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. Both the profitability and the financial health of MFA get a neutral evaluation. Nothing too spectacular is happening here. MFA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MFA was profitable.
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
Looking at the Return On Assets, with a value of 0.59%, MFA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
MFA has a better Return On Equity (3.48%) than 68.75% of its industry peers.
MFA has a Return On Invested Capital (0.50%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 3.48% | ||
| ROIC | 0.5% |
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 better Profit Margin (8.98%) than 60.94% of its industry peers.
MFA's Profit Margin has declined in the last couple of years.
MFA has a Operating Margin (9.30%) which is comparable to the rest of the industry.
MFA's Operating Margin has declined in the last couple of years.
MFA has a Gross Margin (31.59%) which is in line with its industry peers.
MFA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 8.98% | ||
| GM | 31.59% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MFA is destroying value.
The number of shares outstanding for MFA remains at a similar level compared to 1 year ago.
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 -0.05. This is a bad value and indicates that MFA is not financially healthy and even has some risk of bankruptcy.
MFA has a Altman-Z score (-0.05) which is comparable to the rest of the industry.
MFA has a debt to FCF ratio of 61.92. This is a negative value and a sign of low solvency as MFA would need 61.92 years to pay back of all of its debts.
MFA has a Debt to FCF ratio (61.92) which is comparable to the rest of the industry.
MFA has a Debt/Equity ratio of 4.72. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.72, MFA is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.72 | ||
| Debt/FCF | 61.92 | ||
| Altman-Z | -0.05 |
ROIC/WACC0.11
WACC4.45%
2.3 Liquidity
MFA has a Current Ratio of 1.31. This is a normal value and indicates that MFA is financially healthy and should not expect problems in meeting its short term obligations.
MFA's Current ratio of 1.31 is amongst the best of the industry. MFA outperforms 87.50% of its industry peers.
MFA has a Quick Ratio of 1.31. This is a normal value and indicates that MFA is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.31, MFA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
MFA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 300.00%, which is quite impressive.
The Earnings Per Share has been decreasing by -7.00% on average over the past years.
The Revenue has grown by 52.30% in the past year. This is a very strong growth!
Measured over the past years, MFA shows a small growth in Revenue. The Revenue has been growing by 1.48% on average per year.
EPS 1Y (TTM)300%
EPS 3YN/A
EPS 5Y-7%
EPS Q2Q%-20%
Revenue 1Y (TTM)52.3%
Revenue growth 3Y54.82%
Revenue growth 5Y1.48%
Sales Q2Q%20.19%
3.2 Future
Based on estimates for the next years, MFA will show a decrease in Earnings Per Share. The EPS will decrease by -3.85% on average per year.
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
EPS Next Y-16.89%
EPS Next 2Y-7.76%
EPS Next 3Y-3.85%
EPS Next 5YN/A
Revenue Next Year24.79%
Revenue Next 2Y21.22%
Revenue Next 3Y12.52%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
MFA is valuated cheaply with a Price/Earnings ratio of 7.86.
Based on the Price/Earnings ratio, MFA is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MFA to the average of the S&P500 Index (29.62), we can say MFA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.50, the valuation of MFA can be described as very cheap.
Based on the Price/Forward Earnings ratio, MFA is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.22. MFA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFA indicates a somewhat cheap valuation: MFA is cheaper than 67.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MFA's earnings are expected to decrease with -3.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.76%
EPS Next 3Y-3.85%
5. Dividend
5.1 Amount
MFA has a Yearly Dividend Yield of 11.32%, which is a nice return.
Compared to an average industry Dividend Yield of 12.21, MFA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.24, MFA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.32% |
5.2 History
The dividend of MFA decreases each year by -11.99%.
MFA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
269.07% 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.
DP269.07%
EPS Next 2Y-7.76%
EPS Next 3Y-3.85%
MFA FINANCIAL INC
NYSE:MFA (9/6/2024, 8:27:47 PM)
After market: 12.2199 -0.04 (-0.33%)12.26
-0.07 (-0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.32% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 3.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.3% | ||
| PM (TTM) | 8.98% | ||
| GM | 31.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)300%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-16.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)52.3%
Revenue growth 3Y54.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y