TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
NYSE:TRTX - New York Stock Exchange, Inc. - US87266M1071 - REIT - Currency: USD
Overall TRTX gets a fundamental rating of 6 out of 10. We evaluated TRTX against 67 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. TRTX is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years TRTX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TRTX (1.43%) is better than 89.55% of its industry peers.
TRTX's Return On Equity of 5.13% is fine compared to the rest of the industry. TRTX outperforms 77.61% of its industry peers.
With an excellent Return On Invested Capital value of 5.27%, TRTX belongs to the best of the industry, outperforming 95.52% 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 1.41%.
| 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 better Profit Margin (16.75%) than 85.07% of its industry peers.
TRTX's Profit Margin has declined in the last couple of years.
TRTX's Operating Margin of 77.32% is amongst the best of the industry. TRTX outperforms 98.51% of its industry peers.
TRTX's Operating Margin has declined in the last couple of years.
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.
In the last couple of years the Gross Margin of TRTX has remained more or less at the same level.
| 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
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.
Compared to 5 years ago, TRTX has more shares outstanding
TRTX has a better debt/assets ratio than last year.
2.2 Solvency
TRTX has an Altman-Z score of 0.33. This is a bad value and indicates that TRTX is not financially healthy and even has some risk of bankruptcy.
TRTX's Altman-Z score of 0.33 is amongst the best of the industry. TRTX outperforms 85.07% of its industry peers.
The Debt to FCF ratio of TRTX is 31.44, which is on the high side as it means it would take TRTX, 31.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TRTX (31.44) is better than 79.10% of its industry peers.
A Debt/Equity ratio of 2.55 is on the high side and indicates that TRTX has dependencies on debt financing.
With a decent Debt to Equity ratio value of 2.55, TRTX is doing good in the industry, outperforming 74.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.77
WACC6.86%
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 95.52% of its industry peers.
A Quick Ratio of 8.70 indicates that TRTX has no problem at all paying its short term obligations.
The Quick ratio of TRTX (8.70) is better than 95.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 127.61% 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.
The Revenue for TRTX has decreased by -13.22% in the past year. This is quite bad
TRTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.60% yearly.
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 9.43, 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 73.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, TRTX is valued rather cheaply.
TRTX is valuated cheaply with a Price/Forward Earnings ratio of 7.67.
71.64% of the companies in the same industry are more expensive than TRTX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTX is valued cheaply inside the industry as 98.51% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRTX indicates a somewhat cheap valuation: TRTX is cheaper than 77.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 11.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)N/A
EPS Next 2Y7.37%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.86%, TRTX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.19, TRTX is paying slightly less dividend.
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
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
161.31% of the earnings are spent on dividend by TRTX. This is not a sustainable payout ratio.
DP161.31%
EPS Next 2Y7.37%
EPS Next 3Y5.97%
8.49
+0.13 (+1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75.08%
Inst Owner Change0%
Ins Owners3.14%
Ins Owner Change-1.76%
Market Cap678.01M
Analysts80
Price Target9.69 (14.13%)
Short Float %6.06%
Short Ratio6.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP161.31%
Div Incr Years1
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)0%
PT rev (3m)-5%
EPS NQ rev (1m)-5.04%
EPS NQ rev (3m)-10.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.09%
Revenue NQ rev (1m)-6.85%
Revenue NQ rev (3m)-7.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 7.67 | ||
| P/S | 2.01 | ||
| P/FCF | 7.58 | ||
| P/OCF | 7.22 | ||
| P/B | 0.61 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 11.29 |
EPS(TTM)0.9
EY10.6%
EPS(NY)1.11
Fwd EY13.04%
FCF(TTM)1.12
FCFY13.19%
OCF(TTM)1.18
OCFY13.85%
SpS4.23
BVpS13.82
TBVpS13.57
PEG (NY)2.17
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 | 0.33 |
F-Score5
WACC6.86%
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 Year37.6%
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%