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ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis

NYSE:NLY - New York Stock Exchange, Inc. - US0357108390 - REIT - Currency: USD

19.32  -0.1 (-0.51%)

Premarket: 19.23 -0.09 (-0.47%)

Fundamental Rating

4

Taking everything into account, NLY scores 4 out of 10 in our fundamental rating. NLY was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While NLY is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NLY.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

NLY had positive earnings in the past year.
In the past year NLY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NLY reported negative net income in multiple years.
NLY had a positive operating cash flow in each of the past 5 years.
NLY Yearly Net Income VS EBIT VS OCF VS FCFNLY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B

1.2 Ratios

NLY has a Return On Assets (0.82%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.72%, NLY is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
NLY has a Return On Invested Capital of 0.79%. This is in the better half of the industry: NLY outperforms 64.62% of its industry peers.
Industry RankSector Rank
ROA 0.82%
ROE 6.72%
ROIC 0.79%
ROA(3y)0.29%
ROA(5y)0.54%
ROE(3y)1.73%
ROE(5y)3.03%
ROIC(3y)N/A
ROIC(5y)N/A
NLY Yearly ROA, ROE, ROICNLY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

NLY's Profit Margin of 14.51% is fine compared to the rest of the industry. NLY outperforms 66.15% of its industry peers.
In the last couple of years the Profit Margin of NLY has declined.
Looking at the Operating Margin, with a value of 17.59%, NLY is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
In the last couple of years the Operating Margin of NLY has declined.
NLY's Gross Margin of 20.52% is on the low side compared to the rest of the industry. NLY is outperformed by 70.77% of its industry peers.
In the last couple of years the Gross Margin of NLY has declined.
Industry RankSector Rank
OM 17.59%
PM (TTM) 14.51%
GM 20.52%
OM growth 3Y-42.02%
OM growth 5YN/A
PM growth 3Y-42.61%
PM growth 5YN/A
GM growth 3Y-39.27%
GM growth 5YN/A
NLY Yearly Profit, Operating, Gross MarginsNLY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200

1

2. Health

2.1 Basic Checks

NLY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NLY has more shares outstanding
NLY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NLY is higher compared to a year ago.
NLY Yearly Shares OutstandingNLY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
NLY Yearly Total Debt VS Total AssetsNLY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

Based on the Altman-Z score of -0.76, we must say that NLY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.76, NLY is doing worse than 76.92% of the companies in the same industry.
NLY has a debt to FCF ratio of 36.61. This is a negative value and a sign of low solvency as NLY would need 36.61 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 36.61, NLY is doing good in the industry, outperforming 66.15% of the companies in the same industry.
A Debt/Equity ratio of 7.11 is on the high side and indicates that NLY has dependencies on debt financing.
The Debt to Equity ratio of NLY (7.11) is worse than 72.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.11
Debt/FCF 36.61
Altman-Z -0.76
ROIC/WACC0.15
WACC5.11%
NLY Yearly LT Debt VS Equity VS FCFNLY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 0.07 indicates that NLY may have some problems paying its short term obligations.
NLY has a Current ratio of 0.07. This is in the lower half of the industry: NLY underperforms 70.77% of its industry peers.
NLY has a Quick Ratio of 0.07. This is a bad value and indicates that NLY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.07, NLY is doing worse than 70.77% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.07
Quick Ratio 0.07
NLY Yearly Current Assets VS Current LiabilitesNLY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

5

3. Growth

3.1 Past

NLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.96%.
The Earnings Per Share has been decreasing by -7.74% on average over the past years.
NLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 138.96%.
NLY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.38% yearly.
EPS 1Y (TTM)2.96%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%12.5%
Revenue 1Y (TTM)138.96%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%-79.9%

3.2 Future

The Earnings Per Share is expected to grow by 2.81% on average over the next years.
Based on estimates for the next years, NLY will show a small growth in Revenue. The Revenue will grow by 6.20% on average per year.
EPS Next Y6.02%
EPS Next 2Y3.92%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue Next Year12.09%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
NLY Yearly Revenue VS EstimatesNLY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1B 2B 3B 4B 5B
NLY Yearly EPS VS EstimatesNLY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.95, the valuation of NLY can be described as very cheap.
Based on the Price/Earnings ratio, NLY is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NLY to the average of the S&P500 Index (28.18), we can say NLY is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.63, the valuation of NLY can be described as very cheap.
87.69% of the companies in the same industry are more expensive than NLY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NLY to the average of the S&P500 Index (20.81), we can say NLY is valued rather cheaply.
Industry RankSector Rank
PE 6.95
Fwd PE 6.63
NLY Price Earnings VS Forward Price EarningsNLY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

