MFA FINANCIAL INC (MFA)
US55272X6076 - REIT
Taking everything into account, MFA scores 4 out of 10 in our fundamental rating. MFA was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. MFA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MFA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MFA was profitable.
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
MFA has a Return On Assets (0.44%) which is comparable to the rest of the industry.
MFA's Return On Equity of 2.49% is in line compared to the rest of the industry. MFA outperforms 51.56% of its industry peers.
MFA has a worse Return On Invested Capital (0.25%) than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | 2.49% | ||
| ROIC | 0.25% |
ROA(3y)0.25%
ROA(5y)-1.36%
ROE(3y)0.25%
ROE(5y)-3.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.60%, MFA is in line with its industry, outperforming 51.56% of the companies in the same industry.
MFA's Profit Margin has declined in the last couple of years.
MFA has a worse Operating Margin (5.35%) than 67.19% of its industry peers.
MFA's Operating Margin has declined in the last couple of years.
MFA has a Gross Margin (30.98%) which is in line with its industry peers.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.35% | ||
| PM (TTM) | 7.6% | ||
| GM | 30.98% |
OM growth 3YN/A
OM growth 5Y-25.57%
PM growth 3YN/A
PM growth 5Y-31.26%
GM growth 3YN/A
GM growth 5Y-10.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MFA is destroying value.
MFA has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MFA has less shares outstanding
MFA has a worse debt/assets ratio than last year.
2.2 Solvency
MFA has an Altman-Z score of -0.09. This is a bad value and indicates that MFA is not financially healthy and even has some risk of bankruptcy.
MFA has a Altman-Z score (-0.09) which is comparable to the rest of the industry.
The Debt to FCF ratio of MFA is 78.51, which is on the high side as it means it would take MFA, 78.51 years of fcf income to pay off all of its debts.
MFA has a Debt to FCF ratio (78.51) which is comparable to the rest of the industry.
A Debt/Equity ratio of 4.49 is on the high side and indicates that MFA has dependencies on debt financing.
MFA has a Debt to Equity ratio of 4.49. This is in the lower half of the industry: MFA underperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 78.51 | ||
| Altman-Z | -0.09 |
ROIC/WACC0.05
WACC4.74%
2.3 Liquidity
MFA has a Current Ratio of 1.24. This is a normal value and indicates that MFA is financially healthy and should not expect problems in meeting its short term obligations.
MFA has a better Current ratio (1.24) than 82.81% of its industry peers.
A Quick Ratio of 1.24 indicates that MFA should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.24, MFA belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
MFA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 175.00%, which is quite impressive.
MFA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.00% yearly.
The Revenue has grown by 240.13% in the past year. This is a very strong growth!
MFA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.51% yearly.
EPS 1Y (TTM)175%
EPS 3YN/A
EPS 5Y-7%
EPS growth Q2Q2550%
Revenue 1Y (TTM)240.13%
Revenue growth 3Y54.92%
Revenue growth 5Y1.51%
Revenue growth Q2Q63.68%
3.2 Future
The Earnings Per Share is expected to decrease by -0.19% on average over the next years.
Based on estimates for the next years, MFA will show a very strong growth in Revenue. The Revenue will grow by 30.29% on average per year.
EPS Next Y-19.6%
EPS Next 2Y-6.85%
EPS Next 3Y-0.19%
EPS Next 5YN/A
Revenue Next Year18.92%
Revenue Next 2Y15.9%
Revenue Next 3Y30.29%
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
MFA is valuated cheaply with a Price/Earnings ratio of 5.49.
MFA's Price/Earnings ratio is rather cheap when compared to the industry. MFA is cheaper than 92.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. MFA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.83, the valuation of MFA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFA indicates a rather cheap valuation: MFA is cheaper than 82.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MFA to the average of the S&P500 Index (21.67), we can say MFA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.49 | ||
| Fwd PE | 6.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFA indicates a somewhat cheap valuation: MFA is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.85%
EPS Next 3Y-0.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.62%, MFA is a good candidate for dividend investing.
MFA's Dividend Yield is comparable with the industry average which is at 13.34.
Compared to an average S&P500 Dividend Yield of 2.45, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.62% |
5.2 History
The dividend of MFA decreases each year by -11.99%.
MFA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-11.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MFA pays out 372.43% 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.
DP372.43%
EPS Next 2Y-6.85%
EPS Next 3Y-0.19%
MFA FINANCIAL INC
NYSE:MFA (4/25/2024, 3:20:03 PM)
After market: 10.54 0 (0%)10.54
-0.15 (-1.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.49 | ||
| Fwd PE | 6.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | 2.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.35% | ||
| PM (TTM) | 7.6% | ||
| GM | 30.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)175%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)240.13%
Revenue growth 3Y54.92%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y