ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
NYSE:NLY - New York Stock Exchange, Inc. - US0357108390 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to NLY. NLY was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NLY has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on NLY.
1. Profitability
1.1 Basic Checks
In the past year NLY was profitable.
NLY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NLY reported negative net income in multiple years.
In the past 5 years NLY always reported a positive cash flow from operatings.
1.2 Ratios
NLY's Return On Assets of 0.48% is in line compared to the rest of the industry. NLY outperforms 60.00% of its industry peers.
NLY has a Return On Equity (3.91%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.54%, NLY is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.91% | ||
| ROIC | 0.54% |
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
Looking at the Profit Margin, with a value of 9.21%, NLY is in line with its industry, outperforming 53.85% of the companies in the same industry.
NLY's Profit Margin has declined in the last couple of years.
NLY's Operating Margin of 12.70% is in line compared to the rest of the industry. NLY outperforms 58.46% of its industry peers.
NLY's Operating Margin has declined in the last couple of years.
NLY has a worse Gross Margin (15.98%) than 64.62% of its industry peers.
NLY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.7% | ||
| PM (TTM) | 9.21% | ||
| GM | 15.98% |
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.
The debt/assets ratio for NLY is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.77, we must say that NLY is in the distress zone and has some risk of bankruptcy.
NLY has a worse Altman-Z score (-0.77) than 75.38% of its industry peers.
NLY has a debt to FCF ratio of 122.75. This is a negative value and a sign of low solvency as NLY would need 122.75 years to pay back of all of its debts.
NLY has a Debt to FCF ratio (122.75) which is in line with its industry peers.
NLY has a Debt/Equity ratio of 6.82. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.82, NLY is not doing good in the industry: 70.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.82 | ||
| Debt/FCF | 122.76 | ||
| Altman-Z | -0.77 |
ROIC/WACC0.11
WACC5.12%
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.
NLY has a worse Current ratio (0.04) than 84.62% 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 worse Quick ratio (0.04) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.96% over the past year.
NLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.74% yearly.
Looking at the last year, NLY shows a very strong growth in Revenue. The Revenue has grown by 37.29%.
The Revenue has been growing by 45.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.96%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%12.5%
Revenue 1Y (TTM)37.29%
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.
NLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
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
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.
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
The Price/Earnings ratio is 6.88, which indicates a rather cheap valuation of NLY.
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 (26.35), we can say NLY is valued rather cheaply.
A Price/Forward Earnings ratio of 6.49 indicates a rather cheap valuation of NLY.
87.69% of the companies in the same industry are more expensive than NLY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, NLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
NLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 46.62 |
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.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y4.51%
EPS Next 3Y3.69%
5. Dividend
5.1 Amount
NLY has a Yearly Dividend Yield of 14.37%, which is a nice return.
NLY's Dividend Yield is a higher than the industry average which is at 12.22.
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 | 14.37% |
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.
The dividend of NLY decreased recently.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
NLY pays out 303.72% of its income as dividend. This is not a sustainable payout ratio.
DP303.72%
EPS Next 2Y4.51%
EPS Next 3Y3.69%
19.13
-0.05 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.29%
Inst Owner Change3.26%
Ins Owners0.12%
Ins Owner Change5.25%
Market Cap11.58B
Analysts77.78
Price Target20.88 (9.15%)
Short Float %1.78%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.37% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP303.72%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.45%
Min EPS beat(2)2.14%
Max EPS beat(2)6.77%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-2.22%
Max EPS beat(4)6.77%
EPS beat(8)4
Avg EPS beat(8)0.4%
EPS beat(12)7
Avg EPS beat(12)3.42%
EPS beat(16)11
Avg EPS beat(16)4.31%
Revenue beat(2)2
Avg Revenue beat(2)2.63%
Min Revenue beat(2)0.08%
Max Revenue beat(2)5.18%
Revenue beat(4)4
Avg Revenue beat(4)5.07%
Min Revenue beat(4)0.08%
Max Revenue beat(4)8.41%
Revenue beat(8)7
Avg Revenue beat(8)3.82%
Revenue beat(12)8
Avg Revenue beat(12)-3.08%
Revenue beat(16)11
Avg Revenue beat(16)16.23%
PT rev (1m)-0.49%
PT rev (3m)-3.42%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)1.84%
EPS NY rev (1m)0%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-2.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.49 | ||
| P/S | 2.1 | ||
| P/FCF | 16.03 | ||
| P/OCF | 7.95 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 46.62 |
EPS(TTM)2.78
EY14.53%
EPS(NY)2.95
Fwd EY15.41%
FCF(TTM)1.19
FCFY6.24%
OCF(TTM)2.41
OCFY12.58%
SpS9.13
BVpS21.48
TBVpS21.46
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.91% | ||
| ROCE | 1.85% | ||
| ROIC | 0.54% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 0.56% | ||
| OM | 12.7% | ||
| PM (TTM) | 9.21% | ||
| GM | 15.98% | ||
| FCFM | 13.07% |
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 Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.82 | ||
| Debt/FCF | 122.76 | ||
| Debt/EBITDA | 120.74 | ||
| Cap/Depr | 2246.95% | ||
| Cap/Sales | 13.3% | ||
| Interest Coverage | 0.19 | ||
| Cash Conversion | 198.42% | ||
| Profit Quality | 141.96% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.77 |
F-Score6
WACC5.12%
ROIC/WACC0.11
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)37.29%
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 1Y328.86%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.53%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y-37.33%
OCF growth 3Y2.47%
OCF growth 5YN/A