ANNALY CAPITAL MANAGEMENT IN (NLY) Fundamental Analysis & Valuation
NYSE:NLY • US0357108390
22.95 USD
-0.09 (-0.39%)
At close: Mar 4, 2026
23 USD
+0.05 (+0.22%)
After Hours: 3/4/2026, 8:04:00 PM
This NLY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. NLY Profitability Analysis
1.1 Basic Checks
- In the past year NLY was profitable.
- In the past year NLY had a positive cash flow from operations.
- Of the past 5 years NLY 4 years were profitable.
- NLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.38%, NLY belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
- With an excellent Return On Equity value of 11.62%, NLY belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
- NLY has a better Return On Invested Capital (1.22%) than 86.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 11.62% | ||
| ROIC | 1.22% |
ROA(3y)0.09%
ROA(5y)1.05%
ROE(3y)0.83%
ROE(5y)6.83%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- NLY's Profit Margin of 26.22% is amongst the best of the industry. NLY outperforms 86.76% of its industry peers.
- In the last couple of years the Profit Margin of NLY has declined.
- With an excellent Operating Margin value of 28.69%, NLY belongs to the best of the industry, outperforming 85.29% 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 31.49% is in line compared to the rest of the industry. NLY outperforms 55.88% of its industry peers.
- NLY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.69% | ||
| PM (TTM) | 26.22% | ||
| GM | 31.49% |
OM growth 3Y-19.76%
OM growth 5YN/A
PM growth 3Y-19.07%
PM growth 5YN/A
GM growth 3Y-19.28%
GM growth 5YN/A
2. NLY Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NLY is destroying value.
- Compared to 1 year ago, NLY has more shares outstanding
- NLY has more shares outstanding than it did 5 years ago.
- NLY has a better debt/assets ratio than last year.
2.2 Solvency
- NLY has an Altman-Z score of -0.70. This is a bad value and indicates that NLY is not financially healthy and even has some risk of bankruptcy.
- NLY has a Altman-Z score of -0.70. This is in the lower half of the industry: NLY underperforms 73.53% of its industry peers.
- NLY has a Debt/Equity ratio of 7.22. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of NLY (7.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.7 |
ROIC/WACC0.3
WACC4.12%
2.3 Liquidity
- A Current Ratio of 0.03 indicates that NLY may have some problems paying its short term obligations.
- NLY has a worse Current ratio (0.03) than 85.29% of its industry peers.
- NLY has a Quick Ratio of 0.03. 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 worse Quick ratio (0.03) than 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. NLY Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 8.15% over the past year.
- The Earnings Per Share has been decreasing by -7.87% on average over the past years.
- Looking at the last year, NLY shows a very strong growth in Revenue. The Revenue has grown by 22.06%.
- NLY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 82.65% yearly.
EPS 1Y (TTM)8.15%
EPS 3Y-11.9%
EPS 5Y-7.87%
EPS Q2Q%2.78%
Revenue 1Y (TTM)22.06%
Revenue growth 3Y29.74%
Revenue growth 5Y82.65%
Sales Q2Q%79.44%
3.2 Future
- NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.96% yearly.
- The Revenue is expected to grow by 14.58% on average over the next years. This is quite good.
EPS Next Y3.08%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
EPS Next 5YN/A
Revenue Next Year20.28%
Revenue Next 2Y10.98%
Revenue Next 3Y14.58%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. NLY Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.86, which indicates a rather cheap valuation of NLY.
- NLY's Price/Earnings ratio is rather cheap when compared to the industry. NLY is cheaper than 83.82% of the companies in the same industry.
- NLY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
- With a Price/Forward Earnings ratio of 7.63, the valuation of NLY can be described as very cheap.
- Based on the Price/Forward Earnings ratio, NLY is valued a bit cheaper than 72.06% of the companies in the same industry.
- NLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
- 95.59% of the companies in the same industry are more expensive than NLY, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NLY does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of NLY may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y0.82%
EPS Next 3Y0.96%
5. NLY Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 8.97%, NLY is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.29, NLY is paying slightly less dividend.
- NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.97% |
5.2 History
- The dividend of NLY decreases each year by -6.82%.
- NLY has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of NLY decreased recently.
Dividend Growth(5Y)-6.82%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- NLY pays out 100.69% of its income as dividend. This is not a sustainable payout ratio.
