TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
NYSE:TRTX - New York Stock Exchange, Inc. - US87266M1071 - REIT - Currency: USD
Taking everything into account, TRTX scores 6 out of 10 in our fundamental rating. TRTX was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX has an average financial health and profitability rating. TRTX is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TRTX very considerable for value investing!
1. Profitability
1.1 Basic Checks
TRTX had positive earnings in the past year.
TRTX had a positive operating cash flow in the past year.
In multiple years TRTX reported negative net income over the last 5 years.
In the past 5 years TRTX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.43%, TRTX belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Return On Equity of TRTX (5.13%) is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 5.27%, TRTX belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRTX is above the industry average of 1.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.13% | ||
| ROIC | 5.27% |
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
TRTX has a Profit Margin of 16.75%. This is in the better half of the industry: TRTX outperforms 73.85% of its industry peers.
In the last couple of years the Profit Margin of TRTX has declined.
TRTX has a better Operating Margin (77.32%) than 98.46% of its industry peers.
In the last couple of years the Operating Margin of TRTX has declined.
With an excellent Gross Margin value of 91.75%, TRTX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.32% | ||
| PM (TTM) | 16.75% | ||
| GM | 91.75% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRTX is destroying value.
TRTX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TRTX has been increased compared to 5 years ago.
The debt/assets ratio for TRTX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.32, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TRTX (0.32) is better than 83.08% of its industry peers.
TRTX has a debt to FCF ratio of 31.44. This is a negative value and a sign of low solvency as TRTX would need 31.44 years to pay back of all of its debts.
TRTX has a Debt to FCF ratio of 31.44. This is in the better half of the industry: TRTX outperforms 70.77% of its industry peers.
TRTX has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 2.55, TRTX is doing good in the industry, outperforming 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.77
WACC6.85%
2.3 Liquidity
A Current Ratio of 8.70 indicates that TRTX has no problem at all paying its short term obligations.
TRTX has a Current ratio of 8.70. This is amongst the best in the industry. TRTX outperforms 93.85% of its industry peers.
TRTX has a Quick Ratio of 8.70. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TRTX (8.70) is better than 93.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
TRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.61%, which is quite impressive.
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 -13.22% 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)127.61%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-20%
Revenue 1Y (TTM)-13.22%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-7.09%
3.2 Future
Based on estimates for the next years, TRTX will show a small growth in Earnings Per Share. The EPS will grow by 5.97% on average per year.
TRTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.34% yearly.
EPS Next Y4.34%
EPS Next 2Y7.37%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y7.25%
Revenue Next 3Y0.34%
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
The Price/Earnings ratio is 8.87, which indicates a very decent valuation of TRTX.
TRTX's Price/Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 73.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRTX to the average of the S&P500 Index (26.68), we can say TRTX is valued rather cheaply.
TRTX is valuated cheaply with a Price/Forward Earnings ratio of 7.21.
83.08% of the companies in the same industry are more expensive than TRTX, based on the Price/Forward Earnings ratio.
TRTX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTX is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TRTX is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.12 | ||
| EV/EBITDA | 11.14 |
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)2.04
PEG (5Y)N/A
EPS Next 2Y7.37%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.05%, TRTX is a good candidate for dividend investing.
TRTX's Dividend Yield is comparable with the industry average which is at 13.67.
Compared to an average S&P500 Dividend Yield of 2.36, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.05% |
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 Years0
Div Non Decr Years3
5.3 Sustainability
TRTX pays out 161.31% of its income as dividend. This is not a sustainable payout ratio.
DP161.31%
EPS Next 2Y7.37%
EPS Next 3Y5.97%
7.98
+0.01 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change-0.94%
Ins Owners3.66%
Ins Owner Change4.62%
Market Cap637.28M
Analysts80
Price Target9.69 (21.43%)
Short Float %4.16%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.05% |
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP161.31%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.18%
Min EPS beat(2)-63%
Max EPS beat(2)-7.36%
EPS beat(4)2
Avg EPS beat(4)-14.85%
Min EPS beat(4)-63%
Max EPS beat(4)10.54%
EPS beat(8)3
Avg EPS beat(8)-229.27%
EPS beat(12)4
Avg EPS beat(12)-155.05%
EPS beat(16)6
Avg EPS beat(16)-118.25%
Revenue beat(2)0
Avg Revenue beat(2)-8.92%
Min Revenue beat(2)-15.5%
Max Revenue beat(2)-2.35%
Revenue beat(4)1
Avg Revenue beat(4)-4.59%
Min Revenue beat(4)-15.5%
Max Revenue beat(4)6.99%
Revenue beat(8)2
Avg Revenue beat(8)-5.86%
Revenue beat(12)5
Avg Revenue beat(12)25.13%
Revenue beat(16)9
Avg Revenue beat(16)34.22%
PT rev (1m)-5%
PT rev (3m)-5%
EPS NQ rev (1m)-6.05%
EPS NQ rev (3m)-12.93%
EPS NY rev (1m)-3.09%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-11.9%
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)5.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.21 | ||
| P/S | 1.89 | ||
| P/FCF | 7.12 | ||
| P/OCF | 6.79 | ||
| P/B | 0.58 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 11.14 |
EPS(TTM)0.9
EY11.28%
EPS(NY)1.11
Fwd EY13.87%
FCF(TTM)1.12
FCFY14.04%
OCF(TTM)1.18
OCFY14.73%
SpS4.23
BVpS13.82
TBVpS13.57
PEG (NY)2.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.13% | ||
| ROCE | 6.67% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.81% | ||
| ROICexgc | 5.87% | ||
| OM | 77.32% | ||
| PM (TTM) | 16.75% | ||
| GM | 91.75% | ||
| FCFM | 26.48% |
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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 31.44 | ||
| Debt/EBITDA | 10.15 | ||
| Cap/Depr | 28.22% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 33.9% | ||
| Profit Quality | 158.13% | ||
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 | ||
| Altman-Z | 0.32 |
F-Score5
WACC6.85%
ROIC/WACC0.77
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)127.61%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-20%
EPS Next Y4.34%
EPS Next 2Y7.37%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.22%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-7.09%
Revenue Next Year5.33%
Revenue Next 2Y7.25%
Revenue Next 3Y0.34%
Revenue Next 5YN/A
EBIT growth 1Y-21.31%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year44.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3.65%
FCF growth 3Y-6.86%
FCF growth 5Y-2.58%
OCF growth 1Y2.73%
OCF growth 3Y-5.34%
OCF growth 5Y-1.62%