TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
NYSE:TRTX - New York Stock Exchange, Inc. - US87266M1071 - REIT - Currency: USD
TRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX has an excellent profitability rating, but there are some minor concerns on its financial health. TRTX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TRTX was profitable.
In the past year TRTX had a positive cash flow from operations.
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
The Return On Assets of TRTX (1.43%) is better than 89.23% of its industry peers.
With a decent Return On Equity value of 5.13%, TRTX is doing good in the industry, outperforming 78.46% of the companies in the same industry.
TRTX's Return On Invested Capital of 5.27% is amongst the best of the industry. TRTX outperforms 95.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRTX is above the industry average of 1.42%.
| 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
Looking at the Profit Margin, with a value of 16.75%, TRTX belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
TRTX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 77.32%, TRTX belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
TRTX's Operating Margin has declined in the last couple of years.
TRTX has a better Gross Margin (91.75%) 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 | 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.
Compared to 1 year ago, TRTX has more shares outstanding
The number of shares outstanding for TRTX has been increased compared to 5 years ago.
Compared to 1 year ago, TRTX has an improved debt to assets ratio.
2.2 Solvency
TRTX has an Altman-Z score of 0.32. 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 0.32, TRTX belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 31.44, TRTX is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
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 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.71
WACC7.41%
2.3 Liquidity
TRTX has a Current Ratio of 8.70. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 8.70, TRTX belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
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.
TRTX has a Quick ratio of 8.70. This is amongst the best in the industry. TRTX outperforms 95.38% 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.
Measured over the past years, TRTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.01% on average per year.
Looking at the last year, TRTX shows a very negative growth in Revenue. The Revenue has decreased by -13.22% in the last year.
The Revenue has been growing slightly by 0.60% on average over the past years.
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.
The Revenue is expected to grow by 0.34% on average over the next years.
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
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.
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
A Price/Earnings ratio of 8.85 indicates a reasonable valuation of TRTX.
Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than 73.85% of the companies in the same industry.
TRTX is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.20, the valuation of TRTX can be described as very cheap.
Based on the Price/Forward Earnings ratio, TRTX is valued a bit cheaper than 75.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.46, TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRTX indicates a rather cheap valuation: TRTX is cheaper than 98.46% of the companies listed in the same industry.
TRTX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| 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.
The decent profitability rating of TRTX 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
TRTX has a Yearly Dividend Yield of 8.70%, which is a nice return.
Compared to an average industry Dividend Yield of 11.74, TRTX's dividend is way lower than its industry peers. On top of this 83.08% of the companies listed in the same industry pay a better dividend than TRTX!
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.7% |
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%
NYSE:TRTX (6/25/2025, 12:18:10 PM)
7.965
-0.02 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75.08%
Inst Owner Change-1.81%
Ins Owners3.14%
Ins Owner Change4.62%
Market Cap636.08M
Analysts80
Price Target9.69 (21.66%)
Short Float %4.91%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.7% |
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)0%
EPS NQ rev (3m)-6.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 7.2 | ||
| P/S | 1.88 | ||
| P/FCF | 7.11 | ||
| P/OCF | 6.77 | ||
| P/B | 0.58 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 11.14 |
EPS(TTM)0.9
EY11.3%
EPS(NY)1.11
Fwd EY13.89%
FCF(TTM)1.12
FCFY14.06%
OCF(TTM)1.18
OCFY14.76%
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
WACC7.41%
ROIC/WACC0.71
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%