ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLY - US0357108390 - REIT
23.72 USD
-0.68 (-2.79%)
23.7563 USD
+0.04 (+0.15%)
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. While NLY is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- 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.
- In the past 5 years NLY always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 1.07%, NLY belongs to the best of the industry, outperforming 83.82% of the companies in the same industry.
- 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's Return On Invested Capital of 0.98% is amongst the best of the industry. NLY outperforms 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
- With an excellent Profit Margin value of 20.91%, NLY belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- NLY's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 23.66%, NLY belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of NLY has declined.
- NLY has a Gross Margin of 26.66%. This is comparable to the rest of the industry: NLY outperforms 48.53% of its industry peers.
- 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
- 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
- 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.
- 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's Debt to FCF ratio of 53.91 is fine compared to the rest of the industry. NLY outperforms 77.94% of its industry peers.
- A Debt/Equity ratio of 7.18 is on the high side and indicates that NLY has dependencies on debt 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
WACC5.13%
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.
- The Current ratio of NLY (0.04) is worse than 85.29% of its industry peers.
- A Quick Ratio of 0.04 indicates that NLY may have some problems paying its short term obligations.
- With a Quick ratio value of 0.04, NLY is not doing good in the industry: 85.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
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.
- 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%.
- The Revenue has been growing by 45.38% on average over the past years. This is a very strong growth!
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
- NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.22% yearly.
- 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
- 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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.18, which indicates a very decent valuation of NLY.
- Compared to the rest of the industry, the Price/Earnings ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 82.35% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of NLY to the average of the S&P500 Index (26.94), we can say NLY is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.87, the valuation of NLY can be described as very cheap.
- NLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NLY is cheaper than 72.06% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. NLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaper than 94.12% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 80.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 28.56 |
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.
- 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
- NLY has a Yearly Dividend Yield of 11.75%, which is a nice return.
- 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.75% |
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%
23.72
-0.68 (-2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners61.11%
Inst Owner Change0.25%
Ins Owners0.08%
Ins Owner Change-3.34%
Market Cap16.20B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target23.25 (-1.98%)
Short Float %2.93%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.75% |
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)3.15%
PT rev (3m)8.41%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-0.23%
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)-0.09%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.87 | ||
| P/S | 2.52 | ||
| P/FCF | 8.16 | ||
| P/OCF | 5.67 | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 28.56 |
EPS(TTM)2.9
EY12.23%
EPS(NY)3.01
Fwd EY12.71%
FCF(TTM)2.91
FCFY12.25%
OCF(TTM)4.18
OCFY17.63%
SpS9.4
BVpS21.83
TBVpS21.82
PEG (NY)0.94
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
WACC5.13%
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 Year18.77%
Revenue Next 2Y12.85%
Revenue Next 3Y11.76%
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 8.18 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.