TPG RE FINANCE TRUST INC (TRTX)
US87266M1071 - REIT
Overall TRTX gets a fundamental rating of 5 out of 10. We evaluated TRTX against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of TRTX get a neutral evaluation. Nothing too spectacular is happening here. TRTX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TRTX had negative 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.
TRTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -3.18%, TRTX is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
TRTX's Return On Equity of -10.85% is on the low side compared to the rest of the industry. TRTX is outperformed by 93.75% of its industry peers.
TRTX has a Return On Invested Capital of 6.94%. This is amongst the best in the industry. TRTX outperforms 95.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRTX is above the industry average of 1.57%.
The 3 year average ROIC (4.44%) for TRTX is below the current ROIC(6.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.18% | ||
| ROE | -10.85% | ||
| ROIC | 6.94% |
ROA(3y)-1.03%
ROA(5y)-0.82%
ROE(3y)-4.13%
ROE(5y)-2.93%
ROIC(3y)4.44%
ROIC(5y)4.27%
1.3 Margins
TRTX has a Operating Margin of 85.27%. This is amongst the best in the industry. TRTX outperforms 100.00% of its industry peers.
TRTX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 92.39%, TRTX belongs to the top 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 | 85.27% | ||
| PM (TTM) | N/A | ||
| GM | 92.39% |
OM growth 3Y0.54%
OM growth 5Y-0.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.15%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
TRTX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRTX has more shares outstanding
Compared to 5 years ago, TRTX has more shares outstanding
Compared to 1 year ago, TRTX has an improved debt to assets ratio.
2.2 Solvency
TRTX has an Altman-Z score of 0.38. This is a bad value and indicates that TRTX is not financially healthy and even has some risk of bankruptcy.
TRTX has a Altman-Z score of 0.38. This is in the better half of the industry: TRTX outperforms 78.13% of its industry peers.
TRTX has a debt to FCF ratio of 30.46. This is a negative value and a sign of low solvency as TRTX would need 30.46 years to pay back of all of its debts.
TRTX has a Debt to FCF ratio of 30.46. This is in the better half of the industry: TRTX outperforms 64.06% of its industry peers.
TRTX has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.37, TRTX is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 30.46 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.93
WACC7.43%
2.3 Liquidity
TRTX has a Current Ratio of 4.79. 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 4.79, TRTX belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
TRTX has a Quick Ratio of 4.79. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
TRTX's Quick ratio of 4.79 is amongst the best of the industry. TRTX outperforms 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.79 | ||
| Quick Ratio | 4.79 |
3. Growth
3.1 Past
TRTX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -450.54%.
The Revenue has grown by 14.50% in the past year. This is quite good.
Measured over the past years, TRTX shows a small growth in Revenue. The Revenue has been growing by 7.89% on average per year.
EPS 1Y (TTM)-450.54%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q76.47%
Revenue 1Y (TTM)14.5%
Revenue growth 3Y11.15%
Revenue growth 5Y7.89%
Revenue growth Q2Q79.1%
3.2 Future
Based on estimates for the next years, TRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 31.57% on average per year.
Based on estimates for the next years, TRTX will show a quite strong growth in Revenue. The Revenue will grow by 8.34% on average per year.
EPS Next Y116.7%
EPS Next 2Y51.32%
EPS Next 3Y31.57%
EPS Next 5YN/A
Revenue Next Year14.66%
Revenue Next 2Y6.06%
Revenue Next 3Y8.34%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TRTX. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 9.03, the valuation of TRTX can be described as reasonable.
TRTX's Price/Forward Earnings is on the same level as the industry average.
TRTX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.03 |
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 100.00% of the companies listed in the same industry.
68.75% 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 | 7.89 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TRTX's earnings are expected to grow with 31.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.32%
EPS Next 3Y31.57%
5. Dividend
5.1 Amount
TRTX has a Yearly Dividend Yield of 11.12%, which is a nice return.
Compared to an average industry Dividend Yield of 12.84, TRTX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.12% |
5.2 History
The dividend of TRTX decreases each year by -6.75%.
TRTX has been paying a dividend for over 5 years, so it has already some track record.
The dividend of TRTX decreased in the last 3 years.
Dividend Growth(5Y)-6.75%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of TRTX are negative and hence is the payout ratio. TRTX will probably not be able to sustain this dividend level.
DP-72.87%
EPS Next 2Y51.32%
EPS Next 3Y31.57%
TPG RE FINANCE TRUST INC
NYSE:TRTX (5/17/2024, 7:04:00 PM)
After market: 8.87 0 (0%)8.87
+0.02 (+0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap688.22M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.18% | ||
| ROE | -10.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 85.27% | ||
| PM (TTM) | N/A | ||
| GM | 92.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.79 | ||
| Quick Ratio | 4.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-450.54%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y116.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.5%
Revenue growth 3Y11.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y