ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
21.84 USD
-0.23 (-1.04%)
21.98 USD
+0.14 (+0.64%)
NLY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of NLY while its profitability can be described as average. NLY scores decently on growth, while it is valued quite cheap. This could make 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.
NLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NLY's Return On Assets of 0.51% is fine compared to the rest of the industry. NLY outperforms 69.35% of its industry peers.
NLY's Return On Equity of 4.30% is fine compared to the rest of the industry. NLY outperforms 69.35% of its industry peers.
NLY has a Return On Invested Capital of 0.55%. This is in the better half of the industry: NLY outperforms 64.52% 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
With a decent Profit Margin value of 10.25%, NLY is doing good in the industry, outperforming 69.35% of the companies in the same industry.
NLY's Profit Margin has declined in the last couple of years.
NLY's Operating Margin of 13.53% is fine compared to the rest of the industry. NLY outperforms 67.74% of its industry peers.
NLY's Operating Margin has declined in the last couple of years.
The Gross Margin of NLY (16.85%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NLY is destroying value.
NLY has more shares outstanding than it did 1 year ago.
NLY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NLY is higher compared to a year ago.
2.2 Solvency
NLY has an Altman-Z score of -0.74. This is a bad value and indicates that NLY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.74, NLY is doing worse than 74.19% of the companies in the same industry.
NLY has a debt to FCF ratio of 188.60. This is a negative value and a sign of low solvency as NLY would need 188.60 years to pay back of all of its debts.
NLY has a Debt to FCF ratio of 188.60. This is in the lower half of the industry: NLY underperforms 66.13% 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.
Looking at the Debt to Equity ratio, with a value of 7.16, NLY is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Altman-Z | -0.74 |
ROIC/WACC0.1
WACC5.35%
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.
With a Current ratio value of 0.06, NLY is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
NLY has a Quick 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.
Looking at the Quick ratio, with a value of 0.06, NLY is doing worse than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
NLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.39%.
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.
The Revenue has grown by 39.01% in the past year. This is a very strong growth!
The Revenue has been growing by 45.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)6.39%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%7.35%
Revenue 1Y (TTM)39.01%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.52%
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 3.28% on average per year.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y7.88%
EPS Next 2Y5.07%
EPS Next 3Y3.28%
EPS Next 5YN/A
Revenue Next Year15.49%
Revenue Next 2Y8.3%
Revenue Next 3Y3.16%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.72, the valuation of NLY can be described as very cheap.
NLY's Price/Earnings ratio is rather cheap when compared to the industry. NLY is cheaper than 85.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of NLY to the average of the S&P500 Index (27.20), we can say NLY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.33 indicates a rather cheap valuation of NLY.
Based on the Price/Forward Earnings ratio, NLY is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.71. NLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 7.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaper than 88.71% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NLY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.62 | ||
| EV/EBITDA | 49.02 |
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.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y5.07%
EPS Next 3Y3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.64%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is a higher than the industry average which is at 11.50.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.64% |
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.
NLY has decreased its dividend recently.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
285.38% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP285.38%
EPS Next 2Y5.07%
EPS Next 3Y3.28%
21.84
-0.23 (-1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.12%
Inst Owner Change-1.47%
Ins Owners0.11%
Ins Owner Change-4.05%
Market Cap14.02B
Analysts77.78
Price Target21.45 (-1.79%)
Short Float %2.13%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.64% |
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)0.48%
PT rev (3m)2.69%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.19%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)4.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 7.33 | ||
| P/S | 2.5 | ||
| P/FCF | 27.62 | ||
| P/OCF | 12.09 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 49.02 |
EPS(TTM)2.83
EY12.96%
EPS(NY)2.98
Fwd EY13.65%
FCF(TTM)0.79
FCFY3.62%
OCF(TTM)1.81
OCFY8.27%
SpS8.74
BVpS20.84
TBVpS20.83
PEG (NY)0.98
PEG (5Y)N/A
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
ROICexcg growth 3Y-34.31%
ROICexcg 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
WACC5.35%
ROIC/WACC0.1
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)6.39%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%7.35%
EPS Next Y7.88%
EPS Next 2Y5.07%
EPS Next 3Y3.28%
EPS Next 5YN/A
Revenue 1Y (TTM)39.01%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.52%
Revenue Next Year15.49%
Revenue Next 2Y8.3%
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