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 has a great profitability rating, there are some minor concerns on its financial health. TRTX may be a bit undervalued, certainly considering the very reasonable score on growth This makes TRTX very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TRTX was profitable.
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
The Return On Assets of TRTX (1.26%) is better than 85.07% of its industry peers.
TRTX's Return On Equity of 4.81% is fine compared to the rest 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 1.33%.
| 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
With an excellent Profit Margin value of 15.90%, TRTX belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
In the last couple of years the Profit Margin of TRTX has declined.
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.
TRTX's Operating Margin has declined in the last couple of years.
TRTX has a better Gross Margin (91.50%) than 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 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
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.
The number of shares outstanding for TRTX has been increased compared to 5 years ago.
TRTX has a better debt/assets ratio than last year.
2.2 Solvency
TRTX has an Altman-Z score of 0.25. This is a bad value and indicates that TRTX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TRTX (0.25) is better than 82.09% of its industry peers.
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.
With a decent Debt to FCF ratio value of 33.84, TRTX is doing good in the industry, outperforming 79.10% of the companies in the same industry.
A Debt/Equity ratio of 2.77 is on the high side and indicates that TRTX has dependencies on debt financing.
The Debt to Equity ratio of TRTX (2.77) is better than 73.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 33.84 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.7
WACC6.86%
2.3 Liquidity
A Current Ratio of 4.38 indicates that TRTX has no problem at all paying its short term obligations.
The Current ratio of TRTX (4.38) is better than 95.52% of its industry peers.
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.
With an excellent Quick ratio value of 4.38, TRTX belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
| 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.
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.
The Revenue for TRTX has decreased by -12.32% 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)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
The Earnings Per Share is expected to grow by 5.97% on average over the next years.
Based on estimates for the next years, TRTX will show a small growth in Revenue. The Revenue will grow by 0.34% on average per year.
EPS Next Y4.34%
EPS Next 2Y7.37%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue Next Year0.86%
Revenue Next 2Y3.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.47, the valuation of TRTX can be described as very reasonable.
TRTX's Price/Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 71.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.86. TRTX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.13, the valuation of TRTX can be described as reasonable.
Based on the Price/Forward Earnings ratio, TRTX is valued a bit cheaper than 67.16% of the companies in the same industry.
TRTX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
97.01% of the companies in the same industry are more expensive than TRTX, based on the Enterprise Value to EBITDA ratio.
80.60% 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 | 7.92 | ||
| EV/EBITDA | 13.43 |
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)2.41
PEG (5Y)N/A
EPS Next 2Y7.37%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
TRTX has a Yearly Dividend Yield of 8.77%, which is a nice return.
TRTX's Dividend Yield is slightly below the industry average, which is at 10.73.
Compared to an average S&P500 Dividend Yield of 2.36, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
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
TRTX pays out 175.50% of its income as dividend. This is not a sustainable payout ratio.
DP175.5%
EPS Next 2Y7.37%
EPS Next 3Y5.97%
NYSE:TRTX (8/21/2025, 1:44:02 PM)
9
-0.17 (-1.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner Change-1.86%
Ins Owners2.83%
Ins Owner Change-1.76%
Market Cap707.31M
Analysts80
Price Target10.2 (13.33%)
Short Float %6.58%
Short Ratio6.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
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)5.26%
PT rev (3m)5.26%
EPS NQ rev (1m)4.07%
EPS NQ rev (3m)-4.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.09%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)2.6%
Revenue NY rev (1m)-4.25%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 8.13 | ||
| P/S | 2.15 | ||
| P/FCF | 7.92 | ||
| P/OCF | 7.6 | ||
| P/B | 0.65 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)0.86
EY9.56%
EPS(NY)1.11
Fwd EY12.3%
FCF(TTM)1.14
FCFY12.63%
OCF(TTM)1.18
OCFY13.16%
SpS4.19
BVpS13.88
TBVpS13.68
PEG (NY)2.41
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
WACC6.86%
ROIC/WACC0.7
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 Y4.34%
EPS Next 2Y7.37%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.32%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-8.66%
Revenue Next Year0.86%
Revenue Next 2Y3.29%
Revenue Next 3Y0.34%
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%