ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
21.3 USD
+0.13 (+0.61%)
21.2639 USD
-0.04 (-0.17%)
We assign a fundamental rating of 4 out of 10 to NLY. NLY was compared to 68 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 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.
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.
NLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.51%, NLY is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
The Return On Equity of NLY (4.30%) is better than 72.06% of its industry peers.
With a decent Return On Invested Capital value of 0.55%, NLY is doing good in the industry, outperforming 66.18% 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
Looking at the Profit Margin, with a value of 10.25%, NLY is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
NLY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 13.53%, NLY is doing good in the industry, outperforming 69.12% 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 48.53% of its industry peers.
In the last couple of years the Gross Margin of NLY has declined.
| 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.
NLY has more shares outstanding than it did 1 year ago.
NLY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NLY has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.74, we must say that NLY is in the distress zone and 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 75.00% 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.
NLY has a Debt to FCF ratio of 188.60. This is in the lower half of the industry: NLY underperforms 64.71% of its industry peers.
A Debt/Equity ratio of 7.16 is on the high side and indicates that NLY has dependencies on debt financing.
NLY has a worse Debt to Equity ratio (7.16) than 66.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Altman-Z | -0.74 |
ROIC/WACC0.11
WACC5.1%
2.3 Liquidity
A Current Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.06, NLY is doing worse than 76.47% of the companies in the same industry.
A Quick Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
NLY's Quick ratio of 0.06 is on the low side compared to the rest of the industry. NLY is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.02% 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.
Looking at the last year, NLY shows a very strong growth in Revenue. The Revenue has grown by 32.20%.
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%24.66%
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 3.34% on average per year.
NLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
EPS Next Y8.36%
EPS Next 2Y5.66%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue Next Year16.05%
Revenue Next 2Y9.07%
Revenue Next 3Y3.16%
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
Based on the Price/Earnings ratio of 7.34, the valuation of NLY can be described as very cheap.
Based on the Price/Earnings ratio, NLY is valued cheaply inside the industry as 85.29% of the companies are valued more expensively.
NLY is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.07 indicates a rather cheap valuation of NLY.
Based on the Price/Forward Earnings ratio, NLY is valued cheaply inside the industry as 80.88% of the companies are valued more expensively.
NLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaper than 89.71% of the companies in the same industry.
NLY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.94 | ||
| EV/EBITDA | 48.29 |
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)0.88
PEG (5Y)N/A
EPS Next 2Y5.66%
EPS Next 3Y3.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.50%, NLY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.83, NLY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, NLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.5% |
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
285.38% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP285.38%
EPS Next 2Y5.66%
EPS Next 3Y3.34%
21.3
+0.13 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.55%
Inst Owner Change-1.91%
Ins Owners0.1%
Ins Owner Change-4.05%
Market Cap13.68B
Revenue(TTM)6.42B
Net Income(TTM)575.07M
Analysts77.78
Price Target22.21 (4.27%)
Short Float %1.54%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.5% |
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)3.56%
PT rev (3m)5.31%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 7.07 | ||
| P/S | 2.44 | ||
| P/FCF | 26.94 | ||
| P/OCF | 11.79 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 48.29 |
EPS(TTM)2.9
EY13.62%
EPS(NY)3.01
Fwd EY14.15%
FCF(TTM)0.79
FCFY3.71%
OCF(TTM)1.81
OCFY8.48%
SpS8.74
BVpS20.84
TBVpS20.83
PEG (NY)0.88
PEG (5Y)N/A
Graham Number36.88
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
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-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
WACC5.1%
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)9.02%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%10.61%
EPS Next Y8.36%
EPS Next 2Y5.66%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%24.66%
Revenue Next Year16.05%
Revenue Next 2Y9.07%
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
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 4 / 10 to NLY.
What is the valuation status for NLY stock?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
Can you provide the PE and PB ratios for NLY stock?
The Price/Earnings (PE) ratio for ANNALY CAPITAL MANAGEMENT IN (NLY) is 7.34 and the Price/Book (PB) ratio is 1.02.
What is the earnings growth outlook for ANNALY CAPITAL MANAGEMENT IN?
The Earnings per Share (EPS) of ANNALY CAPITAL MANAGEMENT IN (NLY) is expected to grow by 8.36% in the next year.