MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
USA - NYSE:MFA - US55272X6076 - REIT
9.14 USD
-0.09 (-0.98%)
9.2 USD
+0.06 (+0.66%)
We assign a fundamental rating of 5 out of 10 to MFA. MFA was compared to 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. MFA has an average financial health and profitability rating. MFA is valued quite cheap, but it does not seem to be growing.
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.
MFA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFA has a better Return On Assets (0.79%) than 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 5.08%, MFA belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
With a decent Return On Invested Capital value of 0.91%, MFA is doing good in the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 5.08% | ||
| ROIC | 0.91% |
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 11.53%, MFA is doing good in the industry, outperforming 75.76% of the companies in the same industry.
MFA's Profit Margin has declined in the last couple of years.
MFA has a Operating Margin of 16.31%. This is in the better half of the industry: MFA outperforms 77.27% of its industry peers.
MFA's Operating Margin has declined in the last couple of years.
MFA has a Gross Margin of 36.64%. This is amongst the best in the industry. MFA outperforms 80.30% of its industry peers.
In the last couple of years the Gross Margin of MFA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.31% | ||
| PM (TTM) | 11.53% | ||
| GM | 36.64% |
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
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.
MFA has a worse debt/assets ratio than last year.
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 (-0.06) which is comparable to the rest of the industry.
The Debt to FCF ratio of MFA is 76.65, which is on the high side as it means it would take MFA, 76.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MFA (76.65) is better than 65.15% of its industry peers.
A Debt/Equity ratio of 5.22 is on the high side and indicates that MFA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.22, MFA is in line with its industry, outperforming 53.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 76.65 | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MFA has a Current Ratio of 1.10. 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 (1.10) than 81.82% of its industry peers.
A Quick Ratio of 1.10 indicates that MFA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, MFA belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
MFA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.21%.
MFA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.50% yearly.
The Revenue for MFA has decreased by -13.38% in the past year. This is quite bad
MFA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.04% yearly.
EPS 1Y (TTM)-23.21%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.45%
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%14.56%
3.2 Future
MFA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.33% yearly.
Based on estimates for the next years, MFA will show a quite strong growth in Revenue. The Revenue will grow by 12.28% on average per year.
EPS Next Y-28.58%
EPS Next 2Y-3.94%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year4.4%
Revenue Next 2Y9.5%
Revenue Next 3Y12.28%
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.
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 7.09, the valuation of MFA can be described as very cheap.
Based on the Price/Earnings ratio, MFA is valued cheaper than 86.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of MFA to the average of the S&P500 Index (27.55), we can say MFA is valued rather cheaply.
MFA is valuated cheaply with a Price/Forward Earnings ratio of 6.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFA indicates a rather cheap valuation: MFA is cheaper than 89.39% 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 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.39 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFA is valued cheaper than 80.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.57 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of MFA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.94%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.74%, MFA is a good candidate for dividend investing.
MFA's Dividend Yield is rather good when compared to the industry average which is at 12.06. MFA pays more dividend than 89.39% of the companies in the same industry.
MFA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.74% |
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.
The dividend of MFA decreased recently.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MFA pays out 195.15% of its income as dividend. This is not a sustainable payout ratio.
DP195.15%
EPS Next 2Y-3.94%
EPS Next 3Y0.33%
9.14
-0.09 (-0.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners59.12%
Inst Owner Change-0.12%
Ins Owners0.88%
Ins Owner Change0.31%
Market Cap938.40M
Analysts72.73
Price Target11.32 (23.85%)
Short Float %2.12%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.74% |
Yearly Dividend1.73
Dividend Growth(5Y)-12.34%
DP195.15%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.97%
Min EPS beat(2)-21.66%
Max EPS beat(2)-10.27%
EPS beat(4)0
Avg EPS beat(4)-11.28%
Min EPS beat(4)-21.66%
Max EPS beat(4)-2.24%
EPS beat(8)3
Avg EPS beat(8)0.01%
EPS beat(12)6
Avg EPS beat(12)1.95%
EPS beat(16)7
Avg EPS beat(16)-558.04%
Revenue beat(2)2
Avg Revenue beat(2)9.7%
Min Revenue beat(2)7.38%
Max Revenue beat(2)12.01%
Revenue beat(4)2
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)12.01%
Revenue beat(8)4
Avg Revenue beat(8)-4.4%
Revenue beat(12)5
Avg Revenue beat(12)7.36%
Revenue beat(16)7
Avg Revenue beat(16)12.05%
PT rev (1m)0.91%
PT rev (3m)-3.48%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-13.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.39 | ||
| P/S | 1.17 | ||
| P/FCF | 7.57 | ||
| P/OCF | 7.57 | ||
| P/B | 0.52 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.29
EY14.11%
EPS(NY)1.43
Fwd EY15.65%
FCF(TTM)1.21
FCFY13.22%
OCF(TTM)1.21
OCFY13.22%
SpS7.82
BVpS17.75
TBVpS17.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 5.08% | ||
| ROCE | 1.16% | ||
| ROIC | 0.91% | ||
| ROICexc | 0.91% | ||
| ROICexgc | 0.94% | ||
| OM | 16.31% | ||
| PM (TTM) | 11.53% | ||
| GM | 36.64% | ||
| FCFM | 15.44% |
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
ROICexcg growth 3Y-28.3%
ROICexcg 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-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 76.65 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 133.85% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | -0.06 |
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)-23.21%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.45%
EPS Next Y-28.58%
EPS Next 2Y-3.94%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%14.56%
Revenue Next Year4.4%
Revenue Next 2Y9.5%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y93.99%
EBIT growth 3Y-22.41%
EBIT growth 5Y-20.98%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-43.24%
FCF growth 3Y22.71%
FCF growth 5Y-1.32%
OCF growth 1Y-43.32%
OCF growth 3Y18.49%
OCF growth 5Y-1.5%