MFA FINANCIAL INC (MFA)
US55272X6076 - REIT
We assign a fundamental rating of 5 out of 10 to MFA. MFA was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. MFA has only an average score on both its financial health and profitability. MFA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MFA was profitable.
MFA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MFA reported negative net income in multiple years.
In the past 5 years MFA always reported a positive cash flow from operatings.
1.2 Ratios
MFA has a better Return On Assets (0.59%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 3.48%, MFA is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.50%, MFA is in line with its industry, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 3.48% | ||
| ROIC | 0.5% |
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
The Profit Margin of MFA (8.98%) is better than 60.94% of its industry peers.
MFA's Profit Margin has declined in the last couple of years.
The Operating Margin of MFA (9.30%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MFA has declined.
MFA has a Gross Margin of 31.59%. This is comparable to the rest of the industry: MFA outperforms 57.81% of its industry peers.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 8.98% | ||
| GM | 31.59% |
OM growth 3YN/A
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5Y-31.24%
GM growth 3YN/A
GM growth 5Y-10.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MFA is destroying value.
The number of shares outstanding for MFA remains at a similar level compared to 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.
With a Altman-Z score value of -0.06, MFA perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
The Debt to FCF ratio of MFA is 61.92, which is on the high side as it means it would take MFA, 61.92 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 61.92, MFA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 4.72 is on the high side and indicates that MFA has dependencies on debt financing.
With a Debt to Equity ratio value of 4.72, MFA is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.72 | ||
| Debt/FCF | 61.92 | ||
| Altman-Z | -0.06 |
ROIC/WACC0.11
WACC4.45%
2.3 Liquidity
A Current Ratio of 1.31 indicates that MFA should not have too much problems paying its short term obligations.
The Current ratio of MFA (1.31) is better than 87.50% of its industry peers.
A Quick Ratio of 1.31 indicates that MFA should not have too much problems paying its short term obligations.
MFA's Quick ratio of 1.31 is amongst the best of the industry. MFA outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
MFA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 300.00%, 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.
MFA shows a strong growth in Revenue. In the last year, the Revenue has grown by 52.30%.
MFA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.48% yearly.
EPS 1Y (TTM)300%
EPS 3YN/A
EPS 5Y-7%
EPS Q2Q%-20%
Revenue 1Y (TTM)52.3%
Revenue growth 3Y54.82%
Revenue growth 5Y1.48%
Sales Q2Q%20.19%
3.2 Future
MFA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.63% yearly.
MFA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.52% yearly.
EPS Next Y-16.01%
EPS Next 2Y-7%
EPS Next 3Y-2.63%
EPS Next 5YN/A
Revenue Next Year25.11%
Revenue Next 2Y21.22%
Revenue Next 3Y12.52%
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
With a Price/Earnings ratio of 7.86, the valuation of MFA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of MFA indicates a rather cheap valuation: MFA is cheaper than 82.81% of the companies listed in the same industry.
MFA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.65.
MFA is valuated cheaply with a Price/Forward Earnings ratio of 7.38.
82.81% of the companies in the same industry are more expensive than MFA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MFA to the average of the S&P500 Index (21.38), we can say MFA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.38 |
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 67.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MFA's earnings are expected to decrease with -2.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7%
EPS Next 3Y-2.63%
5. Dividend
5.1 Amount
MFA has a Yearly Dividend Yield of 11.35%, which is a nice return.
MFA's Dividend Yield is slightly below the industry average, which is at 12.33.
MFA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
5.2 History
The dividend of MFA decreases each year by -11.99%.
MFA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MFA pays out 269.07% 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.
DP269.07%
EPS Next 2Y-7%
EPS Next 3Y-2.63%
MFA FINANCIAL INC
NYSE:MFA (9/6/2024, 8:27:47 PM)
After market: 12.2199 -0.04 (-0.33%)12.26
-0.07 (-0.57%)
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 Cap1.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 7.86 | ||
| Fwd PE | 7.38 | ||
| 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 | 0.59% | ||
| ROE | 3.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.3% | ||
| PM (TTM) | 8.98% | ||
| GM | 31.59% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)300%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-16.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)52.3%
Revenue growth 3Y54.82%
Revenue growth 5Y
Sales 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