ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
NYSE:NLY • US0357108390
22.98 USD
-0.09 (-0.39%)
At close: Feb 17, 2026
23.03 USD
+0.05 (+0.22%)
After Hours: 2/17/2026, 8:04:00 PM
Overall NLY gets a fundamental rating of 5 out of 10. We evaluated NLY against 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While NLY is still in line with the averages on profitability rating, there are concerns on its financial health. NLY is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- NLY had positive earnings in the past year.
- NLY had a positive operating cash flow in the past year.
- NLY had positive earnings in 4 of the past 5 years.
- Of the past 5 years NLY 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 1.07%, NLY belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.00%, NLY belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 0.98%, NLY belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9% | ||
| ROIC | 0.98% |
ROA(3y)0.09%
ROA(5y)1.05%
ROE(3y)0.83%
ROE(5y)6.83%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 20.91%, NLY belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
- NLY's Profit Margin has declined in the last couple of years.
- NLY has a better Operating Margin (23.66%) than 85.71% of its industry peers.
- In the last couple of years the Operating Margin of NLY has declined.
- NLY has a Gross Margin (26.66%) which is comparable to the rest of the industry.
- NLY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.66% | ||
| PM (TTM) | 20.91% | ||
| GM | 26.66% |
OM growth 3Y-19.76%
OM growth 5YN/A
PM growth 3Y-19.07%
PM growth 5YN/A
GM growth 3Y-19.28%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- NLY 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 NLY has been increased compared to 1 year ago.
- The number of shares outstanding for NLY has been increased compared to 5 years ago.
- Compared to 1 year ago, NLY has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.71, we must say that NLY is in the distress zone and has some risk of bankruptcy.
- NLY's Altman-Z score of -0.71 is on the low side compared to the rest of the industry. NLY is outperformed by 74.29% of its industry peers.
- NLY has a debt to FCF ratio of 53.91. This is a negative value and a sign of low solvency as NLY would need 53.91 years to pay back of all of its debts.
- NLY has a better Debt to FCF ratio (53.91) than 78.57% of its industry peers.
- NLY has a Debt/Equity ratio of 7.18. This is a high value indicating a heavy dependency on external financing.
- NLY has a Debt to Equity ratio (7.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.19
WACC5.1%
2.3 Liquidity
- NLY has a Current Ratio of 0.04. This is a bad value and indicates that NLY is not financially healthy enough and could expect problems in meeting its short term obligations.
- NLY has a worse Current ratio (0.04) than 85.71% of its industry peers.
- A Quick Ratio of 0.04 indicates that NLY may have some problems paying its short term obligations.
- NLY has a worse Quick ratio (0.04) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
- NLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.15%, which is quite good.
- Measured over the past years, NLY shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.87% on average per year.
- NLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.06%.
- Measured over the past years, NLY shows a very strong growth in Revenue. The Revenue has been growing by 82.65% on average per year.
EPS 1Y (TTM)8.15%
EPS 3Y-11.9%
EPS 5Y-7.87%
EPS Q2Q%2.78%
Revenue 1Y (TTM)22.06%
Revenue growth 3Y29.74%
Revenue growth 5Y82.65%
Sales Q2Q%26.28%
3.2 Future
- Based on estimates for the next years, NLY will show a small growth in Earnings Per Share. The EPS will grow by 0.96% on average per year.
- NLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.58% yearly.
EPS Next Y3.08%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
EPS Next 5YN/A
Revenue Next Year15.65%
Revenue Next 2Y8.95%
Revenue Next 3Y14.58%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.87, which indicates a rather cheap valuation of NLY.
- Based on the Price/Earnings ratio, NLY is valued a bit cheaper than 80.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.16. NLY is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.64, which indicates a rather cheap valuation of NLY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NLY indicates a somewhat cheap valuation: NLY is cheaper than 75.71% of the companies listed in the same industry.
- NLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 7.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 94.29% of the companies listed in the same industry.
- 82.86% of the companies in the same industry are more expensive than NLY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.18 | ||
| EV/EBITDA | 28.33 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NLY does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of NLY may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y0.82%
EPS Next 3Y0.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.98%, NLY is a good candidate for dividend investing.
- NLY's Dividend Yield is slightly below the industry average, which is at 10.46.
- NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.98% |
5.2 History
- The dividend of NLY decreases each year by -10.87%.
