ANNALY CAPITAL MANAGEMENT IN (NLY)

US0357108390 - REIT

19.44  -0.29 (-1.47%)

Premarket: 19.43 -0.01 (-0.05%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to NLY. NLY was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NLY may be in some trouble as it scores bad on both profitability and health. NLY has a valuation in line with the averages, but it does not seem to be growing.



1

1. Profitability

1.1 Basic Checks

In the past year NLY was profitable.
NLY had a positive operating cash flow in the past year.
In multiple years NLY reported negative net income over the last 5 years.
NLY had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of NLY (-1.91%) is worse than 90.63% of its industry peers.
NLY has a worse Return On Equity (-15.86%) than 96.88% of its industry peers.
Industry RankSector Rank
ROA -1.91%
ROE -15.86%
ROIC N/A
ROA(3y)1.01%
ROA(5y)0.02%
ROE(3y)5.27%
ROE(5y)-1.23%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for NLY so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A

1

2. Health

2.1 Basic Checks

NLY does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NLY has more shares outstanding
Compared to 5 years ago, NLY has more shares outstanding
The debt/assets ratio for NLY has been reduced compared to a year ago.

2.2 Solvency

NLY has an Altman-Z score of -0.96. This is a bad value and indicates that NLY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.96, NLY is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
NLY has a debt to FCF ratio of 39.35. This is a negative value and a sign of low solvency as NLY would need 39.35 years to pay back of all of its debts.
NLY has a Debt to FCF ratio of 39.35. This is comparable to the rest of the industry: NLY outperforms 57.81% of its industry peers.
A Debt/Equity ratio of 6.89 is on the high side and indicates that NLY has dependencies on debt financing.
NLY has a worse Debt to Equity ratio (6.89) than 85.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.89
Debt/FCF 39.35
Altman-Z -0.96
ROIC/WACCN/A
WACC5.26%

2.3 Liquidity

A Current Ratio of 0.08 indicates that NLY may have some problems paying its short term obligations.
NLY's Current ratio of 0.08 is on the low side compared to the rest of the industry. NLY is outperformed by 73.44% of its industry peers.
A Quick Ratio of 0.08 indicates that NLY may have some problems paying its short term obligations.
With a Quick ratio value of 0.08, NLY is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.08
Quick Ratio 0.08

2

3. Growth

3.1 Past

NLY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.79%.
NLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.62% yearly.
The Revenue for NLY has decreased by -26.28% in the past year. This is quite bad
The Revenue has been growing slightly by 1.06% on average over the past years.
EPS 1Y (TTM)-32.79%
EPS 3Y-13.28%
EPS 5Y-9.62%
EPS growth Q2Q-23.6%
Revenue 1Y (TTM)-26.28%
Revenue growth 3Y90.02%
Revenue growth 5Y1.06%
Revenue growth Q2Q533.86%

3.2 Future

NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.47% yearly.
NLY is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -19.51% yearly.
EPS Next Y-5.76%
EPS Next 2Y-2.34%
EPS Next 3Y4.47%
EPS Next 5YN/A
Revenue Next Year10.16%
Revenue Next 2Y6.53%
Revenue Next 3Y-19.51%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

NLY is valuated cheaply with a Price/Earnings ratio of 6.77.
NLY's Price/Earnings ratio is rather cheap when compared to the industry. NLY is cheaper than 82.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, NLY is valued rather cheaply.
NLY is valuated cheaply with a Price/Forward Earnings ratio of 7.19.
81.25% 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 22.74.
Industry RankSector Rank
PE 6.77
Fwd PE 7.19

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 87.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.93
EV/EBITDA N/A

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.34%
EPS Next 3Y4.47%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 12.99%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is a higher than the industry average which is at 11.86.
Compared to an average S&P500 Dividend Yield of 2.34, NLY pays a better dividend.
Industry RankSector Rank
Dividend Yield 12.99%

5.2 History

The dividend of NLY decreases each year by -8.86%.
NLY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.86%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

NLY has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-85.04%
EPS Next 2Y-2.34%
EPS Next 3Y4.47%

ANNALY CAPITAL MANAGEMENT IN

NYSE:NLY (3/27/2024, 8:04:01 PM)

Premarket: 19.43 -0.01 (-0.05%)

19.44

-0.29 (-1.47%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.72B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 12.99%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 6.77
Fwd PE 7.19
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.91%
ROE -15.86%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 6.89
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.08
Quick Ratio 0.08
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-32.79%
EPS 3Y-13.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-26.28%
Revenue growth 3Y90.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y