TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - NYSE:TRTX - US87266M1071 - REIT
8.52 USD
-0.19 (-2.18%)
8.52 USD
0 (0%)
TRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While TRTX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TRTX. These ratings would make TRTX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TRTX was profitable.
TRTX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TRTX reported negative net income in multiple years.
Each year in the past 5 years TRTX had a positive operating cash flow.
1.2 Ratios
TRTX has a better Return On Assets (1.26%) than 86.36% of its industry peers.
TRTX's Return On Equity of 4.81% is fine compared to the rest of the industry. TRTX outperforms 77.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.82%, TRTX belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRTX is above the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.81% | ||
| ROIC | 4.82% |
ROA(3y)-0.94%
ROA(5y)-0.93%
ROE(3y)-3.95%
ROE(5y)-3.53%
ROIC(3y)5.39%
ROIC(5y)4.65%
1.3 Margins
The Profit Margin of TRTX (15.90%) is better than 86.36% of its industry peers.
TRTX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 76.27%, TRTX belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
In the last couple of years the Operating Margin of TRTX has declined.
TRTX has a better Gross Margin (91.50%) than 100.00% of its industry peers.
TRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.27% | ||
| PM (TTM) | 15.9% | ||
| GM | 91.5% |
OM growth 3Y-2.13%
OM growth 5Y-2.23%
PM growth 3Y-16.74%
PM growth 5Y-14.35%
GM growth 3Y1.36%
GM growth 5Y0.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRTX is destroying value.
The number of shares outstanding for TRTX has been increased compared to 1 year ago.
The number of shares outstanding for TRTX has been increased compared to 5 years ago.
TRTX has a better debt/assets ratio than last year.
2.2 Solvency
TRTX has an Altman-Z score of 0.24. This is a bad value and indicates that TRTX is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.24, TRTX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
TRTX has a debt to FCF ratio of 33.84. This is a negative value and a sign of low solvency as TRTX would need 33.84 years to pay back of all of its debts.
TRTX has a Debt to FCF ratio of 33.84. This is in the better half of the industry: TRTX outperforms 77.27% of its industry peers.
A Debt/Equity ratio of 2.77 is on the high side and indicates that TRTX has dependencies on debt financing.
With a decent Debt to Equity ratio value of 2.77, TRTX is doing good in the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 33.84 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.73
WACC6.64%
2.3 Liquidity
A Current Ratio of 4.38 indicates that TRTX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.38, TRTX belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
A Quick Ratio of 4.38 indicates that TRTX has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.38, TRTX belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.38 | ||
| Quick Ratio | 4.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 130.71% over the past year.
TRTX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.01% yearly.
Looking at the last year, TRTX shows a very negative growth in Revenue. The Revenue has decreased by -12.32% in the last year.
Measured over the past years, TRTX shows a small growth in Revenue. The Revenue has been growing by 0.60% on average per year.
EPS 1Y (TTM)130.71%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-12.32%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-8.66%
3.2 Future
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
TRTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.68% yearly.
EPS Next Y5.19%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y4.64%
Revenue Next 3Y2.68%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TRTX is valuated reasonably with a Price/Earnings ratio of 9.91.
71.21% of the companies in the same industry are more expensive than TRTX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.31, TRTX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of TRTX can be described as very cheap.
TRTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTX is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TRTX is valued cheaper than 80.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRTX does not grow enough to justify the current Price/Earnings ratio.
TRTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)N/A
EPS Next 2Y8.4%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.96%, TRTX is a good candidate for dividend investing.
TRTX's Dividend Yield is slightly below the industry average, which is at 12.06.
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
5.2 History
The dividend of TRTX decreases each year by -8.14%.
TRTX has been paying a dividend for over 5 years, so it has already some track record.
TRTX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-8.14%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
TRTX pays out 175.50% of its income as dividend. This is not a sustainable payout ratio.
DP175.5%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
8.52
-0.19 (-2.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75.74%
Inst Owner Change-0.06%
Ins Owners2.28%
Ins Owner Change-1.76%
Market Cap669.59M
Analysts78.18
Price Target10.2 (19.72%)
Short Float %6.25%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP175.5%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.63%
Min EPS beat(2)-7.36%
Max EPS beat(2)4.11%
EPS beat(4)2
Avg EPS beat(4)-16.46%
Min EPS beat(4)-63%
Max EPS beat(4)4.11%
EPS beat(8)4
Avg EPS beat(8)-205.81%
EPS beat(12)5
Avg EPS beat(12)-153.11%
EPS beat(16)6
Avg EPS beat(16)-118.29%
Revenue beat(2)1
Avg Revenue beat(2)2.18%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)6.71%
Revenue beat(4)2
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-15.5%
Max Revenue beat(4)6.99%
Revenue beat(8)3
Avg Revenue beat(8)-4.94%
Revenue beat(12)5
Avg Revenue beat(12)18.39%
Revenue beat(16)9
Avg Revenue beat(16)30.6%
PT rev (1m)0%
PT rev (3m)5.26%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)2.44%
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 7.55 | ||
| P/S | 2.03 | ||
| P/FCF | 7.49 | ||
| P/OCF | 7.19 | ||
| P/B | 0.61 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)0.86
EY10.09%
EPS(NY)1.13
Fwd EY13.24%
FCF(TTM)1.14
FCFY13.34%
OCF(TTM)1.18
OCFY13.9%
SpS4.19
BVpS13.88
TBVpS13.68
PEG (NY)1.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.81% | ||
| ROCE | 6.11% | ||
| ROIC | 4.82% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 5.07% | ||
| OM | 76.27% | ||
| PM (TTM) | 15.9% | ||
| GM | 91.5% | ||
| FCFM | 27.1% |
ROA(3y)-0.94%
ROA(5y)-0.93%
ROE(3y)-3.95%
ROE(5y)-3.53%
ROIC(3y)5.39%
ROIC(5y)4.65%
ROICexc(3y)5.67%
ROICexc(5y)4.9%
ROICexgc(3y)5.74%
ROICexgc(5y)4.97%
ROCE(3y)6.82%
ROCE(5y)5.88%
ROICexcg growth 3Y24.39%
ROICexcg growth 5Y8.93%
ROICexc growth 3Y24.45%
ROICexc growth 5Y8.68%
OM growth 3Y-2.13%
OM growth 5Y-2.23%
PM growth 3Y-16.74%
PM growth 5Y-14.35%
GM growth 3Y1.36%
GM growth 5Y0.46%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 33.84 | ||
| Debt/EBITDA | 11.35 | ||
| Cap/Depr | 24.83% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 34.93% | ||
| Profit Quality | 170.42% | ||
| Current Ratio | 4.38 | ||
| Quick Ratio | 4.38 | ||
| Altman-Z | 0.24 |
F-Score4
WACC6.64%
ROIC/WACC0.73
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)1.52%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)130.71%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-14.29%
EPS Next Y5.19%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.32%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-8.66%
Revenue Next Year3.11%
Revenue Next 2Y4.64%
Revenue Next 3Y2.68%
Revenue Next 5YN/A
EBIT growth 1Y-19.49%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year39.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.22%
FCF growth 3Y-6.86%
FCF growth 5Y-2.58%
OCF growth 1Y40.58%
OCF growth 3Y-5.34%
OCF growth 5Y-1.62%