Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMC - US95790D2045 - REIT
9.18 USD
+0.39 (+4.44%)
Overall WMC gets a fundamental rating of 2 out of 10. We evaluated WMC against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of WMC have multiple concerns. WMC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- WMC had positive earnings in the past year.
- In the past year WMC had a positive cash flow from operations.
1.2 Ratios
- WMC has a Return On Assets of -0.52%. This is in the lower half of the industry: WMC underperforms 75.38% of its industry peers.
- With a Return On Equity value of -15.05%, WMC is not doing good in the industry: 95.38% of the companies in the same industry are doing better.
| 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 worse Gross Margin (1.42%) than 84.62% of its industry peers.
- WMC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
- The debt/assets ratio for WMC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -0.53, we must say that WMC is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of -0.53, WMC is not doing good in the industry: 70.77% of the companies in the same industry are doing better.
- The Debt to FCF ratio of WMC is 3439.13, which is on the high side as it means it would take WMC, 3439.13 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WMC (3439.13) is worse than 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.
- WMC's Debt to Equity ratio of 27.43 is on the low side compared to the rest of the industry. WMC is outperformed by 98.46% of its industry peers.
| 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.
- Looking at the Current ratio, with a value of 0.24, WMC is in line with its industry, outperforming 52.31% of the companies in the same industry.
- 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%.
- Measured over the past years, WMC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -36.49% on average per year.
- Looking at the last year, WMC shows a very strong growth in Revenue. 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 Q2Q%78.2%
Revenue 1Y (TTM)164.47%
Revenue growth 3Y-33.43%
Revenue growth 5Y-16.02%
Sales Q2Q%1205.94%
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
- Based on the Price/Earnings ratio of 7.40, the valuation of WMC can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of WMC indicates a rather cheap valuation: WMC is cheaper than 83.08% of the companies listed in the same industry.
- WMC is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 7.51, which indicates a rather cheap valuation of WMC.
- 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.
- WMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, WMC is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
| 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 11.26. 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 1.82, 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.
- WMC has decreased its dividend recently.
Dividend Growth(5Y)-31.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- The earnings of WMC are negative and hence is the payout ratio. WMC will probably not be able to sustain this dividend level.
- 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 / WMC FAQ
What is the ChartMill fundamental rating of Western Asset Mortgage Capital Corporation (WMC) stock?
ChartMill assigns a fundamental rating of 2 / 10 to WMC.
What is the valuation status of Western Asset Mortgage Capital Corporation (WMC) stock?
ChartMill assigns a valuation rating of 5 / 10 to Western Asset Mortgage Capital Corporation (WMC). This can be considered as Fairly Valued.
Can you provide the profitability details for Western Asset Mortgage Capital Corporation?
Western Asset Mortgage Capital Corporation (WMC) has a profitability rating of 1 / 10.
Can you provide the financial health for WMC stock?
The financial health rating of Western Asset Mortgage Capital Corporation (WMC) is 1 / 10.
Can you provide the dividend sustainability for WMC stock?
The dividend rating of Western Asset Mortgage Capital Corporation (WMC) is 4 / 10 and the dividend payout ratio is -77.09%.