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TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis

NYSE:TRTX - New York Stock Exchange, Inc. - US87266M1071 - REIT - Currency: USD

8.49  +0.13 (+1.56%)

After market: 8.4999 +0.01 (+0.12%)

Fundamental Rating

6

TRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. TRTX is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

TRTX had positive earnings in the past year.
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.
TRTX Yearly Net Income VS EBIT VS OCF VS FCFTRTX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

With an excellent Return On Assets value of 1.43%, TRTX belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
TRTX has a Return On Equity of 5.13%. This is in the better half of the industry: TRTX outperforms 77.61% of its industry peers.
TRTX has a Return On Invested Capital of 5.27%. This is amongst the best in the industry. TRTX outperforms 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 1.41%.
Industry RankSector 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%
TRTX Yearly ROA, ROE, ROICTRTX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10

1.3 Margins

TRTX has a better Profit Margin (16.75%) than 85.07% of its industry peers.
In the last couple of years the Profit Margin of TRTX has declined.
TRTX has a Operating Margin of 77.32%. This is amongst the best in the industry. TRTX outperforms 98.51% of its industry peers.
In the last couple of years the Operating Margin of TRTX has declined.
TRTX's Gross Margin of 91.75% is amongst the best of the industry. TRTX outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of TRTX has remained more or less at the same level.
Industry RankSector 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%
TRTX Yearly Profit, Operating, Gross MarginsTRTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
TRTX Yearly Shares OutstandingTRTX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
TRTX Yearly Total Debt VS Total AssetsTRTX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 0.33, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
TRTX has a Altman-Z score of 0.33. This is amongst the best in the industry. TRTX outperforms 85.07% 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 better Debt to FCF ratio (31.44) 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.
TRTX has a better Debt to Equity ratio (2.55) than 74.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.55
Debt/FCF 31.44
Altman-Z 0.33
ROIC/WACC0.77
WACC6.87%
TRTX Yearly LT Debt VS Equity VS FCFTRTX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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.
The Current ratio of TRTX (8.70) is better than 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.
TRTX's Quick ratio of 8.70 is amongst the best of the industry. TRTX outperforms 95.52% of its industry peers.
Industry RankSector Rank
Current Ratio 8.7
Quick Ratio 8.7
TRTX Yearly Current Assets VS Current LiabilitesTRTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

4

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.
TRTX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.22%.
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

The Earnings Per Share is expected to grow by 5.97% on average over the next years.
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.
TRTX Yearly Revenue VS EstimatesTRTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M
TRTX Yearly EPS VS EstimatesTRTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 -2 -3

6

4. Valuation

4.1 Price/Earnings Ratio

TRTX is valuated reasonably with a Price/Earnings ratio of 9.43.
Compared to the rest of the industry, the Price/Earnings ratio of TRTX indicates a somewhat cheap valuation: TRTX is cheaper than 74.63% of the companies listed in the same industry.
TRTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.04.
With a Price/Forward Earnings ratio of 7.67, the valuation of TRTX can be described as very cheap.
Based on the Price/Forward Earnings ratio, TRTX is valued a bit cheaper than the industry average as 73.13% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TRTX to the average of the S&P500 Index (37.64), we can say TRTX is valued rather cheaply.
Industry RankSector Rank
PE 9.43
Fwd PE 7.67
TRTX Price Earnings VS Forward Price EarningsTRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

98.51% of the companies in the same industry are more expensive than TRTX, based on the Enterprise Value to EBITDA ratio.
TRTX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 77.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.58
EV/EBITDA 11.25
TRTX Per share dataTRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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)2.17
PEG (5Y)N/A
EPS Next 2Y7.37%
EPS Next 3Y5.97%

4

5. Dividend

5.1 Amount

TRTX has a Yearly Dividend Yield of 8.88%, which is a nice return.
TRTX's Dividend Yield is slightly below the industry average, which is at 11.09.
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 8.88%

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
TRTX Yearly Dividends per shareTRTX Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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%
TRTX Yearly Income VS Free CF VS DividendTRTX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M
TRTX Dividend Payout.TRTX Dividend Payout, showing the Payout Ratio.TRTX Dividend Payout.PayoutRetained Earnings

TPG RE FINANCE TRUST INC

NYSE:TRTX (7/25/2025, 8:04:00 PM)

After market: 8.4999 +0.01 (+0.12%)

8.49

+0.13 (+1.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-29 2025-07-29/amc
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 RankSector Rank
Dividend Yield 8.88%
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP161.31%
Div Incr Years1
Div Non Decr Years3
Ex-Date06-27 2025-06-27 (0.24)
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)-3.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.65%
Valuation
Industry RankSector 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 11.25
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 RankSector 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 RankSector 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
WACC6.87%
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%