DP100.69%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
NLY Fundamentals: All Metrics, Ratios and Statistics
22.95
-0.09 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners61.11%
Inst Owner Change3.98%
Ins Owners0.08%
Ins Owner Change1.54%
Market Cap16.22B
Revenue(TTM)7.13B
Net Income(TTM)1.87B
Analysts78.82
Price Target24.89 (8.45%)
Short Float %1.92%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.97% |
Yearly Dividend2.93
Dividend Growth(5Y)-6.82%
DP100.69%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.18%
Min EPS beat(2)0.16%
Max EPS beat(2)0.2%
EPS beat(4)4
Avg EPS beat(4)0.82%
Min EPS beat(4)0.16%
Max EPS beat(4)2.14%
EPS beat(8)6
Avg EPS beat(8)1.21%
EPS beat(12)8
Avg EPS beat(12)0.79%
EPS beat(16)11
Avg EPS beat(16)3.32%
Revenue beat(2)2
Avg Revenue beat(2)35.72%
Min Revenue beat(2)9.78%
Max Revenue beat(2)61.67%
Revenue beat(4)4
Avg Revenue beat(4)19.82%
Min Revenue beat(4)0.08%
Max Revenue beat(4)61.67%
Revenue beat(8)8
Avg Revenue beat(8)13.24%
Revenue beat(12)10
Avg Revenue beat(12)9.08%
Revenue beat(16)12
Avg Revenue beat(16)26.14%
PT rev (1m)7.04%
PT rev (3m)10.41%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)12.24%
Revenue NQ rev (3m)12.24%
Revenue NY rev (1m)12.18%
Revenue NY rev (3m)14.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.63 | ||
| P/S | 2.28 | ||
| P/FCF | N/A | ||
| P/OCF | 23.42 | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 22.31 |
EPS(TTM)2.92
EY12.72%
EPS(NY)3.01
Fwd EY13.11%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.98
OCFY4.27%
SpS10.08
BVpS22.76
TBVpS22.75
PEG (NY)2.56
PEG (5Y)N/A
Graham Number38.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 11.62% | ||
| ROCE | 4.2% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.24% | ||
| ROICexgc | 1.24% | ||
| OM | 28.69% | ||
| PM (TTM) | 26.22% | ||
| GM | 31.49% | ||
| FCFM | N/A |
ROA(3y)0.09%
ROA(5y)1.05%
ROE(3y)0.83%
ROE(5y)6.83%
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-12.29%
ROICexgc growth 5YN/A
ROICexc growth 3Y-12.19%
ROICexc growth 5YN/A
OM growth 3Y-19.76%
OM growth 5YN/A
PM growth 3Y-19.07%
PM growth 5YN/A
GM growth 3Y-19.28%
GM growth 5YN/A
F-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 55.89 | ||
| Cap/Depr | 2593.82% | ||
| Cap/Sales | 12.38% | ||
| Interest Coverage | 0.59 | ||
| Cash Conversion | 33.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | -0.7 |
F-Score4
WACC4.12%
ROIC/WACC0.3
Cap/Depr(3y)2345.59%
Cap/Depr(5y)2748.31%
Cap/Sales(3y)14.47%
Cap/Sales(5y)18.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.15%
EPS 3Y-11.9%
EPS 5Y-7.87%
EPS Q2Q%2.78%
EPS Next Y3.08%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
EPS Next 5YN/A
Revenue 1Y (TTM)22.06%
Revenue growth 3Y29.74%
Revenue growth 5Y82.65%
Sales Q2Q%79.44%
Revenue Next Year20.28%
Revenue Next 2Y10.98%
Revenue Next 3Y14.58%
Revenue Next 5YN/A
EBIT growth 1Y99.1%
EBIT growth 3Y4.11%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-107.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-79.07%
OCF growth 3Y-49.47%
OCF growth 5Y5.59%
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 of ANNALY CAPITAL MANAGEMENT IN (NLY) stock?
ChartMill assigns a valuation rating of 6 / 10 to ANNALY CAPITAL MANAGEMENT IN (NLY). This can be considered as Fairly Valued.
Can you provide the profitability details for ANNALY CAPITAL MANAGEMENT IN?
ANNALY CAPITAL MANAGEMENT IN (NLY) has a profitability rating of 6 / 10.
What is the valuation of ANNALY CAPITAL MANAGEMENT IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ANNALY CAPITAL MANAGEMENT IN (NLY) is 7.86 and the Price/Book (PB) ratio is 1.01.
What is the financial health of ANNALY CAPITAL MANAGEMENT IN (NLY) stock?
The financial health rating of ANNALY CAPITAL MANAGEMENT IN (NLY) is 1 / 10.