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 4 out of 10 to NLY. NLY was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of NLY while its profitability can be described as average. NLY is valued quite cheap, while showing a decent growth score. This is a good 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.
Each year in the past 5 years NLY had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.51%, NLY is doing good in the industry, outperforming 70.15% of the companies in the same industry.
NLY's Return On Equity of 4.30% is fine compared to the rest of the industry. NLY outperforms 65.67% of its industry peers.
With a decent Return On Invested Capital value of 0.55%, NLY is doing good in the industry, outperforming 68.66% of the companies in the same industry.
| 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 70.15% of its industry peers.
In the last couple of years the Profit Margin of NLY has declined.
With a decent Operating Margin value of 13.53%, NLY is doing good in 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.
Looking at the Gross Margin, with a value of 16.85%, NLY is in line with its industry, outperforming 52.24% of the companies in the same industry.
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
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
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 has a worse Altman-Z score (-0.74) than 73.13% of its industry peers.
NLY has a debt to FCF ratio of 188.60. This is a negative value and a sign of low solvency as NLY would need 188.60 years to pay back of 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.
A Debt/Equity ratio of 7.16 is on the high side and indicates that NLY has dependencies on debt financing.
With a Debt to Equity ratio value of 7.16, NLY is not doing good in the industry: 67.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Altman-Z | -0.74 |
ROIC/WACC0.1
WACC5.3%
2.3 Liquidity
A Current Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
NLY has a Current ratio of 0.06. This is amonst the worse of the industry: NLY underperforms 83.58% of its industry peers.
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: 83.58% 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.
The Earnings Per Share has been decreasing by -7.74% on average over the past years.
Looking at the last year, NLY shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 3.40% on average over the next years.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y7.66%
EPS Next 2Y4.86%
EPS Next 3Y3.4%
EPS Next 5YN/A
Revenue Next Year13.4%
Revenue Next 2Y7.55%
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 7.30.
Compared to the rest of the industry, the Price/Earnings ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 88.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, NLY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.96, the valuation of NLY can be described as very cheap.
80.60% 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 35.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaply inside the industry as 89.55% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as NLY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.11 | ||
| EV/EBITDA | 47.86 |
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)0.95
PEG (5Y)N/A
EPS Next 2Y4.86%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.78%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is slightly below the industry average, which is at 10.69.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
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.
NLY has decreased its dividend recently.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
NLY pays out 285.38% of its income as dividend. This is not a sustainable payout ratio.
DP285.38%
EPS Next 2Y4.86%
EPS Next 3Y3.4%
20.65
-0.18 (-0.86%)
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-1.5%
Ins Owners0.11%
Ins Owner Change-0.47%
Market Cap13.26B
Analysts77.78
Price Target21.34 (3.34%)
Short Float %1.78%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
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)2.2%
PT rev (3m)1.7%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)5.19%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)3.25%
Revenue NY rev (3m)3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.96 | ||
| P/S | 2.36 | ||
| P/FCF | 26.11 | ||
| P/OCF | 11.43 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 47.86 |
EPS(TTM)2.83
EY13.7%
EPS(NY)2.97
Fwd EY14.38%
FCF(TTM)0.79
FCFY3.83%
OCF(TTM)1.81
OCFY8.75%
SpS8.74
BVpS20.84
TBVpS20.83
PEG (NY)0.95
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
WACC5.3%
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 Y7.66%
EPS Next 2Y4.86%
EPS Next 3Y3.4%
EPS Next 5YN/A
Revenue 1Y (TTM)39.01%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.52%
Revenue Next Year13.4%
Revenue Next 2Y7.55%
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