ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLY - US0357108390 - REIT
23.88 USD
+0.02 (+0.08%)
23.9461 USD
+0.07 (+0.28%)
Overall NLY gets a fundamental rating of 5 out of 10. We evaluated NLY against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NLY has a medium profitability rating, but doesn't score so well on its financial health evaluation. NLY is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- In the past year NLY was profitable.
- NLY had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: NLY reported negative net income in multiple years.
- Each year in the past 5 years NLY had a positive operating cash flow.
1.2 Ratios
- NLY has a better Return On Assets (1.07%) than 83.82% of its industry peers.
- NLY has a Return On Equity of 9.00%. This is amongst the best in the industry. NLY outperforms 94.12% of its industry peers.
- NLY has a better Return On Invested Capital (0.98%) than 80.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9% | ||
| ROIC | 0.98% |
ROA(3y)0.29%
ROA(5y)0.54%
ROE(3y)1.73%
ROE(5y)3.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- NLY has a better Profit Margin (20.91%) than 88.24% of its industry peers.
- In the last couple of years the Profit Margin of NLY has declined.
- NLY has a Operating Margin of 23.66%. This is amongst the best in the industry. NLY outperforms 85.29% of its industry peers.
- In the last couple of years the Operating Margin of NLY has declined.
- With a Gross Margin value of 26.66%, NLY perfoms like the industry average, outperforming 48.53% of the companies in the same 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-42.02%
OM growth 5YN/A
PM growth 3Y-42.61%
PM growth 5YN/A
GM growth 3Y-39.27%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NLY 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.
- NLY has a worse debt/assets ratio than last year.
2.2 Solvency
- NLY has an Altman-Z score of -0.71. This is a bad value and indicates that NLY is not financially healthy and even has some risk of bankruptcy.
- NLY has a Altman-Z score of -0.71. This is in the lower half of the industry: NLY underperforms 75.00% of its industry peers.
- The Debt to FCF ratio of NLY is 53.91, which is on the high side as it means it would take NLY, 53.91 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 53.91, NLY is doing good in the industry, outperforming 77.94% of the companies in the same industry.
- NLY has a Debt/Equity ratio of 7.18. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 7.18, NLY is not doing good in the industry: 60.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.19
WACC5.12%
2.3 Liquidity
- A Current Ratio of 0.04 indicates that NLY may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.04, NLY is doing worse than 85.29% of the companies in the same industry.
- NLY has a Quick 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 Quick ratio of 0.04. This is amonst the worse of the industry: NLY underperforms 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.02% over the past year.
- Measured over the past years, NLY shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.74% on average per year.
- NLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.20%.
- Measured over the past years, NLY shows a very strong growth in Revenue. The Revenue has been growing by 45.38% on average per year.
EPS 1Y (TTM)9.02%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%10.61%
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%75.53%
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 3.22% on average per year.
- Based on estimates for the next years, NLY will show a quite strong growth in Revenue. The Revenue will grow by 11.76% on average per year.
EPS Next Y8.73%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue Next Year18.77%
Revenue Next 2Y12.85%
Revenue Next 3Y11.76%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.23, the valuation of NLY can be described as very reasonable.
- 82.35% of the companies in the same industry are more expensive than NLY, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of NLY to the average of the S&P500 Index (27.21), we can say NLY is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.92, which indicates a rather cheap valuation of NLY.
- 73.53% of the companies in the same industry are more expensive than NLY, based on the Price/Forward Earnings ratio.
- NLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 7.92 |
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 94.12% of the companies listed in the same industry.
- 83.82% 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 | 8.22 | ||
| EV/EBITDA | 28.32 |
4.3 Compensation for Growth
- NLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- NLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y5.66%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 11.75%, NLY is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.01, NLY has a dividend in line with its industry peers.
- 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 | 11.75% |
5.2 History
- The dividend of NLY decreases each year by -10.87%.
- NLY has paid a dividend for at least 10 years, which is a reliable track record.
- NLY has decreased its dividend recently.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 131.25% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
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 8 / 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 8.23 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 1 / 10.