ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
22 USD
-0.15 (-0.68%)
22.01 USD
+0.01 (+0.05%)
Taking everything into account, NLY scores 4 out of 10 in our fundamental rating. NLY was compared to 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
NLY had positive earnings in the past year.
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.
NLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NLY (0.51%) is better than 71.64% of its industry peers.
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.
NLY's Return On Invested Capital of 0.55% is fine compared to the rest of the industry. NLY outperforms 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
NLY has a better Profit Margin (10.25%) than 71.64% of its industry peers.
In the last couple of years the Profit Margin of NLY has declined.
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.
NLY's Operating Margin has declined in the last couple of years.
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.
NLY's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for NLY has been increased compared to 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.
NLY's Altman-Z score of -0.74 is on the low side compared to the rest of the industry. NLY is outperformed by 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.
With a Debt to FCF ratio value of 188.60, NLY is not doing good in the industry: 68.66% of the companies in the same industry are doing better.
NLY has a Debt/Equity ratio of 7.16. This is a high value indicating a heavy dependency on external financing.
NLY's Debt to Equity ratio of 7.16 is on the low side compared to the rest of the industry. NLY is outperformed by 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
WACC5.31%
2.3 Liquidity
A Current Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
With a Current ratio value of 0.06, NLY is not doing good in the industry: 79.10% of the companies in the same industry are doing better.
A Quick Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
With a Quick ratio value of 0.06, NLY is not doing good in the industry: 79.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.39% over the past year.
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.
NLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.01%.
Measured over the past years, NLY shows a very strong growth in Revenue. The Revenue has been growing by 45.38% on average per year.
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
Based on estimates for the next years, NLY will show a small growth in Earnings Per Share. The EPS will grow by 3.28% on average per year.
Based on estimates for the next years, NLY will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.
EPS Next Y7.88%
EPS Next 2Y5.07%
EPS Next 3Y3.28%
EPS Next 5YN/A
Revenue Next Year14.35%
Revenue Next 2Y7.31%
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.
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
Based on the Price/Earnings ratio of 7.77, the valuation of NLY can be described as very cheap.
Based on the Price/Earnings ratio, NLY is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. NLY is valued rather cheaply when compared to this.
NLY is valuated cheaply with a Price/Forward Earnings ratio of 7.38.
Based on the Price/Forward Earnings ratio, NLY is valued cheaper than 80.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, NLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 7.38 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NLY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.82 | ||
| EV/EBITDA | 49.08 |
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)0.99
PEG (5Y)N/A
EPS Next 2Y5.07%
EPS Next 3Y3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.60%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is slightly below the industry average, which is at 11.13.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.6% |
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 2Y5.07%
EPS Next 3Y3.28%
22
-0.15 (-0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.12%
Inst Owner Change-1.47%
Ins Owners0.11%
Ins Owner Change-4.05%
Market Cap14.13B
Analysts77.78
Price Target21.34 (-3%)
Short Float %1.85%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.6% |
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)1.21%
PT rev (3m)2.2%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)3.01%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 7.38 | ||
| P/S | 2.52 | ||
| P/FCF | 27.82 | ||
| P/OCF | 12.18 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 49.08 |
EPS(TTM)2.83
EY12.86%
EPS(NY)2.98
Fwd EY13.55%
FCF(TTM)0.79
FCFY3.59%
OCF(TTM)1.81
OCFY8.21%
SpS8.74
BVpS20.84
TBVpS20.83
PEG (NY)0.99
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
WACC5.31%
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 Y7.88%
EPS Next 2Y5.07%
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 Year14.35%
Revenue Next 2Y7.31%
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