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 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.
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.
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 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
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.77
WACC6.87%
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 7.67 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 11.25 |
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%
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 Rank | Sector 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
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%
8.49
+0.13 (+1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.88% |
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)-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 Rank | Sector 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 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 | 0.33 |
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%