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 64 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MFA had positive earnings in the past year.
In the past year MFA had a positive cash flow from operations.
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
With an excellent Return On Assets value of 1.66%, MFA belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
With a decent Return On Equity value of 9.84%, MFA is doing good in the industry, outperforming 78.13% of the companies in the same industry.
The Return On Invested Capital of MFA (1.44%) is better than 82.81% 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
MFA has a Profit Margin of 17.62%. This is in the better half of the industry: MFA outperforms 68.75% of its industry peers.
In the last couple of years the Profit Margin of MFA has declined.
Looking at the Operating Margin, with a value of 18.80%, MFA is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
In the last couple of years the Operating Margin of MFA has declined.
The Gross Margin of MFA (38.46%) is better than 67.19% 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
MFA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MFA remains at a similar level compared to 1 year ago.
MFA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MFA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.00, we must say that MFA is in the distress zone and has some risk of bankruptcy.
MFA has a Altman-Z score of 0.00. This is comparable to the rest of the industry: MFA outperforms 54.69% of its industry peers.
MFA has a debt to FCF ratio of 96.45. This is a negative value and a sign of low solvency as MFA would need 96.45 years to pay back of all of its debts.
MFA has a Debt to FCF ratio of 96.45. This is comparable to the rest of the industry: MFA outperforms 51.56% 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.
With a Debt to Equity ratio value of 4.74, MFA perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.74 | ||
| Debt/FCF | 96.45 | ||
| Altman-Z | 0 |
ROIC/WACC0.31
WACC4.68%
2.3 Liquidity
A Current Ratio of 1.15 indicates that MFA should not have too much problems paying its short term obligations.
The Current ratio of MFA (1.15) is better than 82.81% of its industry peers.
MFA has a Quick Ratio of 1.15. This is a normal value and indicates that MFA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MFA (1.15) is better 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.
MFA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.00% yearly.
Looking at the last year, MFA shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to decrease by -4.71% on average over the next years.
MFA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.00% yearly.
EPS Next Y-18.2%
EPS Next 2Y-8.2%
EPS Next 3Y-4.71%
EPS Next 5YN/A
Revenue Next Year15.04%
Revenue Next 2Y18.79%
Revenue Next 3Y16%
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
With a Price/Earnings ratio of 6.24, 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 90.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MFA is valued rather cheaply.
MFA is valuated cheaply with a Price/Forward Earnings ratio of 6.37.
92.19% of the companies in the same industry are more expensive than MFA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MFA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.24 | ||
| Fwd PE | 6.37 |
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 | 11.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as MFA's earnings are expected to decrease with -4.71% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.2%
EPS Next 3Y-4.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.51%, MFA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.96, MFA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.51% |
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.
MFA's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP95.4%
EPS Next 2Y-8.2%
EPS Next 3Y-4.71%
10.3
-0.06 (-0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners67.65%
Inst Owner Change-64.52%
Ins Owners0.88%
Ins Owner Change0.71%
Market Cap1.05B
Analysts78.33
Price Target12.28 (19.22%)
Short Float %2.16%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.51% |
Yearly Dividend1.73
Dividend Growth(5Y)-11.99%
DP95.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-9.12%
PT rev (3m)-10.25%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)4.18%
Revenue NQ rev (3m)12.14%
Revenue NY rev (1m)-12.61%
Revenue NY rev (3m)-6.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.24 | ||
| Fwd PE | 6.37 | ||
| P/S | 1 | ||
| P/FCF | 11.37 | ||
| P/OCF | 11.37 | ||
| P/B | 0.56 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.65
EY16.02%
EPS(NY)1.62
Fwd EY15.71%
FCF(TTM)0.91
FCFY8.8%
OCF(TTM)0.91
OCFY8.8%
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 |
F-Score6
WACC4.68%
ROIC/WACC0.31
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-18.2%
EPS Next 2Y-8.2%
EPS Next 3Y-4.71%
EPS Next 5YN/A
Revenue 1Y (TTM)96.36%
Revenue growth 3Y54.82%
Revenue growth 5Y1.48%
Sales Q2Q%9.72%
Revenue Next Year15.04%
Revenue Next 2Y18.79%
Revenue Next 3Y16%
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%