MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
USA - NYSE:MFA - US55272X6076 - REIT
9.73 USD
-0.13 (-1.32%)
9.7898 USD
+0.06 (+0.61%)
MFA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. MFA has an average financial health and profitability rating. MFA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MFA was profitable.
MFA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MFA reported negative net income in multiple years.
Each year in the past 5 years MFA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.79%, MFA belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
MFA has a Return On Equity of 5.08%. This is amongst the best in the industry. MFA outperforms 80.65% of its industry peers.
MFA's Return On Invested Capital of 0.91% is fine compared to the rest of the industry. MFA outperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 5.08% | ||
| ROIC | 0.91% |
ROA(3y)-0.57%
ROA(5y)-1.74%
ROE(3y)-2.06%
ROE(5y)-4.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MFA has a better Profit Margin (11.53%) than 74.19% of its industry peers.
MFA's Profit Margin has declined in the last couple of years.
MFA has a Operating Margin of 16.31%. This is in the better half of the industry: MFA outperforms 75.81% of its industry peers.
In the last couple of years the Operating Margin of MFA has declined.
The Gross Margin of MFA (36.64%) is better than 79.03% of its industry peers.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.31% | ||
| PM (TTM) | 11.53% | ||
| GM | 36.64% |
OM growth 3Y-36.21%
OM growth 5Y-20.95%
PM growth 3Y-45.5%
PM growth 5Y-24.97%
GM growth 3Y-21.52%
GM growth 5Y-9.69%
2. Health
2.1 Basic Checks
MFA has about the same amout of shares outstanding than it did 1 year ago.
MFA has less shares outstanding than it did 5 years ago.
MFA has a worse debt/assets ratio than last year.
2.2 Solvency
MFA has an Altman-Z score of -0.06. This is a bad value and indicates that MFA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.06, MFA perfoms like the industry average, outperforming 53.23% of the companies in the same industry.
MFA has a debt to FCF ratio of 76.65. This is a negative value and a sign of low solvency as MFA would need 76.65 years to pay back of all of its debts.
MFA has a better Debt to FCF ratio (76.65) than 62.90% of its industry peers.
A Debt/Equity ratio of 5.22 is on the high side and indicates that MFA has dependencies on debt financing.
The Debt to Equity ratio of MFA (5.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 76.65 | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MFA has a Current Ratio of 1.10. This is a normal value and indicates that MFA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, MFA is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that MFA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, MFA is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
MFA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.21%.
The earnings per share for MFA have been decreasing by -13.50% on average. This is quite bad
Looking at the last year, MFA shows a very negative growth in Revenue. The Revenue has decreased by -13.38% in the last year.
The Revenue has been decreasing by -0.04% on average over the past years.
EPS 1Y (TTM)-23.21%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.45%
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%14.56%
3.2 Future
The Earnings Per Share is expected to grow by 0.33% on average over the next years.
The Revenue is expected to grow by 12.28% on average over the next years. This is quite good.
EPS Next Y-28.97%
EPS Next 2Y-3.64%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year4.4%
Revenue Next 2Y9.5%
Revenue Next 3Y12.28%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.54, which indicates a rather cheap valuation of MFA.
Based on the Price/Earnings ratio, MFA is valued cheaply inside the industry as 85.48% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MFA to the average of the S&P500 Index (27.41), we can say MFA is valued rather cheaply.
The Price/Forward Earnings ratio is 6.76, which indicates a rather cheap valuation of MFA.
MFA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MFA is cheaper than 87.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, MFA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFA is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.64%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
MFA has a Yearly Dividend Yield of 14.12%, which is a nice return.
MFA's Dividend Yield is rather good when compared to the industry average which is at 11.50. MFA pays more dividend than 85.48% of the companies in the same industry.
MFA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.12% |
5.2 History
The dividend of MFA decreases each year by -12.34%.
MFA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MFA decreased recently.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
195.15% of the earnings are spent on dividend by MFA. This is not a sustainable payout ratio.
DP195.15%
EPS Next 2Y-3.64%
EPS Next 3Y0.33%
9.73
-0.13 (-1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.32%
Inst Owner Change-5.12%
Ins Owners0.89%
Ins Owner Change0.38%
Market Cap998.98M
Analysts72.73
Price Target11.32 (16.34%)
Short Float %2.35%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.12% |
Yearly Dividend1.73
Dividend Growth(5Y)-12.34%
DP195.15%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.97%
Min EPS beat(2)-21.66%
Max EPS beat(2)-10.27%
EPS beat(4)0
Avg EPS beat(4)-11.28%
Min EPS beat(4)-21.66%
Max EPS beat(4)-2.24%
EPS beat(8)3
Avg EPS beat(8)0.01%
EPS beat(12)6
Avg EPS beat(12)1.95%
EPS beat(16)7
Avg EPS beat(16)-558.04%
Revenue beat(2)2
Avg Revenue beat(2)9.7%
Min Revenue beat(2)7.38%
Max Revenue beat(2)12.01%
Revenue beat(4)2
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)12.01%
Revenue beat(8)4
Avg Revenue beat(8)-4.4%
Revenue beat(12)5
Avg Revenue beat(12)7.36%
Revenue beat(16)7
Avg Revenue beat(16)12.05%
PT rev (1m)0.91%
PT rev (3m)-3.48%
EPS NQ rev (1m)-6.9%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)-14.06%
EPS NY rev (3m)-4.94%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)2.29%
Revenue NY rev (3m)3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 6.76 | ||
| P/S | 1.24 | ||
| P/FCF | 8.06 | ||
| P/OCF | 8.06 | ||
| P/B | 0.55 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.29
EY13.26%
EPS(NY)1.44
Fwd EY14.79%
FCF(TTM)1.21
FCFY12.41%
OCF(TTM)1.21
OCFY12.41%
SpS7.82
BVpS17.75
TBVpS17.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 5.08% | ||
| ROCE | 1.16% | ||
| ROIC | 0.91% | ||
| ROICexc | 0.91% | ||
| ROICexgc | 0.94% | ||
| OM | 16.31% | ||
| PM (TTM) | 11.53% | ||
| GM | 36.64% | ||
| FCFM | 15.44% |
ROA(3y)-0.57%
ROA(5y)-1.74%
ROE(3y)-2.06%
ROE(5y)-4.53%
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 3Y-28.3%
ROICexcg growth 5Y-17.73%
ROICexc growth 3Y-27.72%
ROICexc growth 5Y-17.35%
OM growth 3Y-36.21%
OM growth 5Y-20.95%
PM growth 3Y-45.5%
PM growth 5Y-24.97%
GM growth 3Y-21.52%
GM growth 5Y-9.69%
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.22 | ||
| Debt/FCF | 76.65 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 133.85% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | -0.06 |
F-Score6
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)-23.21%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.45%
EPS Next Y-28.97%
EPS Next 2Y-3.64%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%14.56%
Revenue Next Year4.4%
Revenue Next 2Y9.5%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y93.99%
EBIT growth 3Y-22.41%
EBIT growth 5Y-20.98%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-43.24%
FCF growth 3Y22.71%
FCF growth 5Y-1.32%
OCF growth 1Y-43.32%
OCF growth 3Y18.49%
OCF growth 5Y-1.5%