AG MORTGAGE INVESTMENT TRUST (MITT) Stock Fundamental Analysis
NYSE:MITT - New York Stock Exchange, Inc. - US0012285013 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to MITT. MITT was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of MITT while its profitability can be described as average. An interesting combination arises when we look at growth and value: MITT is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
MITT had positive earnings in the past year.
MITT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MITT reported negative net income in multiple years.
MITT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MITT has a Return On Assets (0.84%) which is in line with its industry peers.
MITT has a better Return On Equity (10.80%) than 95.31% of its industry peers.
MITT has a Return On Invested Capital of 0.36%. This is comparable to the rest of the industry: MITT outperforms 40.63% of its industry peers.
MITT had an Average Return On Invested Capital over the past 3 years of 0.46%. This is in line with the industry average of 1.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 10.8% | ||
| ROIC | 0.36% |
ROA(3y)0.5%
ROA(5y)-5.5%
ROE(3y)2.11%
ROE(5y)-17.96%
ROIC(3y)0.46%
ROIC(5y)0.63%
1.3 Margins
The Profit Margin of MITT (15.34%) is better than 60.94% of its industry peers.
The Operating Margin of MITT (8.20%) is comparable to the rest of the industry.
MITT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.65%, MITT is doing worse than 78.13% of the companies in the same industry.
In the last couple of years the Gross Margin of MITT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.2% | ||
| PM (TTM) | 15.34% | ||
| GM | 12.65% |
OM growth 3Y-26.02%
OM growth 5Y-27.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-28.72%
GM growth 5Y-22.35%
2. Health
2.1 Basic Checks
The number of shares outstanding for MITT has been increased compared to 1 year ago.
MITT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MITT has a worse debt to assets ratio.
2.2 Solvency
MITT has an Altman-Z score of -0.13. This is a bad value and indicates that MITT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MITT (-0.13) is comparable to the rest of the industry.
MITT has a debt to FCF ratio of 127.10. This is a negative value and a sign of low solvency as MITT would need 127.10 years to pay back of all of its debts.
With a Debt to FCF ratio value of 127.10, MITT perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
A Debt/Equity ratio of 11.82 is on the high side and indicates that MITT has dependencies on debt financing.
MITT's Debt to Equity ratio of 11.82 is on the low side compared to the rest of the industry. MITT is outperformed by 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.82 | ||
| Debt/FCF | 127.1 | ||
| Altman-Z | -0.13 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MITT has a Current Ratio of 0.17. This is a bad value and indicates that MITT is not financially healthy enough and could expect problems in meeting its short term obligations.
MITT has a Current ratio of 0.17. This is comparable to the rest of the industry: MITT outperforms 46.88% of its industry peers.
A Quick Ratio of 0.17 indicates that MITT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.17, MITT is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.55% over the past year.
Measured over the past years, MITT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -48.04% on average per year.
The Revenue has grown by 58.43% in the past year. This is a very strong growth!
The Revenue has been growing by 10.71% on average over the past years. This is quite good.
EPS 1Y (TTM)74.55%
EPS 3Y-54.93%
EPS 5Y-48.04%
EPS Q2Q%221.21%
Revenue 1Y (TTM)58.43%
Revenue growth 3Y51.75%
Revenue growth 5Y10.71%
Sales Q2Q%29.79%
3.2 Future
Based on estimates for the next years, MITT will show a very strong growth in Earnings Per Share. The EPS will grow by 64.62% on average per year.
Based on estimates for the next years, MITT will show a very strong growth in Revenue. The Revenue will grow by 20.90% on average per year.
EPS Next Y304.74%
EPS Next 2Y91.09%
EPS Next 3Y64.62%
EPS Next 5YN/A
Revenue Next Year40.09%
Revenue Next 2Y29.96%
Revenue Next 3Y20.9%
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.
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
With a Price/Earnings ratio of 7.73, the valuation of MITT can be described as very cheap.
Based on the Price/Earnings ratio, MITT is valued cheaper than 84.38% of the companies in the same industry.
MITT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 8.13 indicates a reasonable valuation of MITT.
Based on the Price/Forward Earnings ratio, MITT is valued a bit cheaper than 70.31% of the companies in the same industry.
MITT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MITT is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.36 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MITT's earnings are expected to grow with 64.62% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y91.09%
EPS Next 3Y64.62%
5. Dividend
5.1 Amount
MITT has a Yearly Dividend Yield of 10.23%, which is a nice return.
