.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- MFA pays out 205.55% of its income as dividend. 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%
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 8.93 and the Price/Book (PB) ratio is 0.56.
Can you provide the dividend sustainability for MFA stock?
The dividend rating of MFA FINANCIAL INC (MFA) is 5 / 10 and the dividend payout ratio is 205.55%.