TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - NYSE:TRTX - US87266M1071 - REIT
9.44 USD
+0.01 (+0.11%)
9.44 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TRTX. TRTX was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX scores excellent on profitability, but 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
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 1.26%, TRTX belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
TRTX has a Return On Equity of 4.81%. This is in the better half of the industry: TRTX outperforms 77.61% of its industry peers.
TRTX has a better Return On Invested Capital (4.82%) than 95.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
TRTX has a Profit Margin of 15.90%. This is amongst the best in the industry. TRTX outperforms 86.57% of its industry peers.
TRTX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 76.27%, TRTX belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
In the last couple of years the Operating Margin of TRTX has declined.
With an excellent Gross Margin value of 91.50%, 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 | 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
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.
TRTX has more shares outstanding than it did 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 0.25, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.25, TRTX belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
The Debt to FCF ratio of TRTX is 33.84, which is on the high side as it means it would take TRTX, 33.84 years of fcf income to pay off all of its debts.
TRTX's Debt to FCF ratio of 33.84 is fine compared to the rest of the industry. TRTX outperforms 77.61% of its industry peers.
TRTX has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TRTX (2.77) is better than 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 33.84 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.71
WACC6.84%
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 95.52% of the companies in the same industry.
TRTX has a Quick Ratio of 4.38. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
TRTX has a better Quick ratio (4.38) than 95.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.38 | ||
| Quick Ratio | 4.38 |
3. Growth
3.1 Past
TRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 130.71%, 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.
The Revenue for TRTX has decreased by -12.32% in the past year. This is quite bad
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
Based on estimates for the next years, TRTX will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
Based on estimates for the next years, TRTX will show a small growth in Revenue. The Revenue will grow by 2.68% on average per year.
EPS Next Y5.19%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year2.88%
Revenue Next 2Y4.81%
Revenue Next 3Y2.68%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.98, the valuation of TRTX can be described as reasonable.
71.64% of the companies in the same industry are more expensive than TRTX, based on the Price/Earnings ratio.
TRTX is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.37, which indicates a very decent valuation of TRTX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRTX indicates a somewhat cheap valuation: TRTX is cheaper than 65.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. TRTX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTX is valued cheaper than 97.01% of the companies in the same industry.
82.09% of the companies in the same industry are more expensive than TRTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.3 | ||
| EV/EBITDA | 13.51 |
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)2.12
PEG (5Y)N/A
EPS Next 2Y8.4%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
TRTX has a Yearly Dividend Yield of 8.61%, which is a nice return.
With a Dividend Yield of 8.61, TRTX pays less dividend than the industry average, which is at 11.44. 85.07% of the companies listed in the same industry pay a better dividend than TRTX!
Compared to an average S&P500 Dividend Yield of 2.41, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.61% |
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
175.50% of the earnings are spent on dividend by TRTX. This is not a sustainable payout ratio.
DP175.5%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
9.44
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner Change-1.9%
Ins Owners2.83%
Ins Owner Change-1.76%
Market Cap741.89M
Analysts80
Price Target10.2 (8.05%)
Short Float %6.79%
Short Ratio7.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.61% |
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)0%
EPS NQ rev (3m)4.07%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)5.33%
Revenue NQ rev (3m)5.89%
Revenue NY rev (1m)2.01%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 8.37 | ||
| P/S | 2.25 | ||
| P/FCF | 8.3 | ||
| P/OCF | 7.97 | ||
| P/B | 0.68 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 13.51 |
EPS(TTM)0.86
EY9.11%
EPS(NY)1.13
Fwd EY11.95%
FCF(TTM)1.14
FCFY12.04%
OCF(TTM)1.18
OCFY12.54%
SpS4.19
BVpS13.88
TBVpS13.68
PEG (NY)2.12
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 | 0.25 |
F-Score4
WACC6.84%
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)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 Year2.88%
Revenue Next 2Y4.81%
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%