ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLY - US0357108390 - REIT
22.67 USD
+0.23 (+1.02%)
22.79 USD
+0.12 (+0.53%)
Overall NLY gets a fundamental rating of 5 out of 10. We evaluated NLY against 68 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on NLY.
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.
In the past 5 years NLY always reported a positive cash flow from operatings.
1.2 Ratios
NLY has a Return On Assets of 1.07%. This is amongst the best in the industry. NLY outperforms 85.29% of its industry peers.
Looking at the Return On Equity, with a value of 9.00%, NLY belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.98%, NLY is in the better half of the industry, outperforming 79.41% 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
NLY has a better Profit Margin (20.91%) than 88.24% of its industry peers.
NLY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 23.66%, NLY belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
NLY's Operating Margin has declined in the last couple of years.
NLY has a Gross Margin (26.66%) which is comparable to the rest of the industry.
NLY's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NLY is destroying value.
Compared to 1 year ago, NLY has more shares outstanding
Compared to 5 years ago, NLY has more shares outstanding
Compared to 1 year ago, NLY has a worse debt to assets ratio.
2.2 Solvency
NLY has an Altman-Z score of -0.72. 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 -0.72 is on the low side compared to the rest of the industry. NLY is outperformed by 75.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 53.91, NLY is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
NLY has a Debt/Equity ratio of 7.18. This is a high value indicating a heavy dependency on external financing.
NLY's Debt to Equity ratio of 7.18 is in line compared to the rest of the industry. NLY outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.72 |
ROIC/WACC0.19
WACC5.11%
2.3 Liquidity
A Current Ratio of 0.04 indicates that NLY may have some problems paying its short term obligations.
NLY has a worse Current ratio (0.04) than 83.82% of its industry peers.
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.
The Quick ratio of NLY (0.04) is worse than 83.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
NLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.02%, which is quite good.
NLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.74% yearly.
NLY shows a strong growth in Revenue. In the last year, 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%75.53%
3.2 Future
NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.22% yearly.
The Revenue is expected to grow by 9.97% on average over the next years. This is quite good.
EPS Next Y8.61%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue Next Year18.05%
Revenue Next 2Y11.7%
Revenue Next 3Y9.97%
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 7.82, the valuation of NLY can be described as very cheap.
Based on the Price/Earnings ratio, NLY is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. NLY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.65 indicates a rather cheap valuation of NLY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NLY indicates a somewhat cheap valuation: NLY is cheaper than 73.53% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. NLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NLY is valued cheaply inside the industry as 86.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 27.2 |
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.
NLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y4.75%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.95%, NLY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.91, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.95% |
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
NLY pays out 131.25% of its income as dividend. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
22.67
+0.23 (+1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.55%
Inst Owner Change14.26%
Ins Owners0.1%
Ins Owner Change-3.34%
Market Cap14.56B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target22.54 (-0.57%)
Short Float %1.74%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.95% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP131.25%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)5.1%
PT rev (3m)5.62%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)5.92%
Revenue NQ rev (3m)7.45%
Revenue NY rev (1m)1.72%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.65 | ||
| P/S | 2.27 | ||
| P/FCF | 7.33 | ||
| P/OCF | 5.09 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 27.2 |
EPS(TTM)2.9
EY12.79%
EPS(NY)2.96
Fwd EY13.07%
FCF(TTM)3.09
FCFY13.64%
OCF(TTM)4.45
OCFY19.63%
SpS9.99
BVpS23.22
TBVpS23.21
PEG (NY)0.91
PEG (5Y)N/A
Graham Number38.93
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 | -0.72 |
F-Score6
WACC5.11%
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 Y8.61%
EPS Next 2Y4.75%
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 Year18.05%
Revenue Next 2Y11.7%
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 for 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.
Can you provide the PE and PB ratios for NLY stock?
The Price/Earnings (PE) ratio for ANNALY CAPITAL MANAGEMENT IN (NLY) is 7.82 and the Price/Book (PB) ratio is 0.98.
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 8.61% in the next year.