ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLY - US0357108390 - REIT
23.19 USD
-0.11 (-0.47%)
23.21 USD
+0.02 (+0.09%)
NLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. NLY scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
NLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NLY (1.07%) is better 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.
Looking at the Return On Invested Capital, with a value of 0.98%, NLY belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
| 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
The Profit Margin of NLY (20.91%) is better than 88.24% of its industry peers.
NLY's Profit Margin has declined in the last couple of years.
NLY's Operating Margin of 23.66% is amongst the best of the industry. NLY outperforms 85.29% of its industry peers.
In the last couple of years the Operating Margin of NLY has declined.
The Gross Margin of NLY (26.66%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NLY has declined.
| 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.
NLY has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NLY has been increased compared to 5 years ago.
The debt/assets ratio for NLY is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of -0.71, NLY is doing worse than 75.00% of the companies in the same industry.
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 Debt to FCF ratio of 53.91. This is in the better half of the industry: NLY outperforms 77.94% 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 worse Debt to Equity ratio (7.18) than 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.19
WACC5.15%
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 Current ratio of 0.04. This is amonst the worse of the industry: NLY underperforms 85.29% 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.
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.
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%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.
NLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.97% yearly.
EPS Next Y8.73%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue Next Year18.88%
Revenue Next 2Y13.32%
Revenue Next 3Y9.97%
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 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 8.00, 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 82.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. NLY is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.69, 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.
When comparing the Price/Forward Earnings ratio of NLY to the average of the S&P500 Index (23.98), we can say NLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.69 |
4.2 Price Multiples
94.12% of the companies in the same industry are more expensive than NLY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NLY is valued cheaply inside the industry as 85.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.98 | ||
| EV/EBITDA | 28.07 |
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.
NLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y5.66%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
NLY has a Yearly Dividend Yield of 12.04%, which is a nice return.
NLY's Dividend Yield is comparable with the industry average which is at 10.90.
Compared to an average S&P500 Dividend Yield of 1.92, NLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.04% |
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
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%
23.19
-0.11 (-0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.11%
Inst Owner Change0.14%
Ins Owners0.08%
Ins Owner Change-3.34%
Market Cap15.84B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target22.62 (-2.46%)
Short Float %1.92%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.04% |
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)31.15%
Min Revenue beat(2)7.74%
Max Revenue beat(2)54.57%
Revenue beat(4)4
Avg Revenue beat(4)16.89%
Min Revenue beat(4)0.08%
Max Revenue beat(4)54.57%
Revenue beat(8)7
Avg Revenue beat(8)10.73%
Revenue beat(12)9
Avg Revenue beat(12)-2.42%
Revenue beat(16)12
Avg Revenue beat(16)26.64%
PT rev (1m)0.34%
PT rev (3m)5.46%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.69 | ||
| P/S | 2.47 | ||
| P/FCF | 7.98 | ||
| P/OCF | 5.54 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 28.07 |
EPS(TTM)2.9
EY12.51%
EPS(NY)3.01
Fwd EY13%
FCF(TTM)2.91
FCFY12.53%
OCF(TTM)4.18
OCFY18.04%
SpS9.4
BVpS21.83
TBVpS21.82
PEG (NY)0.92
PEG (5Y)N/A
Graham Number37.74
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)0.29%
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-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
WACC5.15%
ROIC/WACC0.19
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 Y8.73%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue 1Y (TTM)32.2%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%75.53%
Revenue Next Year18.88%
Revenue Next 2Y13.32%
Revenue Next 3Y9.97%
Revenue Next 5YN/A
EBIT growth 1Y885.5%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.4%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y30.46%
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 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 and the Price/Book (PB) ratio is 1.06.
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.