Compared to an average industry Dividend Yield of 12.96, MITT's dividend is way lower than its industry peers. On top of this 84.38% of the companies listed in the same industry pay a better dividend than MITT!
Compared to an average S&P500 Dividend Yield of 2.27, MITT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.23% |
5.2 History
The dividend of MITT decreases each year by -27.89%.
MITT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MITT decreased recently.
Dividend Growth(5Y)-27.89%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
63.45% of the earnings are spent on dividend by MITT. This is not a sustainable payout ratio.
DP63.45%
EPS Next 2Y91.09%
EPS Next 3Y64.62%
7.42
+0.09 (+1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners35.11%
Inst Owner Change-89.64%
Ins Owners3.66%
Ins Owner Change6.21%
Market Cap218.96M
Analysts78.33
Price Target8.52 (14.82%)
Short Float %1.17%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.23% |
Yearly Dividend1.41
Dividend Growth(5Y)-27.89%
DP63.45%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.24%
Min EPS beat(2)-107.6%
Max EPS beat(2)142.07%
EPS beat(4)2
Avg EPS beat(4)50.57%
Min EPS beat(4)-107.6%
Max EPS beat(4)247.88%
EPS beat(8)5
Avg EPS beat(8)7.95%
EPS beat(12)6
Avg EPS beat(12)-599.21%
EPS beat(16)10
Avg EPS beat(16)-137.61%
Revenue beat(2)0
Avg Revenue beat(2)-8.55%
Min Revenue beat(2)-11.41%
Max Revenue beat(2)-5.68%
Revenue beat(4)1
Avg Revenue beat(4)-3.15%
Min Revenue beat(4)-11.41%
Max Revenue beat(4)8.09%
Revenue beat(8)2
Avg Revenue beat(8)18.56%
Revenue beat(12)6
Avg Revenue beat(12)41.59%
Revenue beat(16)9
Avg Revenue beat(16)34.43%
PT rev (1m)-1.18%
PT rev (3m)-1.18%
EPS NQ rev (1m)4.13%
EPS NQ rev (3m)-7.87%
EPS NY rev (1m)-1.29%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 8.13 | ||
| P/S | 0.58 | ||
| P/FCF | 4.36 | ||
| P/OCF | 4.36 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.96
EY12.94%
EPS(NY)0.91
Fwd EY12.3%
FCF(TTM)1.7
FCFY22.93%
OCF(TTM)1.7
OCFY22.93%
SpS12.89
BVpS18.3
TBVpS18.3
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 10.8% | ||
| ROCE | 0.51% | ||
| ROIC | 0.36% | ||
| ROICexc | 0.36% | ||
| ROICexgc | 0.36% | ||
| OM | 8.2% | ||
| PM (TTM) | 15.34% | ||
| GM | 12.65% | ||
| FCFM | 13.2% |
ROA(3y)0.5%
ROA(5y)-5.5%
ROE(3y)2.11%
ROE(5y)-17.96%
ROIC(3y)0.46%
ROIC(5y)0.63%
ROICexc(3y)0.47%
ROICexc(5y)0.65%
ROICexgc(3y)0.47%
ROICexgc(5y)0.65%
ROCE(3y)0.86%
ROCE(5y)1.79%
ROICexcg growth 3Y-32.89%
ROICexcg growth 5Y-27.81%
ROICexc growth 3Y-32.83%
ROICexc growth 5Y-27.79%
OM growth 3Y-26.02%
OM growth 5Y-27.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-28.72%
GM growth 5Y-22.35%
F-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.82 | ||
| Debt/FCF | 127.1 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.11 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 86.09% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | -0.13 |
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)74.55%
EPS 3Y-54.93%
EPS 5Y-48.04%
EPS Q2Q%221.21%
EPS Next Y304.74%
EPS Next 2Y91.09%
EPS Next 3Y64.62%
EPS Next 5YN/A
Revenue 1Y (TTM)58.43%
Revenue growth 3Y51.75%
Revenue growth 5Y10.71%
Sales Q2Q%29.79%
Revenue Next Year40.09%
Revenue Next 2Y29.96%
Revenue Next 3Y20.9%
Revenue Next 5YN/A
EBIT growth 1Y56.76%
EBIT growth 3Y12.26%
EBIT growth 5Y-19.43%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y115.53%
FCF growth 3Y88.51%
FCF growth 5YN/A
OCF growth 1Y115.53%
OCF growth 3Y88.51%
OCF growth 5Y-18.45%