MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
USA - NYSE:MFA - US55272X6076 - REIT
9.27 USD
+0.06 (+0.65%)
9.27 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MFA. MFA was compared to 68 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.
In the past 5 years MFA always reported a positive cash flow from operatings.
1.2 Ratios
MFA has a Return On Assets of 0.79%. This is in the better half of the industry: MFA outperforms 79.41% of its industry peers.
MFA has a better Return On Equity (5.08%) than 77.94% of its industry peers.
With a decent Return On Invested Capital value of 0.91%, MFA is doing good in the industry, outperforming 73.53% 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
MFA has a better Profit Margin (11.53%) than 72.06% of its industry peers.
MFA's Profit Margin has declined in the last couple of years.
MFA has a better Operating Margin (16.31%) than 73.53% of its industry peers.
In the last couple of years the Operating Margin of MFA has declined.
Looking at the Gross Margin, with a value of 36.64%, MFA is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
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.
The number of shares outstanding for MFA has been reduced compared to 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's Altman-Z score of -0.06 is in line compared to the rest of the industry. MFA outperforms 58.82% of its industry peers.
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.
MFA's Debt to FCF ratio of 76.65 is fine compared to the rest of the industry. MFA outperforms 72.06% 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.
MFA's Debt to Equity ratio of 5.22 is in line compared to the rest of the industry. MFA outperforms 50.00% of its industry peers.
| 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 Current ratio of 1.10. This is amongst the best in the industry. MFA outperforms 80.88% of its industry peers.
A Quick Ratio of 1.10 indicates that MFA should not have too much problems paying its short term obligations.
MFA has a better Quick ratio (1.10) than 80.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for MFA have decreased strongly by -32.12% 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 21.85%.
The Revenue has been decreasing by -0.04% on average over the past years.
EPS 1Y (TTM)-32.12%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.95%
Revenue 1Y (TTM)21.85%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%12.18%
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 0.65% on average per year.
The Revenue is expected to grow by 12.28% on average over the next years. This is quite good.
EPS Next Y-28.58%
EPS Next 2Y-3.81%
EPS Next 3Y0.65%
EPS Next 5YN/A
Revenue Next Year4.4%
Revenue Next 2Y9.5%
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
Based on the Price/Earnings ratio of 8.28, the valuation of MFA can be described as reasonable.
Based on the Price/Earnings ratio, MFA is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MFA to the average of the S&P500 Index (26.06), we can say MFA is valued rather cheaply.
MFA is valuated cheaply with a Price/Forward Earnings ratio of 6.46.
MFA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MFA is cheaper than 88.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. MFA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 6.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFA indicates a rather cheap valuation: MFA is cheaper than 85.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.67 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.81%
EPS Next 3Y0.65%
5. Dividend
5.1 Amount
MFA has a Yearly Dividend Yield of 15.64%, which is a nice return.
MFA's Dividend Yield is rather good when compared to the industry average which is at 13.15. MFA pays more dividend than 82.35% 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 | 15.64% |
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
195.15% of the earnings are spent on dividend by MFA. This is not a sustainable payout ratio.
DP195.15%
EPS Next 2Y-3.81%
EPS Next 3Y0.65%
9.27
+0.06 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners59.12%
Inst Owner Change0.11%
Ins Owners0.88%
Ins Owner Change0.31%
Market Cap951.75M
Revenue(TTM)806.26M
Net Income(TTM)92.65M
Analysts72
Price Target11.32 (22.11%)
Short Float %2.28%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.64% |
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%
PT rev (3m)0.91%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)0%
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 | 8.28 | ||
| Fwd PE | 6.46 | ||
| P/S | 1.18 | ||
| P/FCF | 7.67 | ||
| P/OCF | 7.67 | ||
| P/B | 0.52 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.12
EY12.08%
EPS(NY)1.43
Fwd EY15.47%
FCF(TTM)1.21
FCFY13.03%
OCF(TTM)1.21
OCFY13.03%
SpS7.82
BVpS17.75
TBVpS17.12
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.15
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
ROICexgc growth 3Y-28.3%
ROICexgc 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)-32.12%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.95%
EPS Next Y-28.58%
EPS Next 2Y-3.81%
EPS Next 3Y0.65%
EPS Next 5YN/A
Revenue 1Y (TTM)21.85%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%12.18%
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%
MFA FINANCIAL INC / MFA FAQ
Can you provide the ChartMill fundamental rating for MFA FINANCIAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to MFA.
Can you provide the valuation status for MFA FINANCIAL INC?
ChartMill assigns a valuation rating of 6 / 10 to MFA FINANCIAL INC (MFA). This can be considered as Fairly Valued.
Can you provide the profitability details for MFA FINANCIAL INC?
MFA FINANCIAL INC (MFA) has a profitability rating of 5 / 10.
How financially healthy is MFA FINANCIAL INC?
The financial health rating of MFA FINANCIAL INC (MFA) is 4 / 10.
How sustainable is the dividend of MFA FINANCIAL INC (MFA) stock?
The dividend rating of MFA FINANCIAL INC (MFA) is 5 / 10 and the dividend payout ratio is 195.15%.