MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
NYSE:MFA - New York Stock Exchange, Inc. - US55272X6076 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to MFA. MFA was compared to 67 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 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.
MFA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.79%, MFA is in the better half of the industry, outperforming 77.61% of the companies in the same industry.
With an excellent Return On Equity value of 5.06%, MFA belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
MFA has a better Return On Invested Capital (0.91%) than 76.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 5.06% | ||
| 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
MFA has a better Profit Margin (11.47%) than 74.63% of its industry peers.
MFA's Profit Margin has declined in the last couple of years.
The Operating Margin of MFA (16.25%) is better than 77.61% of its industry peers.
In the last couple of years the Operating Margin of MFA has declined.
MFA has a Gross Margin of 36.69%. This is amongst the best in the industry. MFA outperforms 80.60% of its industry peers.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.25% | ||
| PM (TTM) | 11.47% | ||
| GM | 36.69% |
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
Compared to 1 year ago, MFA has about the same amount of shares outstanding.
Compared to 5 years ago, MFA has less shares outstanding
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.
Looking at the Altman-Z score, with a value of -0.06, MFA is in line with its industry, outperforming 58.21% of the companies in the same industry.
MFA has a debt to FCF ratio of 76.59. This is a negative value and a sign of low solvency as MFA would need 76.59 years to pay back of all of its debts.
MFA has a Debt to FCF ratio of 76.59. This is in the better half of the industry: MFA outperforms 64.18% of its industry peers.
MFA has a Debt/Equity ratio of 5.22. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MFA (5.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 76.59 | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.10 indicates that MFA should not have too much problems paying its short term obligations.
MFA has a better Current ratio (1.10) than 82.09% of its industry peers.
A Quick Ratio of 1.10 indicates that MFA should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.10, MFA belongs to the best of the industry, outperforming 82.09% 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.
Looking at the last year, MFA shows a very negative growth in Revenue. The Revenue has decreased by -13.33% in the last year.
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)-23.21%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.45%
Revenue 1Y (TTM)-13.33%
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.
The Revenue is expected to grow by 12.28% on average over the next years. This is quite good.
EPS Next Y-17.35%
EPS Next 2Y-4.69%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y7.05%
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
A Price/Earnings ratio of 7.52 indicates a rather cheap valuation of MFA.
Based on the Price/Earnings ratio, MFA is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.87, MFA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.89, 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 83.58% 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 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFA is valued cheaply inside the industry as 80.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.69%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
MFA has a Yearly Dividend Yield of 14.81%, which is a nice return.
MFA's Dividend Yield is rather good when compared to the industry average which is at 10.61. MFA pays more dividend than 86.57% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.81% |
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 195.98% of its income as dividend. This is not a sustainable payout ratio.
DP195.98%
EPS Next 2Y-4.69%
EPS Next 3Y0.33%
9.7
-0.02 (-0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.32%
Inst Owner Change-7.97%
Ins Owners0.89%
Ins Owner Change0.38%
Market Cap995.70M
Analysts72.73
Price Target11.22 (15.67%)
Short Float %2.88%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.81% |
Yearly Dividend1.73
Dividend Growth(5Y)-12.34%
DP195.98%
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)-4.35%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 6.89 | ||
| P/S | 1.24 | ||
| P/FCF | 8.02 | ||
| P/OCF | 8.02 | ||
| P/B | 0.55 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.29
EY13.3%
EPS(NY)1.41
Fwd EY14.51%
FCF(TTM)1.21
FCFY12.47%
OCF(TTM)1.21
OCFY12.47%
SpS7.83
BVpS17.75
TBVpS17.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 5.06% | ||
| ROCE | 1.15% | ||
| ROIC | 0.91% | ||
| ROICexc | 0.91% | ||
| ROICexgc | 0.92% | ||
| OM | 16.25% | ||
| PM (TTM) | 11.47% | ||
| GM | 36.69% | ||
| 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 | 76.59 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 134.58% | ||
| 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-17.35%
EPS Next 2Y-4.69%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.33%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%14.56%
Revenue Next Year2.06%
Revenue Next 2Y7.05%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y93.37%
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-43.19%
FCF growth 3Y22.71%
FCF growth 5Y-1.32%
OCF growth 1Y-43.27%
OCF growth 3Y18.49%
OCF growth 5Y-1.5%