92.31% of the companies in the same industry are more expensive than NLY, based on the Enterprise Value to EBITDA ratio.
NLY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NLY is cheaper than 90.77% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.72
EV/EBITDA 30.11
NLY Per share dataNLY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

NLY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y3.92%
EPS Next 3Y2.81%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 14.49%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is a higher than the industry average which is at 14.03.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 14.49%

5.2 History

The dividend of NLY decreases each year by -10.87%.
NLY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years0
NLY Yearly Dividends per shareNLY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

5.3 Sustainability

NLY pays out 176.28% of its income as dividend. This is not a sustainable payout ratio.
DP176.28%
EPS Next 2Y3.92%
EPS Next 3Y2.81%
NLY Yearly Income VS Free CF VS DividendNLY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B
NLY Dividend Payout.NLY Dividend Payout, showing the Payout Ratio.NLY Dividend Payout.PayoutRetained Earnings

ANNALY CAPITAL MANAGEMENT IN

NYSE:NLY (5/2/2025, 8:13:10 PM)

Premarket: 19.23 -0.09 (-0.47%)

19.32

-0.1 (-0.51%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners60.28%
Inst Owner Change0.18%
Ins Owners0.13%
Ins Owner Change7.49%
Market Cap11.54B
Analysts77.78
Price Target21.13 (9.37%)
Short Float %2.4%
Short Ratio1.55
Dividend
Industry RankSector Rank
Dividend Yield 14.49%
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP176.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31 2025-03-31 (0.7)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.27%
Min EPS beat(2)-2.22%
Max EPS beat(2)6.77%
EPS beat(4)2
Avg EPS beat(4)1.61%
Min EPS beat(4)-2.22%
Max EPS beat(4)6.77%
EPS beat(8)4
Avg EPS beat(8)0.77%
EPS beat(12)7
Avg EPS beat(12)4.16%
EPS beat(16)11
Avg EPS beat(16)4.72%
Revenue beat(2)2
Avg Revenue beat(2)5.9%
Min Revenue beat(2)5.18%
Max Revenue beat(2)6.62%
Revenue beat(4)4
Avg Revenue beat(4)6.67%
Min Revenue beat(4)5.18%
Max Revenue beat(4)8.41%
Revenue beat(8)6
Avg Revenue beat(8)3.71%
Revenue beat(12)8
Avg Revenue beat(12)28.25%
Revenue beat(16)11
Avg Revenue beat(16)31.6%
PT rev (1m)-2.29%
PT rev (3m)-2.06%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)2.88%
EPS NY rev (1m)0.72%
EPS NY rev (3m)3.41%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)2.14%
Valuation
Industry RankSector Rank
PE 6.95
Fwd PE 6.63
P/S 1.98
P/FCF 4.72
P/OCF 3.49
P/B 0.92
P/tB 0.92
EV/EBITDA 30.11
EPS(TTM)2.78
EY14.39%
EPS(NY)2.92
Fwd EY15.09%
FCF(TTM)4.1
FCFY21.2%
OCF(TTM)5.54
OCFY28.68%
SpS9.77
BVpS21.1
TBVpS21.09
PEG (NY)1.15
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.82%
ROE 6.72%
ROCE 2.96%
ROIC 0.79%
ROICexc 0.8%
ROICexgc 0.81%
OM 17.59%
PM (TTM) 14.51%
GM 20.52%
FCFM 41.91%
ROA(3y)0.29%
ROA(5y)0.54%
ROE(3y)1.73%
ROE(5y)3.03%
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-34.31%
ROICexcg growth 5YN/A
ROICexc growth 3Y-34.32%
ROICexc growth 5YN/A
OM growth 3Y-42.02%
OM growth 5YN/A
PM growth 3Y-42.61%
PM growth 5YN/A
GM growth 3Y-39.27%
GM growth 5YN/A
F-Score6
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 7.11
Debt/FCF 36.61
Debt/EBITDA 84.74
Cap/Depr 2843.32%
Cap/Sales 14.78%
Interest Coverage 0.27
Cash Conversion 313.1%
Profit Quality 288.85%
Current Ratio 0.07
Quick Ratio 0.07
Altman-Z -0.76
F-Score6
WACC5.11%
ROIC/WACC0.15
Cap/Depr(3y)3082.57%
Cap/Depr(5y)2232.96%
Cap/Sales(3y)20.64%
Cap/Sales(5y)15.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.96%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%12.5%
EPS Next Y6.02%
EPS Next 2Y3.92%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue 1Y (TTM)138.96%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%-79.9%
Revenue Next Year12.09%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y164.23%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.22%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y39.86%
OCF growth 3Y2.47%
OCF growth 5YN/A