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Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis

NYSE:WMC - New York Stock Exchange, Inc. - US95790D2045 - REIT - Currency: USD

9.18  +0.39 (+4.44%)

Fundamental Rating

2

WMC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 65 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 it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

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.
The reported net income has been mixed in the past 5 years: WMC reported negative net income in multiple years.
In multiple years WMC reported negative operating cash flow during the last 5 years.
WMC Yearly Net Income VS EBIT VS OCF VS FCFWMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

1.2 Ratios

WMC has a worse Return On Assets (-0.52%) than 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 RankSector 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
WMC Yearly ROA, ROE, ROICWMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

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 RankSector 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
WMC Yearly Profit, Operating, Gross MarginsWMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 100 -100 200

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1

2. Health

2.1 Basic Checks

WMC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, WMC has a worse debt to assets ratio.
WMC Yearly Shares OutstandingWMC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2M 4M 6M
WMC Yearly Total Debt VS Total AssetsWMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

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.
WMC has a Altman-Z score of -0.53. This is in the lower half of the industry: WMC underperforms 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's Debt to FCF ratio of 3439.13 is on the low side compared to the rest of the industry. WMC is outperformed by 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.
The Debt to Equity ratio of WMC (27.43) is worse than 98.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 27.43
Debt/FCF 3439.13
Altman-Z -0.53
ROIC/WACCN/A
WACCN/A
WMC Yearly LT Debt VS Equity VS FCFWMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 0.24 indicates that WMC may have some problems paying its short term obligations.
The Current ratio of WMC (0.24) is comparable to the rest of the 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 RankSector Rank
Current Ratio 0.24
Quick Ratio 0.24
WMC Yearly Current Assets VS Current LiabilitesWMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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1

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.
The Revenue has grown by 164.47% in the past year. This is a very strong growth!
Measured over the past years, WMC shows a very negative growth in Revenue. The Revenue has been decreasing by -16.02% on average per year.
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.
WMC Yearly Revenue VS EstimatesWMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M
WMC Yearly EPS VS EstimatesWMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.40 indicates a rather cheap valuation of WMC.
Based on the Price/Earnings ratio, WMC is valued cheaper than 83.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. WMC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.51, the valuation of WMC can be described as very cheap.
WMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WMC is cheaper than 80.00% of the companies in the same industry.
WMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.4
Fwd PE 7.51
WMC Price Earnings VS Forward Price EarningsWMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

66.15% of the companies in the same industry are cheaper than WMC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 89.29
EV/EBITDA N/A
WMC Per share dataWMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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4

5. Dividend

5.1 Amount

WMC has a Yearly Dividend Yield of 6.10%, which is a nice return.
Compared to an average industry Dividend Yield of 13.68, WMC's dividend is way lower than its industry peers. On top of this 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 2.36, WMC pays a better dividend.
Industry RankSector 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
WMC Yearly Dividends per shareWMC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

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.
WMC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-77.09%
EPS Next 2YN/A
EPS Next 3YN/A
WMC Yearly Income VS Free CF VS DividendWMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

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Western Asset Mortgage Capital Corporation

NYSE:WMC (12/5/2023, 8:25:54 PM)

9.18

+0.39 (+4.44%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)11-22 2023-11-22/amc
Earnings (Next)02-29 2024-02-29/amc
Inst Owners0.2%
Inst Owner Change0%
Ins Owners8.62%
Ins Owner Change0%
Market Cap55.54M
Analysts45
Price Target17.85 (94.44%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.1%
Yearly Dividend1.82
Dividend Growth(5Y)-31.88%
DP-77.09%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)528.43%
Min Revenue beat(2)521.66%
Max Revenue beat(2)535.2%
Revenue beat(4)4
Avg Revenue beat(4)613.45%
Min Revenue beat(4)521.66%
Max Revenue beat(4)763.54%
Revenue beat(8)7
Avg Revenue beat(8)349.28%
Revenue beat(12)10
Avg Revenue beat(12)307.91%
Revenue beat(16)13
Avg Revenue beat(16)221.81%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 7.4
Fwd PE 7.51
P/S 0.36
P/FCF 89.29
P/OCF 89.29
P/B 0.71
P/tB 0.71
EV/EBITDA N/A
EPS(TTM)1.24
EY13.51%
EPS(NY)1.22
Fwd EY13.31%
FCF(TTM)0.1
FCFY1.12%
OCF(TTM)0.1
OCFY1.12%
SpS25.81
BVpS12.89
TBVpS12.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.52%
ROE -15.05%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 1.42%
FCFM 0.4%
ROA(3y)-5.07%
ROA(5y)-2.65%
ROE(3y)-82.73%
ROE(5y)-46.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.07
Health
Industry RankSector Rank
Debt/Equity 27.43
Debt/FCF 3439.13
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.24
Quick Ratio 0.24
Altman-Z -0.53
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.64%
EPS 3Y-53.2%
EPS 5Y-36.49%
EPS Q2Q%78.2%
EPS Next Y-1.44%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)164.47%
Revenue growth 3Y-33.43%
Revenue growth 5Y-16.02%
Sales Q2Q%1205.94%
Revenue Next Year0.93%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y87.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-93.09%
FCF growth 3YN/A
FCF growth 5Y-23.56%
OCF growth 1Y-93.09%
OCF growth 3YN/A
OCF growth 5Y-23.56%