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ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis

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

18.79  +0.06 (+0.32%)

After market: 18.709 -0.08 (-0.43%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to NLY. NLY was compared to 65 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 may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

4

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.
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 in line with its industry peers.
Looking at the Return On Equity, with a value of 6.72%, NLY is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
With a decent Return On Invested Capital value of 0.79%, NLY is doing good in the industry, outperforming 64.62% of the companies in the same industry.
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 has a Profit Margin of 14.51%. This is in the better half of the industry: NLY outperforms 67.69% of its industry peers.
In the last couple of years the Profit Margin of NLY has declined.
With a decent Operating Margin value of 17.59%, NLY is doing good in the industry, outperforming 64.62% of the companies in the same industry.
NLY's Operating Margin has declined in the last couple of years.
The Gross Margin of NLY (20.52%) is worse than 70.77% of its industry peers.
NLY's Gross Margin has declined in the last couple of years.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLY is destroying value.
Compared to 1 year ago, NLY has more shares outstanding
Compared to 5 years ago, NLY has more shares outstanding
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

NLY has an Altman-Z score of -0.76. This is a bad value and indicates that NLY is not financially healthy and even 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.
NLY has a better Debt to FCF ratio (36.61) than 67.69% of its industry peers.
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/WACC0.16
WACC5.1%
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's Current ratio of 0.07 is on the low side compared to the rest of the industry. NLY is outperformed by 70.77% of its industry peers.
A Quick Ratio of 0.07 indicates that NLY may have some problems paying its short term obligations.
NLY's Quick ratio of 0.07 is on the low side compared to the rest of the industry. NLY is outperformed by 70.77% of its industry peers.
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%.
NLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.74% yearly.
The Revenue has grown by 138.96% in the past year. This is a very strong growth!
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%20.34%

3.2 Future

NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.69% yearly.
Based on estimates for the next years, NLY will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y7.86%
EPS Next 2Y4.51%
EPS Next 3Y3.69%
EPS Next 5YN/A
Revenue Next Year10.07%
Revenue Next 2Y5.07%
Revenue Next 3Y3.15%
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.
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 2027 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 6.76, the valuation of NLY can be described as very cheap.
84.62% of the companies in the same industry are more expensive than NLY, based on the Price/Earnings ratio.
NLY is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.37, which indicates a rather cheap valuation of NLY.
Based on the Price/Forward Earnings ratio, NLY is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
NLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 6.76
Fwd PE 6.37
NLY Price Earnings VS Forward Price EarningsNLY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
Based on the Price/Free Cash Flow ratio, NLY is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.65
EV/EBITDA 29.94
NLY Per share dataNLY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y4.51%
EPS Next 3Y3.69%

5

5. Dividend

5.1 Amount

NLY has a Yearly Dividend Yield of 14.91%, which is a nice return.
NLY's Dividend Yield is a higher than the industry average which is at 14.23.
Compared to an average S&P500 Dividend Yield of 2.39, NLY pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.91%

5.2 History

The dividend of NLY decreases each year by -10.87%.
NLY has been paying a dividend for at least 10 years, so it has 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 2Y4.51%
EPS Next 3Y3.69%
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 (5/23/2025, 8:40:44 PM)

After market: 18.709 -0.08 (-0.43%)

18.79

+0.06 (+0.32%)

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 Change3.26%
Ins Owners0.13%
Ins Owner Change5.25%
Market Cap11.37B
Analysts77.78
Price Target20.99 (11.71%)
Short Float %2.3%
Short Ratio1.57
Dividend
Industry RankSector Rank
Dividend Yield 14.91%
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)-2.95%
PT rev (3m)-2.26%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.59%
EPS NY rev (1m)1.74%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-1.8%
Revenue NY rev (3m)-1.98%
Valuation
Industry RankSector Rank
PE 6.76
Fwd PE 6.37
P/S 1.95
P/FCF 4.65
P/OCF 3.43
P/B 0.9
P/tB 0.9
EV/EBITDA 29.94
EPS(TTM)2.78
EY14.8%
EPS(NY)2.95
Fwd EY15.69%
FCF(TTM)4.04
FCFY21.53%
OCF(TTM)5.47
OCFY29.12%
SpS9.65
BVpS20.84
TBVpS20.82
PEG (NY)0.86
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
WACC5.1%
ROIC/WACC0.16
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 Y7.86%
EPS Next 2Y4.51%
EPS Next 3Y3.69%
EPS Next 5YN/A
Revenue 1Y (TTM)138.96%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.34%
Revenue Next Year10.07%
Revenue Next 2Y5.07%
Revenue Next 3Y3.15%
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