ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLY - US0357108390 - REIT
22.8 USD
+0.13 (+0.57%)
22.8125 USD
+0.01 (+0.05%)
Overall NLY gets a fundamental rating of 5 out of 10. We evaluated NLY against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NLY has a medium profitability rating, but doesn't score so well on its financial health evaluation. NLY scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year NLY was profitable.
NLY had a positive operating cash flow in the past year.
In multiple years NLY reported negative net income over the last 5 years.
In the past 5 years NLY always reported a positive cash flow from operatings.
1.2 Ratios
NLY has a Return On Assets of 1.07%. This is amongst the best in the industry. NLY outperforms 85.29% of its industry peers.
NLY has a better Return On Equity (9.00%) than 94.12% of its industry peers.
NLY has a Return On Invested Capital of 0.98%. This is in the better half of the industry: NLY outperforms 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9% | ||
| ROIC | 0.98% |
ROA(3y)0.29%
ROA(5y)0.54%
ROE(3y)1.73%
ROE(5y)3.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 20.91%, NLY belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of NLY has declined.
NLY has a better Operating Margin (23.66%) than 85.29% of its industry peers.
NLY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.66%, NLY is in line with its industry, outperforming 48.53% of the companies in the same industry.
In the last couple of years the Gross Margin of NLY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.66% | ||
| PM (TTM) | 20.91% | ||
| GM | 26.66% |
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
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.
NLY has more shares outstanding than it did 1 year ago.
NLY has more shares outstanding than it did 5 years ago.
NLY has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.72, we must say that NLY is in the distress zone and has some risk of bankruptcy.
NLY's Altman-Z score of -0.72 is on the low side compared to the rest of the industry. NLY is outperformed by 75.00% of its industry peers.
NLY has a debt to FCF ratio of 53.91. This is a negative value and a sign of low solvency as NLY would need 53.91 years to pay back of all of its debts.
NLY has a better Debt to FCF ratio (53.91) than 77.94% of its industry peers.
NLY has a Debt/Equity ratio of 7.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.18, NLY is in line with its industry, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.72 |
ROIC/WACC0.19
WACC5.11%
2.3 Liquidity
NLY has a Current Ratio of 0.04. This is a bad value and indicates that NLY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NLY (0.04) is worse than 83.82% of its industry peers.
NLY has a Quick Ratio of 0.04. This is a bad value and indicates that NLY is not financially healthy enough and could expect problems in meeting its short term obligations.
NLY has a Quick ratio of 0.04. This is amonst the worse of the industry: NLY underperforms 83.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
NLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.02%, which is quite good.
NLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.74% yearly.
NLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.20%.
NLY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.38% yearly.
EPS 1Y (TTM)9.02%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%10.61%
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%75.53%
3.2 Future
The Earnings Per Share is expected to grow by 3.22% on average over the next years.
NLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.97% yearly.
EPS Next Y8.61%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue Next Year18.05%
Revenue Next 2Y11.7%
Revenue Next 3Y9.97%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.86, the valuation of NLY can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, NLY is valued rather cheaply.
The Price/Forward Earnings ratio is 7.70, which indicates a rather cheap valuation of NLY.
Based on the Price/Forward Earnings ratio, NLY is valued a bit cheaper than 73.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. NLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
NLY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NLY is cheaper than 94.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 86.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.37 | ||
| EV/EBITDA | 27.2 |
4.3 Compensation for Growth
NLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y4.75%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.95%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is comparable with the industry average which is at 12.91.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.95% |
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.
NLY has decreased its dividend recently.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
131.25% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
22.8
+0.13 (+0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.55%
Inst Owner Change14.26%
Ins Owners0.1%
Ins Owner Change-3.34%
Market Cap14.64B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target22.54 (-1.14%)
Short Float %1.74%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.95% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP131.25%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.2%
Max EPS beat(2)0.77%
EPS beat(4)4
Avg EPS beat(4)2.47%
Min EPS beat(4)0.2%
Max EPS beat(4)6.77%
EPS beat(8)6
Avg EPS beat(8)1.72%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)3.53%
Revenue beat(2)2
Avg Revenue beat(2)31.15%
Min Revenue beat(2)7.74%
Max Revenue beat(2)54.57%
Revenue beat(4)4
Avg Revenue beat(4)16.89%
Min Revenue beat(4)0.08%
Max Revenue beat(4)54.57%
Revenue beat(8)7
Avg Revenue beat(8)10.73%
Revenue beat(12)9
Avg Revenue beat(12)-2.42%
Revenue beat(16)12
Avg Revenue beat(16)26.64%
PT rev (1m)5.1%
PT rev (3m)5.62%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)5.92%
Revenue NQ rev (3m)7.45%
Revenue NY rev (1m)1.72%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.7 | ||
| P/S | 2.28 | ||
| P/FCF | 7.37 | ||
| P/OCF | 5.12 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 27.2 |
EPS(TTM)2.9
EY12.72%
EPS(NY)2.96
Fwd EY12.99%
FCF(TTM)3.09
FCFY13.56%
OCF(TTM)4.45
OCFY19.52%
SpS9.99
BVpS23.22
TBVpS23.21
PEG (NY)0.91
PEG (5Y)N/A
Graham Number38.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9% | ||
| ROCE | 3.36% | ||
| ROIC | 0.98% | ||
| ROICexc | 1% | ||
| ROICexgc | 1% | ||
| OM | 23.66% | ||
| PM (TTM) | 20.91% | ||
| GM | 26.66% | ||
| FCFM | 30.94% |
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
ROICexgc growth 3Y-34.31%
ROICexgc 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 Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Debt/EBITDA | 68.98 | ||
| Cap/Depr | 2620.45% | ||
| Cap/Sales | 13.58% | ||
| Interest Coverage | 0.44 | ||
| Cash Conversion | 184.16% | ||
| Profit Quality | 147.99% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.72 |
F-Score6
WACC5.11%
ROIC/WACC0.19
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)9.02%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%10.61%
EPS Next Y8.61%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%75.53%
Revenue Next Year18.05%
Revenue Next 2Y11.7%
Revenue Next 3Y9.97%
Revenue Next 5YN/A
EBIT growth 1Y885.5%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.4%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y30.46%
OCF growth 3Y2.47%
OCF growth 5YN/A
ANNALY CAPITAL MANAGEMENT IN / NLY FAQ
What is the ChartMill fundamental rating of ANNALY CAPITAL MANAGEMENT IN (NLY) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NLY.
What is the valuation status for NLY stock?
ChartMill assigns a valuation rating of 8 / 10 to ANNALY CAPITAL MANAGEMENT IN (NLY). This can be considered as Undervalued.
Can you provide the profitability details for ANNALY CAPITAL MANAGEMENT IN?
ANNALY CAPITAL MANAGEMENT IN (NLY) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for NLY stock?
The Price/Earnings (PE) ratio for ANNALY CAPITAL MANAGEMENT IN (NLY) is 7.86 and the Price/Book (PB) ratio is 0.98.
What is the earnings growth outlook for ANNALY CAPITAL MANAGEMENT IN?
The Earnings per Share (EPS) of ANNALY CAPITAL MANAGEMENT IN (NLY) is expected to grow by 8.61% in the next year.