ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLY - US0357108390 - REIT
23.3 USD
+0.04 (+0.17%)
23.48 USD
+0.18 (+0.77%)
We assign a fundamental rating of 5 out of 10 to NLY. NLY was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on NLY.
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.
In multiple years NLY reported negative net income over the last 5 years.
NLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NLY has a better Return On Assets (1.07%) than 83.82% of its industry peers.
The Return On Equity of NLY (9.00%) is better than 94.12% of its industry peers.
With an excellent Return On Invested Capital value of 0.98%, NLY belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9% | ||
| ROIC | 0.98% |
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 20.91%, NLY belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
NLY's Profit Margin has declined in the last couple of years.
NLY's Operating Margin of 23.66% is amongst the best of the industry. NLY outperforms 85.29% of its industry peers.
In the last couple of years the Operating Margin of NLY has declined.
Looking at the Gross Margin, with a value of 26.66%, NLY is in line with its industry, outperforming 48.53% of the companies in the same industry.
In the last couple of years the Gross Margin of NLY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.66% | ||
| PM (TTM) | 20.91% | ||
| GM | 26.66% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLY is destroying value.
The number of shares outstanding for NLY has been increased compared to 1 year ago.
NLY has more shares outstanding than it did 5 years ago.
NLY has a worse debt/assets ratio than last year.
2.2 Solvency
NLY has an Altman-Z score of -0.71. This is a bad value and indicates that NLY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.71, NLY is doing worse than 75.00% of the companies in the same industry.
NLY has a debt to FCF ratio of 53.91. This is a negative value and a sign of low solvency as NLY would need 53.91 years to pay back of all of its debts.
NLY's Debt to FCF ratio of 53.91 is fine compared to the rest of the industry. NLY outperforms 77.94% of its industry peers.
A Debt/Equity ratio of 7.18 is on the high side and indicates that NLY has dependencies on debt financing.
NLY has a Debt to Equity ratio of 7.18. This is in the lower half of the industry: NLY underperforms 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.19
WACC5.14%
2.3 Liquidity
A Current Ratio of 0.04 indicates that NLY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.04, NLY is doing worse than 85.29% of the companies in the same industry.
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's Quick ratio of 0.04 is on the low side compared to the rest of the industry. NLY is outperformed by 85.29% 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 grown by an nice 9.02% 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.
The Revenue has grown by 32.20% in the past year. This is a very strong growth!
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)9.02%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%10.61%
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%75.53%
3.2 Future
The Earnings Per Share is expected to grow by 3.22% on average over the next years.
The Revenue is expected to grow by 9.97% on average over the next years. This is quite good.
EPS Next Y8.73%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue Next Year18.88%
Revenue Next 2Y13.32%
Revenue Next 3Y9.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.03, the valuation of NLY can be described as very reasonable.
82.35% of the companies in the same industry are more expensive than NLY, based on the Price/Earnings ratio.
NLY is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
NLY is valuated cheaply with a Price/Forward Earnings ratio of 7.73.
NLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NLY is cheaper than 70.59% of the companies in the same industry.
NLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 7.73 |
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 94.12% of the companies listed in the same industry.
NLY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NLY is cheaper than 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | 28.06 |
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.
The decent profitability rating of NLY may justify a higher PE ratio.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y5.66%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.52%, NLY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.16, NLY has a dividend in line with its industry peers.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.52% |
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
131.25% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
23.3
+0.04 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.11%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner Change-3.34%
Market Cap15.91B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target22.62 (-2.92%)
Short Float %1.92%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.52% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP131.25%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.2%
Max EPS beat(2)0.77%
EPS beat(4)4
Avg EPS beat(4)2.47%
Min EPS beat(4)0.2%
Max EPS beat(4)6.77%
EPS beat(8)6
Avg EPS beat(8)1.72%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)3.53%
Revenue beat(2)2
Avg Revenue beat(2)31.15%
Min Revenue beat(2)7.74%
Max Revenue beat(2)54.57%
Revenue beat(4)4
Avg Revenue beat(4)16.89%
Min Revenue beat(4)0.08%
Max Revenue beat(4)54.57%
Revenue beat(8)7
Avg Revenue beat(8)10.73%
Revenue beat(12)9
Avg Revenue beat(12)-2.42%
Revenue beat(16)12
Avg Revenue beat(16)26.64%
PT rev (1m)0.34%
PT rev (3m)5.46%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 7.73 | ||
| P/S | 2.48 | ||
| P/FCF | 8.02 | ||
| P/OCF | 5.57 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 28.06 |
EPS(TTM)2.9
EY12.45%
EPS(NY)3.01
Fwd EY12.94%
FCF(TTM)2.91
FCFY12.47%
OCF(TTM)4.18
OCFY17.95%
SpS9.4
BVpS21.83
TBVpS21.82
PEG (NY)0.92
PEG (5Y)N/A
Graham Number37.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9% | ||
| ROCE | 3.36% | ||
| ROIC | 0.98% | ||
| ROICexc | 1% | ||
| ROICexgc | 1% | ||
| OM | 23.66% | ||
| PM (TTM) | 20.91% | ||
| GM | 26.66% | ||
| FCFM | 30.94% |
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
ROICexgc growth 3Y-34.31%
ROICexgc 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 | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Debt/EBITDA | 68.98 | ||
| Cap/Depr | 2620.45% | ||
| Cap/Sales | 13.58% | ||
| Interest Coverage | 0.44 | ||
| Cash Conversion | 184.16% | ||
| Profit Quality | 147.99% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.71 |
F-Score6
WACC5.14%
ROIC/WACC0.19
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)9.02%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%10.61%
EPS Next Y8.73%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%75.53%
Revenue Next Year18.88%
Revenue Next 2Y13.32%
Revenue Next 3Y9.97%
Revenue Next 5YN/A
EBIT growth 1Y885.5%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.4%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y30.46%
OCF growth 3Y2.47%
OCF growth 5YN/A
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 8 / 10 to ANNALY CAPITAL MANAGEMENT IN (NLY). This can be considered as Undervalued.
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 8.03 and the Price/Book (PB) ratio is 1.07.
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.