MFA FINANCIAL INC (MFA)
US55272X6076 - REIT
Overall MFA gets a fundamental rating of 5 out of 10. We evaluated MFA against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. MFA has only an average score on both its financial health and profitability. 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.
The reported net income has been mixed in the past 5 years: MFA reported negative net income in multiple years.
MFA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFA has a better Return On Assets (1.66%) than 85.94% of its industry peers.
MFA has a Return On Equity of 9.84%. This is in the better half of the industry: MFA outperforms 78.13% of its industry peers.
The Return On Invested Capital of MFA (1.44%) is better than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 9.84% | ||
| ROIC | 1.44% |
ROA(3y)0.25%
ROA(5y)-1.36%
ROE(3y)0.25%
ROE(5y)-3.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 17.62%, MFA is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of MFA has declined.
With a decent Operating Margin value of 18.80%, MFA is doing good in the industry, outperforming 65.63% of the companies in the same industry.
In the last couple of years the Operating Margin of MFA has declined.
MFA has a better Gross Margin (38.46%) than 65.63% of its industry peers.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.8% | ||
| PM (TTM) | 17.62% | ||
| GM | 38.46% |
OM growth 3YN/A
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5Y-31.24%
GM growth 3YN/A
GM growth 5Y-10.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFA is destroying value.
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
Based on the Altman-Z score of -0.01, we must say that MFA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.01, MFA is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Debt to FCF ratio of MFA is 96.45, which is on the high side as it means it would take MFA, 96.45 years of fcf income to pay off all of its debts.
MFA's Debt to FCF ratio of 96.45 is in line compared to the rest of the industry. MFA outperforms 53.13% of its industry peers.
MFA has a Debt/Equity ratio of 4.74. This is a high value indicating a heavy dependency on external financing.
MFA has a Debt to Equity ratio of 4.74. This is comparable to the rest of the industry: MFA outperforms 48.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.74 | ||
| Debt/FCF | 96.45 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.36
WACC4.02%
2.3 Liquidity
A Current Ratio of 1.15 indicates that MFA should not have too much problems paying its short term obligations.
MFA's Current ratio of 1.15 is amongst the best of the industry. MFA outperforms 82.81% of its industry peers.
A Quick Ratio of 1.15 indicates that MFA should not have too much problems paying its short term obligations.
MFA has a better Quick ratio (1.15) than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
MFA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.02%, which is quite good.
Measured over the past years, MFA shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.00% on average per year.
MFA shows a strong growth in Revenue. In the last year, the Revenue has grown by 96.36%.
The Revenue has been growing slightly by 1.48% on average over the past years.
EPS 1Y (TTM)17.02%
EPS 3YN/A
EPS 5Y-7%
EPS Q2Q%-7.5%
Revenue 1Y (TTM)96.36%
Revenue growth 3Y54.82%
Revenue growth 5Y1.48%
Sales Q2Q%9.72%
3.2 Future
MFA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.16% yearly.
The Revenue is expected to grow by 13.42% on average over the next years. This is quite good.
EPS Next Y-18.73%
EPS Next 2Y-7.4%
EPS Next 3Y-4.16%
EPS Next 5YN/A
Revenue Next Year9.6%
Revenue Next 2Y19.45%
Revenue Next 3Y13.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.30 indicates a rather cheap valuation of MFA.
Based on the Price/Earnings ratio, MFA is valued cheaper than 89.06% of the companies in the same industry.
MFA is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
MFA is valuated cheaply with a Price/Forward Earnings ratio of 6.31.
89.06% of the companies in the same industry are more expensive than MFA, based on the Price/Forward Earnings ratio.
MFA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 6.31 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFA is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MFA's earnings are expected to decrease with -4.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.4%
EPS Next 3Y-4.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.96%, MFA is a good candidate for dividend investing.
The stock price of MFA dropped by -20.14% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MFA's Dividend Yield is comparable with the industry average which is at 12.60.
