Western Asset Mortgage Capital Corporation (WMC) Fundamental Analysis & Valuation

NYSE:WMC • US95790D2045

Current stock price

9.18 USD
+0.39 (+4.44%)
Last:

This WMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. WMC Profitability Analysis

1.1 Basic Checks

  • In the past year WMC was profitable.
  • In the past year WMC had a positive cash flow from operations.
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 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -0.52%, WMC is doing worse than 75.38% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -15.05%, WMC is doing worse than 95.38% of the companies in the same industry.
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 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 2016 2017 2018 2019 2020 2021 2022 0 100 -100 200

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1

2. WMC Health Analysis

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 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 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.
  • Looking at the Altman-Z score, with a value of -0.53, WMC is doing worse than 70.77% of the companies in the same industry.
  • 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.
  • WMC has a Debt to Equity ratio of 27.43. This is amonst the worse of the industry: WMC underperforms 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 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

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.
  • With a Current ratio value of 0.24, WMC perfoms like the industry average, 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.
  • With a Quick ratio value of 0.24, WMC perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
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 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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1

3. WMC Growth Analysis

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
  • The Revenue has grown by 164.47% in the past year. This is a very strong growth!
  • 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.
WMC Yearly Revenue VS EstimatesWMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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5

4. WMC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 7.40, which indicates a rather cheap valuation of WMC.
  • 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.35.
  • 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.
  • When comparing the Price/Forward Earnings ratio of WMC to the average of the S&P500 Index (22.61), we can say WMC is valued rather cheaply.
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 20 40 60 80

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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. WMC Dividend Analysis

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 13.43, 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!
  • WMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
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 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

5.3 Sustainability

  • WMC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • 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 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

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WMC Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)02-29
Inst Owners0.2%
Inst Owner Change-100%
Ins Owners8.62%
Ins Owner Change0%
Market Cap55.54M
Revenue(TTM)156.15M
Net Income(TTM)-11.73M
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
Graham NumberN/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
ROICexgc growth 3YN/A
ROICexgc 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%

Western Asset Mortgage Capital Corporation / WMC Fundamental Analysis 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.


What is the profitability of WMC stock?

Western Asset Mortgage Capital Corporation (WMC) has a profitability rating of 1 / 10.


What is the financial health of Western Asset Mortgage Capital Corporation (WMC) stock?

The financial health rating of Western Asset Mortgage Capital Corporation (WMC) is 1 / 10.


What is the expected EPS growth for Western Asset Mortgage Capital Corporation (WMC) stock?

The Earnings per Share (EPS) of Western Asset Mortgage Capital Corporation (WMC) is expected to decline by -1.44% in the next year.