ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
21.7 USD
+0.19 (+0.88%)
21.6 USD
-0.1 (-0.46%)
Taking everything into account, NLY scores 4 out of 10 in our fundamental rating. NLY was compared to 68 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on NLY.
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.
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
The Return On Assets of NLY (0.51%) is better than 69.12% of its industry peers.
The Return On Equity of NLY (4.30%) is better than 72.06% of its industry peers.
NLY has a better Return On Invested Capital (0.55%) than 66.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 4.3% | ||
| ROIC | 0.55% |
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
The Profit Margin of NLY (10.25%) is better than 70.59% of its industry peers.
NLY's Profit Margin has declined in the last couple of years.
NLY has a Operating Margin of 13.53%. This is in the better half of the industry: NLY outperforms 69.12% of its industry peers.
In the last couple of years the Operating Margin of NLY has declined.
NLY has a Gross Margin (16.85%) which is in line with its industry peers.
NLY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.53% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.85% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLY is destroying value.
Compared to 1 year ago, NLY has more shares outstanding
Compared to 5 years ago, NLY has more shares outstanding
Compared to 1 year ago, NLY has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.74, we must say that NLY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.74, NLY is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of NLY is 188.60, which is on the high side as it means it would take NLY, 188.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NLY (188.60) is worse than 64.71% of its industry peers.
NLY has a Debt/Equity ratio of 7.16. This is a high value indicating a heavy dependency on external financing.
NLY has a Debt to Equity ratio of 7.16. This is in the lower half of the industry: NLY underperforms 66.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Altman-Z | -0.74 |
ROIC/WACC0.11
WACC5.15%
2.3 Liquidity
NLY has a Current Ratio of 0.06. 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 (0.06) than 76.47% of its industry peers.
A Quick Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
NLY has a worse Quick ratio (0.06) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
NLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.02%, which is quite good.
NLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.74% yearly.
NLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.20%.
NLY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.38% yearly.
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%24.66%
3.2 Future
NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.34% yearly.
Based on estimates for the next years, NLY will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.
EPS Next Y8.36%
EPS Next 2Y5.66%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue Next Year16.05%
Revenue Next 2Y9.07%
Revenue Next 3Y3.16%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.48, the valuation of NLY can be described as very cheap.
Based on the Price/Earnings ratio, NLY is valued cheaper than 83.82% of the companies in the same industry.
NLY is valuated cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.20, the valuation of NLY can be described as very cheap.
Based on the Price/Forward Earnings ratio, NLY is valued a bit cheaper than 79.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, NLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
89.71% of the companies in the same industry are more expensive than NLY, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as NLY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.44 | ||
| EV/EBITDA | 48.56 |
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.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y5.66%
EPS Next 3Y3.34%
5. Dividend
5.1 Amount
NLY has a Yearly Dividend Yield of 13.50%, which is a nice return.
NLY's Dividend Yield is comparable with the industry average which is at 13.16.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.5% |
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
NLY pays out 285.38% of its income as dividend. This is not a sustainable payout ratio.
DP285.38%
EPS Next 2Y5.66%
EPS Next 3Y3.34%
21.7
+0.19 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.55%
Inst Owner Change-1.91%
Ins Owners0.1%
Ins Owner Change-4.05%
Market Cap13.93B
Revenue(TTM)6.42B
Net Income(TTM)575.07M
Analysts77.78
Price Target22.21 (2.35%)
Short Float %1.54%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.5% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP285.38%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.45%
Min EPS beat(2)0.77%
Max EPS beat(2)2.14%
EPS beat(4)3
Avg EPS beat(4)1.86%
Min EPS beat(4)-2.22%
Max EPS beat(4)6.77%
EPS beat(8)5
Avg EPS beat(8)0.99%
EPS beat(12)7
Avg EPS beat(12)1.29%
EPS beat(16)11
Avg EPS beat(16)3.76%
Revenue beat(2)2
Avg Revenue beat(2)3.91%
Min Revenue beat(2)0.08%
Max Revenue beat(2)7.74%
Revenue beat(4)4
Avg Revenue beat(4)4.9%
Min Revenue beat(4)0.08%
Max Revenue beat(4)7.74%
Revenue beat(8)7
Avg Revenue beat(8)4.27%
Revenue beat(12)8
Avg Revenue beat(12)-13.15%
Revenue beat(16)12
Avg Revenue beat(16)25.03%
PT rev (1m)3.56%
PT rev (3m)5.31%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 7.2 | ||
| P/S | 2.48 | ||
| P/FCF | 27.44 | ||
| P/OCF | 12.01 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 48.56 |
EPS(TTM)2.9
EY13.36%
EPS(NY)3.01
Fwd EY13.89%
FCF(TTM)0.79
FCFY3.64%
OCF(TTM)1.81
OCFY8.33%
SpS8.74
BVpS20.84
TBVpS20.83
PEG (NY)0.9
PEG (5Y)N/A
Graham Number36.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 4.3% | ||
| ROCE | 1.86% | ||
| ROIC | 0.55% | ||
| ROICexc | 0.56% | ||
| ROICexgc | 0.56% | ||
| OM | 13.53% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.85% | ||
| FCFM | 9.05% |
ROA(3y)0.29%
ROA(5y)0.54%
ROE(3y)1.73%
ROE(5y)3.03%
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-34.31%
ROICexgc growth 5YN/A
ROICexc growth 3Y-34.32%
ROICexc growth 5YN/A
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
F-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Debt/EBITDA | 120.97 | ||
| Cap/Depr | 2006.36% | ||
| Cap/Sales | 11.63% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 146.56% | ||
| Profit Quality | 88.29% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | -0.74 |
F-Score7
WACC5.15%
ROIC/WACC0.11
Cap/Depr(3y)3082.57%
Cap/Depr(5y)2232.96%
Cap/Sales(3y)20.64%
Cap/Sales(5y)15.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.02%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%10.61%
EPS Next Y8.36%
EPS Next 2Y5.66%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%24.66%
Revenue Next Year16.05%
Revenue Next 2Y9.07%
Revenue Next 3Y3.16%
Revenue Next 5YN/A
EBIT growth 1Y258.52%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-77.28%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y-58.16%
OCF growth 3Y2.47%
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 4 / 10 to NLY.
What is the valuation status for 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 4 / 10.
Can you provide the PE and PB ratios for NLY stock?
The Price/Earnings (PE) ratio for ANNALY CAPITAL MANAGEMENT IN (NLY) is 7.48 and the Price/Book (PB) ratio is 1.04.
What is the earnings growth outlook for ANNALY CAPITAL MANAGEMENT IN?
The Earnings per Share (EPS) of ANNALY CAPITAL MANAGEMENT IN (NLY) is expected to grow by 8.36% in the next year.