NEW RESIDENTIAL INVESTMENT (NRZ) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NRZ • US64828T2015

10.89 USD
-0.02 (-0.18%)
At close: Aug 1, 2022
10.9 USD
+0.01 (+0.09%)
After Hours: 8/1/2022, 8:22:09 PM
Fundamental Rating

2

NRZ gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of NRZ have multiple concerns. While showing a medium growth rate, NRZ is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • NRZ had positive earnings in the past year.
NRZ Yearly Net Income VS EBIT VS OCF VS FCFNRZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 1B -1B 2B

1.2 Ratios

Industry RankSector Rank
ROA 3.03%
ROE 14.99%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
NRZ Yearly ROA, ROE, ROICNRZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 10 -10 20 -20

1.3 Margins

Industry RankSector Rank
OM 36.91%
PM (TTM) 21.33%
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
NRZ Yearly Profit, Operating, Gross MarginsNRZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 -100 -200

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0

2. Health

2.1 Basic Checks

  • NRZ does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • NRZ has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for NRZ has been reduced compared to a year ago.
NRZ Yearly Shares OutstandingNRZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M
NRZ Yearly Total Debt VS Total AssetsNRZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 10B 20B 30B 40B

2.2 Solvency

  • NRZ has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC3.42%
NRZ Yearly LT Debt VS Equity VS FCFNRZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

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5

3. Growth

3.1 Past

  • NRZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.75%, which is quite good.
  • NRZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.98% yearly.
  • NRZ shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.30%.
  • Measured over the past years, NRZ shows a very strong growth in Revenue. The Revenue has been growing by 22.92% on average per year.
EPS 1Y (TTM)18.75%
EPS 3Y-14.33%
EPS 5Y-6.98%
EPS Q2Q%0%
Revenue 1Y (TTM)33.3%
Revenue growth 3Y16.4%
Revenue growth 5Y22.92%
Sales Q2Q%-20.18%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.37% on average over the next years. This is quite good.
  • The Revenue is expected to decrease by -1.61% on average over the next years.
EPS Next Y-0.27%
EPS Next 2Y4.29%
EPS Next 3Y7.05%
EPS Next 5Y8.37%
Revenue Next Year10.11%
Revenue Next 2Y14.85%
Revenue Next 3Y-0.51%
Revenue Next 5Y-1.61%

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.
NRZ Yearly Revenue VS EstimatesNRZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
NRZ Yearly EPS VS EstimatesNRZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 7.16, the valuation of NRZ can be described as very cheap.
  • Compared to an average S&P500 Price/Earnings ratio of 28.32, NRZ is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.72, the valuation of NRZ can be described as very cheap.
  • NRZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
Industry RankSector Rank
PE 7.16
Fwd PE 6.72
NRZ Price Earnings VS Forward Price EarningsNRZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.37
NRZ Per share dataNRZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.29%
EPS Next 3Y7.05%

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5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 9.81%, NRZ is a good candidate for dividend investing.
  • NRZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 9.81%

5.2 History

  • The dividend of NRZ decreases each year by -24.82%.
  • NRZ has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-24.82%
Div Incr YearsN/A
Div Non Decr YearsN/A
NRZ Yearly Dividends per shareNRZ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 0.5 1 1.5

5.3 Sustainability

  • 23.27% of the earnings are spent on dividend by NRZ. This is a low number and sustainable payout ratio.
DP23.27%
EPS Next 2Y4.29%
EPS Next 3Y7.05%
NRZ Yearly Income VS Free CF VS DividendNRZ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 1B -1B 2B
NRZ Dividend Payout.NRZ Dividend Payout, showing the Payout Ratio.NRZ Dividend Payout.PayoutRetained Earnings

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NEW RESIDENTIAL INVESTMENT / NRZ FAQ

Can you provide the ChartMill fundamental rating for NEW RESIDENTIAL INVESTMENT?

ChartMill assigns a fundamental rating of 5 / 10 to NRZ.


What is the valuation status for NRZ stock?

ChartMill assigns a valuation rating of 7 / 10 to NEW RESIDENTIAL INVESTMENT (NRZ). This can be considered as Undervalued.


Can you provide the profitability details for NEW RESIDENTIAL INVESTMENT?

NEW RESIDENTIAL INVESTMENT (NRZ) has a profitability rating of 6 / 10.


What are the PE and PB ratios of NEW RESIDENTIAL INVESTMENT (NRZ) stock?

The Price/Earnings (PE) ratio for NEW RESIDENTIAL INVESTMENT (NRZ) is 7.16 and the Price/Book (PB) ratio is 0.73.


What is the earnings growth outlook for NEW RESIDENTIAL INVESTMENT?

The Earnings per Share (EPS) of NEW RESIDENTIAL INVESTMENT (NRZ) is expected to decline by -0.27% in the next year.