MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
NYSE:MFA - New York Stock Exchange, Inc. - US55272X6076 - REIT - Currency: USD
Overall MFA gets a fundamental rating of 5 out of 10. We evaluated MFA against 65 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 has a correct valuation and a medium 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.
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
Looking at the Return On Assets, with a value of 1.03%, MFA belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
MFA has a Return On Equity of 6.46%. This is amongst the best in the industry. MFA outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.12%, MFA is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 6.46% | ||
| ROIC | 1.12% |
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 11.72%. This is in the better half of the industry: MFA outperforms 72.31% of its industry peers.
MFA's Profit Margin has declined in the last couple of years.
MFA has a Operating Margin of 15.64%. This is in the better half of the industry: MFA outperforms 75.38% of its industry peers.
MFA's Operating Margin has declined in the last couple of years.
The Gross Margin of MFA (36.39%) is better than 78.46% of its industry peers.
In the last couple of years the Gross Margin of MFA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | 11.72% | ||
| GM | 36.39% |
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.
MFA has a worse debt/assets ratio than last year.
2.2 Solvency
MFA has an Altman-Z score of -0.03. This is a bad value and indicates that MFA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MFA (-0.03) is comparable to the rest of the industry.
MFA has a debt to FCF ratio of 70.92. This is a negative value and a sign of low solvency as MFA would need 70.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 70.92, MFA is in line with its industry, outperforming 55.38% of the companies in the same industry.
A Debt/Equity ratio of 5.10 is on the high side and indicates that MFA has dependencies on debt financing.
MFA has a Debt to Equity ratio (5.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.1 | ||
| Debt/FCF | 70.92 | ||
| Altman-Z | -0.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MFA has a Current Ratio of 1.14. This is a normal value and indicates that MFA is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.14, MFA belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
MFA has a Quick Ratio of 1.14. 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 Quick ratio (1.14) than 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for MFA have decreased by -9.15% in the last year.
MFA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.50% yearly.
Looking at the last year, MFA shows a very strong growth in Revenue. The Revenue has grown by 63.01%.
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)-9.15%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-17.14%
Revenue 1Y (TTM)63.01%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%20.34%
3.2 Future
Based on estimates for the next years, MFA will show a small growth in Earnings Per Share. The EPS will grow by 0.33% on average per year.
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-25.28%
EPS Next 2Y-4.6%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y7.43%
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
MFA is valuated cheaply with a Price/Earnings ratio of 6.31.
MFA's Price/Earnings ratio is rather cheap when compared to the industry. MFA is cheaper than 90.77% of the companies in the same industry.
MFA is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.66, the valuation of MFA can be described as very cheap.
Based on the Price/Forward Earnings ratio, MFA is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MFA to the average of the S&P500 Index (22.19), we can say MFA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 6.66 |
4.2 Price Multiples
MFA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MFA is cheaper than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.3 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.6%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
MFA has a Yearly Dividend Yield of 14.75%, which is a nice return.
MFA's Dividend Yield is a higher than the industry average which is at 12.22.
Compared to an average S&P500 Dividend Yield of 2.40, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.75% |
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
MFA pays out 149.01% of its income as dividend. This is not a sustainable payout ratio.
DP149.01%
EPS Next 2Y-4.6%
EPS Next 3Y0.33%
9.4
-0.12 (-1.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners63.01%
Inst Owner Change-6.01%
Ins Owners0.89%
Ins Owner Change1.09%
Market Cap964.91M
Analysts76
Price Target11.73 (24.79%)
Short Float %2.22%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.75% |
Yearly Dividend1.73
Dividend Growth(5Y)-12.34%
DP149.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.26%
Min EPS beat(2)-10.27%
Max EPS beat(2)-2.24%
EPS beat(4)1
Avg EPS beat(4)-1.83%
Min EPS beat(4)-10.96%
Max EPS beat(4)16.17%
EPS beat(8)4
Avg EPS beat(8)4.64%
EPS beat(12)6
Avg EPS beat(12)-716.73%
EPS beat(16)8
Avg EPS beat(16)-553.94%
Revenue beat(2)1
Avg Revenue beat(2)-5.5%
Min Revenue beat(2)-18.38%
Max Revenue beat(2)7.38%
Revenue beat(4)2
Avg Revenue beat(4)-6.99%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)7.38%
Revenue beat(8)3
Avg Revenue beat(8)-7.25%
Revenue beat(12)4
Avg Revenue beat(12)2.09%
Revenue beat(16)7
Avg Revenue beat(16)30.6%
PT rev (1m)4.55%
PT rev (3m)-2.47%
EPS NQ rev (1m)15.44%
EPS NQ rev (3m)-6.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.42%
Revenue NQ rev (1m)6.92%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 6.66 | ||
| P/S | 0.95 | ||
| P/FCF | 7.3 | ||
| P/OCF | 7.3 | ||
| P/B | 0.52 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.49
EY15.85%
EPS(NY)1.41
Fwd EY15.01%
FCF(TTM)1.29
FCFY13.69%
OCF(TTM)1.29
OCFY13.69%
SpS9.87
BVpS17.91
TBVpS17.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 6.46% | ||
| ROCE | 1.41% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.14% | ||
| ROICexgc | 1.18% | ||
| OM | 15.64% | ||
| PM (TTM) | 11.72% | ||
| GM | 36.39% | ||
| FCFM | 13.04% |
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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.1 | ||
| Debt/FCF | 70.92 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 111.3% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | -0.03 |
F-Score7
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)-9.15%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-17.14%
EPS Next Y-25.28%
EPS Next 2Y-4.6%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)63.01%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%20.34%
Revenue Next Year0.6%
Revenue Next 2Y7.43%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y2189.04%
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-39.69%
FCF growth 3Y22.71%
FCF growth 5Y-1.32%
OCF growth 1Y-39.9%
OCF growth 3Y18.49%
OCF growth 5Y-1.5%