MFA FINANCIAL INC (MFA) Stock Fundamental Analysis
NYSE:MFA - New York Stock Exchange, Inc. - US55272X6076 - REIT - Currency: USD
Overall MFA gets a fundamental rating of 5 out of 10. We evaluated MFA against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of MFA get a neutral evaluation. Nothing too spectacular is happening here. MFA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MFA was profitable.
MFA had a positive operating cash flow in the past year.
In multiple years MFA reported negative net income over the last 5 years.
MFA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.03%, MFA belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.46%, MFA belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.12%, MFA is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 6.46% | ||
| ROIC | 1.12% |
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 Profit Margin of 11.72%. This is in the better half of the industry: MFA outperforms 72.31% of its industry peers.
In the last couple of years the Profit Margin of MFA has declined.
MFA has a Operating Margin of 15.64%. This is in the better half of the industry: MFA outperforms 75.38% of its industry peers.
In the last couple of years the Operating Margin of MFA has declined.
Looking at the Gross Margin, with a value of 36.39%, MFA is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | 11.72% | ||
| GM | 36.39% |
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
The number of shares outstanding for MFA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MFA has less shares outstanding
MFA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.03, we must say that MFA is in the distress zone and has some risk of bankruptcy.
MFA has a Altman-Z score (-0.03) which is in line with its industry peers.
MFA has a debt to FCF ratio of 70.92. This is a negative value and a sign of low solvency as MFA would need 70.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 70.92, MFA is in line with its industry, outperforming 55.38% of the companies in the same industry.
MFA has a Debt/Equity ratio of 5.10. This is a high value indicating a heavy dependency on external financing.
MFA has a Debt to Equity ratio of 5.10. This is comparable to the rest of the industry: MFA outperforms 49.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.1 | ||
| Debt/FCF | 70.92 | ||
| Altman-Z | -0.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.14 indicates that MFA should not have too much problems paying its short term obligations.
The Current ratio of MFA (1.14) is better than 90.77% of its industry peers.
MFA has a Quick Ratio of 1.14. 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 Quick ratio, with a value of 1.14, MFA belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
MFA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.15%.
MFA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.50% yearly.
The Revenue has grown by 63.01% in the past year. This is a very strong growth!
The Revenue has been decreasing by -0.04% on average over the past years.
EPS 1Y (TTM)-9.15%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-17.14%
Revenue 1Y (TTM)63.01%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%20.34%
3.2 Future
MFA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.33% yearly.
MFA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.28% yearly.
EPS Next Y-16.46%
EPS Next 2Y-5%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y7.43%
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
Based on the Price/Earnings ratio of 6.54, the valuation of MFA can be described as very cheap.
MFA's Price/Earnings ratio is rather cheap when compared to the industry. MFA is cheaper than 89.23% of the companies in the same industry.
MFA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
MFA is valuated cheaply with a Price/Forward Earnings ratio of 6.96.
Based on the Price/Forward Earnings ratio, MFA is valued a bit cheaper than 80.00% of the companies in the same industry.
MFA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFA is valued a bit cheaper than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.57 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.78%, MFA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.54, MFA pays a bit more dividend than its industry peers.
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 | 14.78% |
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.
The dividend of MFA decreased recently.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MFA pays out 149.01% of its income as dividend. This is not a sustainable payout ratio.
DP149.01%
EPS Next 2Y-5%
EPS Next 3Y0.33%
9.74
+0.03 (+0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners63.01%
Inst Owner Change-6.01%
Ins Owners0.89%
Ins Owner Change1.08%
Market Cap999.81M
Analysts76
Price Target11.73 (20.43%)
Short Float %2.37%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.78% |
Yearly Dividend1.73
Dividend Growth(5Y)-12.34%
DP149.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.26%
Min EPS beat(2)-10.27%
Max EPS beat(2)-2.24%
EPS beat(4)1
Avg EPS beat(4)-1.83%
Min EPS beat(4)-10.96%
Max EPS beat(4)16.17%
EPS beat(8)4
Avg EPS beat(8)4.64%
EPS beat(12)6
Avg EPS beat(12)-716.73%
EPS beat(16)8
Avg EPS beat(16)-553.94%
Revenue beat(2)1
Avg Revenue beat(2)-5.5%
Min Revenue beat(2)-18.38%
Max Revenue beat(2)7.38%
Revenue beat(4)2
Avg Revenue beat(4)-6.99%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)7.38%
Revenue beat(8)3
Avg Revenue beat(8)-7.25%
Revenue beat(12)4
Avg Revenue beat(12)2.09%
Revenue beat(16)7
Avg Revenue beat(16)30.6%
PT rev (1m)4.55%
PT rev (3m)-2.47%
EPS NQ rev (1m)13.64%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)11.8%
EPS NY rev (3m)-4.57%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)5.88%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 6.96 | ||
| P/S | 0.99 | ||
| P/FCF | 7.57 | ||
| P/OCF | 7.57 | ||
| P/B | 0.54 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.49
EY15.3%
EPS(NY)1.4
Fwd EY14.36%
FCF(TTM)1.29
FCFY13.21%
OCF(TTM)1.29
OCFY13.21%
SpS9.87
BVpS17.91
TBVpS17.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 6.46% | ||
| ROCE | 1.41% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.14% | ||
| ROICexgc | 1.18% | ||
| OM | 15.64% | ||
| PM (TTM) | 11.72% | ||
| GM | 36.39% | ||
| FCFM | 13.04% |
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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.1 | ||
| Debt/FCF | 70.92 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 111.3% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | -0.03 |
F-Score7
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)-9.15%
EPS 3Y-11.02%
EPS 5Y-13.5%
EPS Q2Q%-17.14%
EPS Next Y-16.46%
EPS Next 2Y-5%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)63.01%
Revenue growth 3Y21.64%
Revenue growth 5Y-0.04%
Sales Q2Q%20.34%
Revenue Next Year0.6%
Revenue Next 2Y7.43%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y2189.04%
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-39.69%
FCF growth 3Y22.71%
FCF growth 5Y-1.32%
OCF growth 1Y-39.9%
OCF growth 3Y18.49%
OCF growth 5Y-1.5%