MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MFA - US55272X6076 - REIT
9.49 USD
-0.11 (-1.15%)
9.49 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MFA. MFA was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of MFA while its profitability can be described as average. MFA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MFA had positive earnings in the past year.
MFA had a positive operating cash flow in the past year.
In multiple years MFA reported negative net income over the last 5 years.
In the past 5 years MFA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 0.74%, MFA belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.93%, MFA is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
MFA's Return On Invested Capital of 0.88% is fine compared to the rest of the industry. MFA outperforms 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 4.93% | ||
| ROIC | 0.88% |
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
With a decent Profit Margin value of 11.27%, MFA is doing good in the industry, outperforming 63.24% of the companies in the same industry.
In the last couple of years the Profit Margin of MFA has declined.
Looking at the Operating Margin, with a value of 16.20%, MFA is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
In the last couple of years the Operating Margin of MFA has declined.
Looking at the Gross Margin, with a value of 36.50%, MFA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MFA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.2% | ||
| PM (TTM) | 11.27% | ||
| GM | 36.5% |
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
Compared to 1 year ago, MFA has about the same amount of shares outstanding.
The number of shares outstanding for MFA has been reduced compared to 5 years ago.
The debt/assets ratio for MFA is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of -0.06, MFA is in line with its industry, outperforming 54.41% of the companies in the same industry.
MFA has a debt to FCF ratio of 65.58. This is a negative value and a sign of low solvency as MFA would need 65.58 years to pay back of all of its debts.
MFA has a better Debt to FCF ratio (65.58) than 76.47% of its industry peers.
A Debt/Equity ratio of 5.40 is on the high side and indicates that MFA has dependencies on debt financing.
MFA's Debt to Equity ratio of 5.40 is in line compared to the rest of the industry. MFA outperforms 48.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | 65.58 | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MFA has a Current Ratio of 0.95. This is a bad value and indicates that MFA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MFA (0.95) is better than 70.59% of its industry peers.
A Quick Ratio of 0.95 indicates that MFA may have some problems paying its short term obligations.
MFA has a Quick ratio of 0.95. This is in the better half of the industry: MFA outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
MFA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.12%.
Measured over the past years, MFA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.50% on average per year.
MFA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.03%.
MFA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.04% yearly.
EPS 1Y (TTM)-32.12%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.95%
Revenue 1Y (TTM)-24.03%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%12.18%
3.2 Future
Based on estimates for the next years, MFA will show a decrease in Earnings Per Share. The EPS will decrease by -0.32% on average per year.
Based on estimates for the next years, MFA will show a quite strong growth in Revenue. The Revenue will grow by 12.28% on average per year.
EPS Next Y-32.02%
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
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
A Price/Earnings ratio of 8.47 indicates a reasonable valuation of MFA.
Based on the Price/Earnings ratio, MFA is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
MFA is valuated cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.92, the valuation of MFA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFA indicates a rather cheap valuation: MFA is cheaper than 83.82% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.66. MFA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFA is valued cheaper than 89.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.95%, MFA is a good candidate for dividend investing.
MFA's Dividend Yield is rather good when compared to the industry average which is at 12.28. MFA pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.95% |
5.2 History
The dividend of MFA decreases each year by -12.34%.
MFA has been paying a dividend for at least 10 years, so it has a reliable track record.
MFA has decreased its dividend recently.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
205.55% of the earnings are spent on dividend by MFA. This is not a sustainable payout ratio.
MFA's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP205.55%
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
9.49
-0.11 (-1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners56.18%
Inst Owner Change-7.91%
Ins Owners0.89%
Ins Owner Change-0.07%
Market Cap969.88M
Revenue(TTM)797.68M
Net Income(TTM)89.86M
Analysts72
Price Target10.52 (10.85%)
Short Float %2.41%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.95% |
Yearly Dividend1.73
Dividend Growth(5Y)-12.34%
DP205.55%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.83%
Min EPS beat(2)-27.99%
Max EPS beat(2)-21.66%
EPS beat(4)0
Avg EPS beat(4)-15.54%
Min EPS beat(4)-27.99%
Max EPS beat(4)-2.24%
EPS beat(8)2
Avg EPS beat(8)-5.13%
EPS beat(12)5
Avg EPS beat(12)-2.45%
EPS beat(16)6
Avg EPS beat(16)-562.76%
Revenue beat(2)2
Avg Revenue beat(2)7.79%
Min Revenue beat(2)3.57%
Max Revenue beat(2)12.01%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)12.01%
Revenue beat(8)4
Avg Revenue beat(8)-5.04%
Revenue beat(12)6
Avg Revenue beat(12)9.28%
Revenue beat(16)7
Avg Revenue beat(16)-5.44%
PT rev (1m)-7.09%
PT rev (3m)-7.09%
EPS NQ rev (1m)-5.23%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)-4.81%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 6.92 | ||
| P/S | 1.22 | ||
| P/FCF | 6.46 | ||
| P/OCF | 6.46 | ||
| P/B | 0.53 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.12
EY11.8%
EPS(NY)1.37
Fwd EY14.46%
FCF(TTM)1.47
FCFY15.47%
OCF(TTM)1.47
OCFY15.47%
SpS7.81
BVpS17.82
TBVpS17.2
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 4.93% | ||
| ROCE | 1.11% | ||
| ROIC | 0.88% | ||
| ROICexc | 0.9% | ||
| ROICexgc | 0.93% | ||
| OM | 16.2% | ||
| PM (TTM) | 11.27% | ||
| GM | 36.5% | ||
| FCFM | 18.81% |
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
ROICexgc growth 3Y-28.3%
ROICexgc 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-Score4
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | 65.58 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 167% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | -0.06 |
F-Score4
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)-32.12%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-45.95%
EPS Next Y-32.02%
EPS Next 2Y-5.92%
EPS Next 3Y-0.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.03%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%12.18%
Revenue Next Year4.4%
Revenue Next 2Y9.5%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y-25.62%
EBIT growth 3Y-22.41%
EBIT growth 5Y-20.98%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.9%
FCF growth 3Y22.71%
FCF growth 5Y-1.32%
OCF growth 1Y22.6%
OCF growth 3Y18.49%
OCF growth 5Y-1.5%
MFA FINANCIAL INC / MFA FAQ
Can you provide the ChartMill fundamental rating for MFA FINANCIAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to MFA.
Can you provide the valuation status for MFA FINANCIAL INC?
ChartMill assigns a valuation rating of 6 / 10 to MFA FINANCIAL INC (MFA). This can be considered as Fairly Valued.
Can you provide the profitability details for MFA FINANCIAL INC?
MFA FINANCIAL INC (MFA) has a profitability rating of 5 / 10.
How financially healthy is MFA FINANCIAL INC?
The financial health rating of MFA FINANCIAL INC (MFA) is 3 / 10.
How sustainable is the dividend of MFA FINANCIAL INC (MFA) stock?
The dividend rating of MFA FINANCIAL INC (MFA) is 5 / 10 and the dividend payout ratio is 205.55%.