Western Asset Mortgage Capital Corporation (WMC)
US95790D2045 - REIT
We assign a fundamental rating of 2 out of 10 to WMC. WMC was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. WMC has a bad profitability rating. Also its financial health evaluation is rather negative. WMC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WMC was profitable.
WMC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WMC reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: WMC reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -0.52%, WMC is not doing good in the industry: 75.38% of the companies in the same industry are doing better.
WMC has a Return On Equity of -15.05%. This is amonst the worse of the industry: WMC underperforms 95.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -15.05% | ||
| ROIC | N/A |
ROA(3y)-5.07%
ROA(5y)-2.65%
ROE(3y)-82.73%
ROE(5y)-46.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WMC has a Gross Margin of 1.42%. This is amonst the worse of the industry: WMC underperforms 84.62% of its industry peers.
The Profit Margin and Operating Margin are not available for WMC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, WMC has about the same amount of shares outstanding.
WMC has more shares outstanding than it did 5 years ago.
WMC has a worse debt/assets ratio than last year.
2.2 Solvency
WMC has an Altman-Z score of -0.53. This is a bad value and indicates that WMC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WMC (-0.53) is worse than 70.77% of its industry peers.
WMC has a debt to FCF ratio of 3439.13. This is a negative value and a sign of low solvency as WMC would need 3439.13 years to pay back of all of its debts.
WMC has a Debt to FCF ratio of 3439.13. This is in the lower half of the industry: WMC underperforms 67.69% of its industry peers.
WMC has a Debt/Equity ratio of 27.43. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 27.43, WMC is not doing good in the industry: 98.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 27.43 | ||
| Debt/FCF | 3439.13 | ||
| Altman-Z | -0.53 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
WMC has a Current Ratio of 0.24. This is a bad value and indicates that WMC is not financially healthy enough and could expect problems in meeting its short term obligations.
WMC has a Current ratio (0.24) which is in line with its industry peers.
A Quick Ratio of 0.24 indicates that WMC may have some problems paying its short term obligations.
WMC's Quick ratio of 0.24 is in line compared to the rest of the industry. WMC outperforms 52.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
WMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.64%.
The earnings per share for WMC have been decreasing by -36.49% on average. This is quite bad
WMC shows a strong growth in Revenue. In the last year, the Revenue has grown by 164.47%.
WMC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -16.02% yearly.
EPS 1Y (TTM)-43.64%
EPS 3Y-53.2%
EPS 5Y-36.49%
EPS growth Q2Q78.2%
Revenue 1Y (TTM)164.47%
Revenue growth 3Y-33.43%
Revenue growth 5Y-16.02%
Revenue growth Q2Q1205.94%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-1.44%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.93%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
WMC is valuated cheaply with a Price/Earnings ratio of 7.40.
83.08% of the companies in the same industry are more expensive than WMC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.28. WMC is valued rather cheaply when compared to this.
WMC is valuated cheaply with a Price/Forward Earnings ratio of 7.51.
Based on the Price/Forward Earnings ratio, WMC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, WMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMC indicates a slightly more expensive valuation: WMC is more expensive than 66.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.10%, WMC is a good candidate for dividend investing.
With a Dividend Yield of 6.10, WMC pays less dividend than the industry average, which is at 13.06. 92.31% of the companies listed in the same industry pay a better dividend than WMC!
Compared to an average S&P500 Dividend Yield of 2.41, WMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
5.2 History
The dividend of WMC decreases each year by -31.88%.
WMC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WMC decreased recently.
Dividend Growth(5Y)-31.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WMC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of WMC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-77.09%
EPS Next 2YN/A
EPS Next 3YN/A
Western Asset Mortgage Capital Corporation
NYSE:WMC (12/5/2023, 7:25:54 PM)
9.18
+0.39 (+4.44%)
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 Cap55.54M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
Dividend Growth(5Y)
DP
Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 7.51 | ||
| 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 | -0.52% | ||
| ROE | -15.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.42% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 27.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| 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)-43.64%
EPS 3Y-53.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)164.47%
Revenue growth 3Y-33.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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