- NLY has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of NLY decreased recently.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- NLY pays out 131.25% of its income as dividend. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
22.98
-0.09 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners61.11%
Inst Owner Change3.65%
Ins Owners0.08%
Ins Owner Change-0.84%
Market Cap16.25B
Revenue(TTM)7.13B
Net Income(TTM)1.34B
Analysts78.82
Price Target24.68 (7.4%)
Short Float %1.88%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.98% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP131.25%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.2%
Max EPS beat(2)0.77%
EPS beat(4)4
Avg EPS beat(4)2.47%
Min EPS beat(4)0.2%
Max EPS beat(4)6.77%
EPS beat(8)6
Avg EPS beat(8)1.72%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)3.53%
Revenue beat(2)2
Avg Revenue beat(2)8.76%
Min Revenue beat(2)7.74%
Max Revenue beat(2)9.78%
Revenue beat(4)4
Avg Revenue beat(4)5.69%
Min Revenue beat(4)0.08%
Max Revenue beat(4)9.78%
Revenue beat(8)7
Avg Revenue beat(8)5.14%
Revenue beat(12)9
Avg Revenue beat(12)-6.16%
Revenue beat(16)12
Avg Revenue beat(16)23.84%
PT rev (1m)9.13%
PT rev (3m)11.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)7.86%
Revenue NY rev (3m)10.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 7.64 | ||
| P/S | 2.53 | ||
| P/FCF | 8.18 | ||
| P/OCF | 5.69 | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 28.33 |
EPS(TTM)2.92
EY12.71%
EPS(NY)3.01
Fwd EY13.1%
FCF(TTM)2.81
FCFY12.22%
OCF(TTM)4.04
OCFY17.59%
SpS9.08
BVpS21.09
TBVpS21.08
PEG (NY)2.56
PEG (5Y)N/A
Graham Number37.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9% | ||
| ROCE | 3.36% | ||
| ROIC | 0.98% | ||
| ROICexc | 1% | ||
| ROICexgc | 1% | ||
| OM | 23.66% | ||
| PM (TTM) | 20.91% | ||
| GM | 26.66% | ||
| FCFM | 30.94% |
ROA(3y)0.09%
ROA(5y)1.05%
ROE(3y)0.83%
ROE(5y)6.83%
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
ROICexgc growth 3Y-12.29%
ROICexgc growth 5YN/A
ROICexc growth 3Y-12.2%
ROICexc growth 5YN/A
OM growth 3Y-19.76%
OM growth 5YN/A
PM growth 3Y-19.07%
PM growth 5YN/A
GM growth 3Y-19.28%
GM growth 5YN/A
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Debt/EBITDA | 68.98 | ||
| Cap/Depr | 2620.45% | ||
| Cap/Sales | 13.58% | ||
| Interest Coverage | 0.44 | ||
| Cash Conversion | 184.16% | ||
| Profit Quality | 147.99% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.71 |
F-Score6
WACC5.1%
ROIC/WACC0.19
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)8.15%
EPS 3Y-11.9%
EPS 5Y-7.87%
EPS Q2Q%2.78%
EPS Next Y3.08%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
EPS Next 5YN/A
Revenue 1Y (TTM)22.06%
Revenue growth 3Y29.74%
Revenue growth 5Y82.65%
Sales Q2Q%26.28%
Revenue Next Year15.65%
Revenue Next 2Y8.95%
Revenue Next 3Y14.58%
Revenue Next 5YN/A
EBIT growth 1Y885.5%
EBIT growth 3Y4.11%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y995.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y224.52%
OCF growth 3YN/A
OCF growth 5YN/A
ANNALY CAPITAL MANAGEMENT IN / NLY FAQ
What is the ChartMill fundamental rating of ANNALY CAPITAL MANAGEMENT IN (NLY) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NLY.
What is the valuation status of ANNALY CAPITAL MANAGEMENT IN (NLY) stock?
ChartMill assigns a valuation rating of 7 / 10 to ANNALY CAPITAL MANAGEMENT IN (NLY). This can be considered as Undervalued.
Can you provide the profitability details for ANNALY CAPITAL MANAGEMENT IN?
ANNALY CAPITAL MANAGEMENT IN (NLY) has a profitability rating of 6 / 10.
What is the valuation of ANNALY CAPITAL MANAGEMENT IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ANNALY CAPITAL MANAGEMENT IN (NLY) is 7.87 and the Price/Book (PB) ratio is 1.09.
What is the financial health of ANNALY CAPITAL MANAGEMENT IN (NLY) stock?
The financial health rating of ANNALY CAPITAL MANAGEMENT IN (NLY) is 2 / 10.