ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
20.76 USD
+0.06 (+0.29%)
20.7502 USD
-0.01 (-0.05%)
Overall NLY gets a fundamental rating of 4 out of 10. We evaluated NLY against 67 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. 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.
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.
1.2 Ratios
With a decent Return On Assets value of 0.51%, NLY is doing good in the industry, outperforming 71.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.30%, NLY is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
The Return On Invested Capital of NLY (0.55%) is better than 67.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 4.3% | ||
| ROIC | 0.55% |
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
The Profit Margin of NLY (10.25%) is better than 71.64% of its industry peers.
NLY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.53%, NLY is in the better half of the industry, outperforming 70.15% 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 16.85% is in line compared to the rest of the industry. NLY outperforms 52.24% of its industry peers.
In the last couple of years the Gross Margin of NLY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.53% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.85% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NLY is destroying value.
The number of shares outstanding for NLY has been increased compared to 1 year ago.
NLY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NLY is higher compared to a year ago.
2.2 Solvency
NLY has an Altman-Z score of -0.74. This is a bad value and indicates that NLY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NLY (-0.74) is worse than 76.12% of its industry peers.
The Debt to FCF ratio of NLY is 188.60, which is on the high side as it means it would take NLY, 188.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 188.60, NLY is doing worse than 68.66% of the companies in the same industry.
NLY has a Debt/Equity ratio of 7.16. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NLY (7.16) is worse than 67.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Altman-Z | -0.74 |
ROIC/WACC0.1
WACC5.25%
2.3 Liquidity
A Current Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
NLY has a worse Current ratio (0.06) than 79.10% of its industry peers.
A Quick Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
The Quick ratio of NLY (0.06) is worse than 79.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
NLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.39%.
Measured over the past years, NLY shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.74% on average per year.
Looking at the last year, NLY shows a very strong growth in Revenue. The Revenue has grown by 39.01%.
NLY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.38% yearly.
EPS 1Y (TTM)6.39%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%7.35%
Revenue 1Y (TTM)39.01%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.52%
3.2 Future
NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.28% yearly.
NLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
EPS Next Y8.2%
EPS Next 2Y5.61%
EPS Next 3Y3.28%
EPS Next 5YN/A
Revenue Next Year15.49%
Revenue Next 2Y8.3%
Revenue Next 3Y3.16%
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.
4. Valuation
4.1 Price/Earnings Ratio
NLY is valuated cheaply with a Price/Earnings ratio of 7.34.
Based on the Price/Earnings ratio, NLY is valued cheaper than 85.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. NLY is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.89, which indicates a rather cheap valuation of NLY.
85.07% of the companies in the same industry are more expensive than NLY, based on the Price/Forward Earnings ratio.
NLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 89.55% of the companies listed in the same industry.
NLY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.25 | ||
| EV/EBITDA | 47.9 |
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)0.89
PEG (5Y)N/A
EPS Next 2Y5.61%
EPS Next 3Y3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.53%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is a higher than the industry average which is at 11.22.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.53% |
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
285.38% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP285.38%
EPS Next 2Y5.61%
EPS Next 3Y3.28%
20.76
+0.06 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.55%
Inst Owner Change-1.47%
Ins Owners0.1%
Ins Owner Change-4.05%
Market Cap13.33B
Analysts77.78
Price Target21.45 (3.32%)
Short Float %2.2%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.53% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP285.38%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.45%
Min EPS beat(2)0.77%
Max EPS beat(2)2.14%
EPS beat(4)3
Avg EPS beat(4)1.86%
Min EPS beat(4)-2.22%
Max EPS beat(4)6.77%
EPS beat(8)5
Avg EPS beat(8)0.99%
EPS beat(12)7
Avg EPS beat(12)1.29%
EPS beat(16)11
Avg EPS beat(16)3.76%
Revenue beat(2)2
Avg Revenue beat(2)3.91%
Min Revenue beat(2)0.08%
Max Revenue beat(2)7.74%
Revenue beat(4)4
Avg Revenue beat(4)4.9%
Min Revenue beat(4)0.08%
Max Revenue beat(4)7.74%
Revenue beat(8)7
Avg Revenue beat(8)4.27%
Revenue beat(12)8
Avg Revenue beat(12)-13.15%
Revenue beat(16)12
Avg Revenue beat(16)25.03%
PT rev (1m)0.48%
PT rev (3m)2.69%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.19%
Revenue NY rev (1m)1%
Revenue NY rev (3m)5.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 6.89 | ||
| P/S | 2.38 | ||
| P/FCF | 26.25 | ||
| P/OCF | 11.49 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 47.9 |
EPS(TTM)2.83
EY13.63%
EPS(NY)3.01
Fwd EY14.51%
FCF(TTM)0.79
FCFY3.81%
OCF(TTM)1.81
OCFY8.7%
SpS8.74
BVpS20.84
TBVpS20.83
PEG (NY)0.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 4.3% | ||
| ROCE | 1.86% | ||
| ROIC | 0.55% | ||
| ROICexc | 0.56% | ||
| ROICexgc | 0.56% | ||
| OM | 13.53% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.85% | ||
| FCFM | 9.05% |
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-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Debt/EBITDA | 120.97 | ||
| Cap/Depr | 2006.36% | ||
| Cap/Sales | 11.63% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 146.56% | ||
| Profit Quality | 88.29% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | -0.74 |
F-Score7
WACC5.25%
ROIC/WACC0.1
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)6.39%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%7.35%
EPS Next Y8.2%
EPS Next 2Y5.61%
EPS Next 3Y3.28%
EPS Next 5YN/A
Revenue 1Y (TTM)39.01%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.52%
Revenue Next Year15.49%
Revenue Next 2Y8.3%
Revenue Next 3Y3.16%
Revenue Next 5YN/A
EBIT growth 1Y258.52%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-77.28%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y-58.16%
OCF growth 3Y2.47%
OCF growth 5YN/A