ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
NYSE:NLY - New York Stock Exchange, Inc. - US0357108390 - REIT - Currency: USD
Overall NLY gets a fundamental rating of 3 out of 10. We evaluated NLY against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NLY has a bad profitability rating. Also its financial health evaluation is rather negative. NLY may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
NLY had positive earnings in the past year.
In the past year NLY had a positive cash flow from operations.
In multiple years NLY reported negative net income over the last 5 years.
Each year in the past 5 years NLY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.48%, NLY is in line with its industry, outperforming 59.09% of the companies in the same industry.
NLY's Return On Equity of 3.91% is in line compared to the rest of the industry. NLY outperforms 56.06% of its industry peers.
NLY has a better Return On Invested Capital (0.54%) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.91% | ||
| ROIC | 0.54% |
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 Profit Margin (9.21%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NLY has declined.
With a Operating Margin value of 12.70%, NLY perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
NLY's Operating Margin has declined in the last couple of years.
NLY has a worse Gross Margin (15.98%) than 65.15% of its industry peers.
NLY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.7% | ||
| PM (TTM) | 9.21% | ||
| GM | 15.98% |
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
NLY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NLY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NLY has more shares outstanding
NLY has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.76, we must say that NLY is in the distress zone and has some risk of bankruptcy.
NLY's Altman-Z score of -0.76 is on the low side compared to the rest of the industry. NLY is outperformed by 74.24% of its industry peers.
The Debt to FCF ratio of NLY is 122.75, which is on the high side as it means it would take NLY, 122.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 122.75, NLY is in line with its industry, outperforming 43.94% of the companies in the same industry.
NLY has a Debt/Equity ratio of 6.82. This is a high value indicating a heavy dependency on external financing.
NLY has a Debt to Equity ratio of 6.82. This is in the lower half of the industry: NLY underperforms 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.82 | ||
| Debt/FCF | 122.76 | ||
| Altman-Z | -0.76 |
ROIC/WACC0.1
WACC5.17%
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's Current ratio of 0.04 is on the low side compared to the rest of the industry. NLY is outperformed by 84.85% of its industry peers.
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.
The Quick ratio of NLY (0.04) is worse than 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
NLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.96%.
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 37.29%.
The Revenue has been growing by 45.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.96%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%12.5%
Revenue 1Y (TTM)37.29%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.34%
3.2 Future
The Earnings Per Share is expected to grow by 3.40% on average over the next years.
NLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
EPS Next Y7.66%
EPS Next 2Y4.86%
EPS Next 3Y3.4%
EPS Next 5YN/A
Revenue Next Year9.82%
Revenue Next 2Y5.68%
Revenue Next 3Y3.15%
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
A Price/Earnings ratio of 7.09 indicates a rather cheap valuation of NLY.
Based on the Price/Earnings ratio, NLY is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
NLY is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.64, the valuation of NLY can be described as very cheap.
Based on the Price/Forward Earnings ratio, NLY is valued cheaper than 89.39% of the companies in the same industry.
NLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaper than 89.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NLY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.53 | ||
| EV/EBITDA | 47.07 |
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)0.93
PEG (5Y)N/A
EPS Next 2Y4.86%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
NLY has a Yearly Dividend Yield of 9.09%, which is a nice return.
Compared to an average industry Dividend Yield of 11.54, NLY is paying slightly less dividend.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.09% |
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 303.72% of its income as dividend. This is not a sustainable payout ratio.
DP303.72%
EPS Next 2Y4.86%
EPS Next 3Y3.4%
19.72
-0.09 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.29%
Inst Owner Change0.09%
Ins Owners0.12%
Ins Owner Change5.25%
Market Cap11.93B
Analysts77.78
Price Target20.88 (5.88%)
Short Float %1.73%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.09% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP303.72%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.45%
Min EPS beat(2)2.14%
Max EPS beat(2)6.77%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-2.22%
Max EPS beat(4)6.77%
EPS beat(8)4
Avg EPS beat(8)0.4%
EPS beat(12)7
Avg EPS beat(12)3.42%
EPS beat(16)11
Avg EPS beat(16)4.31%
Revenue beat(2)2
Avg Revenue beat(2)2.63%
Min Revenue beat(2)0.08%
Max Revenue beat(2)5.18%
Revenue beat(4)4
Avg Revenue beat(4)5.07%
Min Revenue beat(4)0.08%
Max Revenue beat(4)8.41%
Revenue beat(8)7
Avg Revenue beat(8)3.82%
Revenue beat(12)8
Avg Revenue beat(12)-3.08%
Revenue beat(16)11
Avg Revenue beat(16)16.23%
PT rev (1m)0%
PT rev (3m)-3.42%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)1.21%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)2.28%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.64 | ||
| P/S | 2.16 | ||
| P/FCF | 16.53 | ||
| P/OCF | 8.19 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 47.07 |
EPS(TTM)2.78
EY14.1%
EPS(NY)2.97
Fwd EY15.05%
FCF(TTM)1.19
FCFY6.05%
OCF(TTM)2.41
OCFY12.21%
SpS9.13
BVpS21.48
TBVpS21.46
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.91% | ||
| ROCE | 1.85% | ||
| ROIC | 0.54% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 0.56% | ||
| OM | 12.7% | ||
| PM (TTM) | 9.21% | ||
| GM | 15.98% | ||
| FCFM | 13.07% |
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-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.82 | ||
| Debt/FCF | 122.76 | ||
| Debt/EBITDA | 120.74 | ||
| Cap/Depr | 2246.95% | ||
| Cap/Sales | 13.3% | ||
| Interest Coverage | 0.19 | ||
| Cash Conversion | 198.42% | ||
| Profit Quality | 141.96% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.76 |
F-Score6
WACC5.17%
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)2.96%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%12.5%
EPS Next Y7.66%
EPS Next 2Y4.86%
EPS Next 3Y3.4%
EPS Next 5YN/A
Revenue 1Y (TTM)37.29%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.34%
Revenue Next Year9.82%
Revenue Next 2Y5.68%
Revenue Next 3Y3.15%
Revenue Next 5YN/A
EBIT growth 1Y328.86%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.53%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y-37.33%
OCF growth 3Y2.47%
OCF growth 5YN/A