Compared to an average S&P500 Dividend Yield of 2.24, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.96% |
5.2 History
The dividend of MFA decreases each year by -11.99%.
MFA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-11.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
95.40% of the earnings are spent on dividend by MFA. This is not a sustainable payout ratio.
The Dividend Rate of MFA has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP95.4%
EPS Next 2Y-7.4%
EPS Next 3Y-4.16%
MFA FINANCIAL INC
NYSE:MFA (12/20/2024, 8:24:06 PM)
After market: 10.39 0 (0%)10.39
+0.16 (+1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners65.22%
Inst Owner Change4.9%
Ins Owners4.01%
Ins Owner Change0%
Market Cap1.06B
Analysts76.36
Price Target13.69 (31.76%)
Short Float %2.39%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.96% |
Dividend Growth(5Y)-11.99%
DP95.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.61%
Min EPS beat(2)-10.96%
Max EPS beat(2)16.17%
EPS beat(4)2
Avg EPS beat(4)5.27%
Min EPS beat(4)-12.27%
Max EPS beat(4)28.15%
EPS beat(8)5
Avg EPS beat(8)4.09%
EPS beat(12)6
Avg EPS beat(12)-745.17%
EPS beat(16)10
Avg EPS beat(16)-543.98%
Revenue beat(2)1
Avg Revenue beat(2)-8.49%
Min Revenue beat(2)-17.18%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-11.22%
Min Revenue beat(4)-17.18%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)13.35%
Revenue beat(12)4
Avg Revenue beat(12)-7.64%
Revenue beat(16)8
Avg Revenue beat(16)62.03%
PT rev (1m)-1.23%
PT rev (3m)5.92%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-3.24%
Revenue NQ rev (1m)1.78%
Revenue NQ rev (3m)13.31%
Revenue NY rev (1m)-10.92%
Revenue NY rev (3m)-12.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 6.31 | ||
| P/S | 1.01 | ||
| P/FCF | 11.46 | ||
| P/OCF | 11.46 | ||
| P/B | 0.56 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.65
EY15.88%
EPS(NY)1.65
Fwd EY15.85%
FCF(TTM)0.91
FCFY8.72%
OCF(TTM)0.91
OCFY8.72%
SpS10.29
BVpS18.42
TBVpS17.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 9.84% | ||
| ROCE | 1.83% | ||
| ROIC | 1.44% | ||
| ROICexc | 1.49% | ||
| ROICexgc | 1.53% | ||
| OM | 18.8% | ||
| PM (TTM) | 17.62% | ||
| GM | 38.46% | ||
| FCFM | 8.81% |
ROA(3y)0.25%
ROA(5y)-1.36%
ROE(3y)0.25%
ROE(5y)-3.33%
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 5Y-21.94%
ROICexc growth 3YN/A
ROICexc growth 5Y-21.78%
OM growth 3YN/A
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5Y-31.24%
GM growth 3YN/A
GM growth 5Y-10.8%
F-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.74 | ||
| Debt/FCF | 96.45 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.38 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 50.01% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | -0.01 |
F-Score6
WACC4.02%
ROIC/WACC0.36
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)17.02%
EPS 3YN/A
EPS 5Y-7%
EPS Q2Q%-7.5%
EPS Next Y-18.73%
EPS Next 2Y-7.4%
EPS Next 3Y-4.16%
EPS Next 5YN/A
Revenue 1Y (TTM)96.36%
Revenue growth 3Y54.82%
Revenue growth 5Y1.48%
Sales Q2Q%9.72%
Revenue Next Year9.6%
Revenue Next 2Y19.45%
Revenue Next 3Y13.42%
Revenue Next 5YN/A
EBIT growth 1Y1208.78%
EBIT growth 3YN/A
EBIT growth 5Y-24.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-76.78%
FCF growth 3Y48.06%
FCF growth 5Y-5.83%
OCF growth 1Y-74.29%
OCF growth 3Y41.48%
OCF growth 5Y-5.97%