ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
NYSE:NLY - New York Stock Exchange, Inc. - US0357108390 - REIT - Currency: USD
NLY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on NLY.
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.
Each year in the past 5 years NLY had a positive operating cash flow.
1.2 Ratios
NLY's Return On Assets of 0.82% is in line compared to the rest of the industry. NLY outperforms 60.00% of its industry peers.
NLY's Return On Equity of 6.72% is fine compared to the rest of the industry. NLY outperforms 73.85% of its industry peers.
With a decent Return On Invested Capital value of 0.79%, NLY is doing good in the industry, outperforming 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 6.72% | ||
| ROIC | 0.79% |
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 14.51%, NLY is doing good in the industry, outperforming 66.15% of the companies in the same industry.
NLY's Profit Margin has declined in the last couple of years.
NLY has a Operating Margin of 17.59%. This is in the better half of the industry: NLY outperforms 63.08% of its industry peers.
NLY's Operating Margin has declined in the last couple of years.
The Gross Margin of NLY (20.52%) is worse than 70.77% of its industry peers.
NLY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.59% | ||
| PM (TTM) | 14.51% | ||
| GM | 20.52% |
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
NLY has an Altman-Z score of -0.75. This is a bad value and indicates that NLY is not financially healthy and even has some risk of bankruptcy.
NLY's Altman-Z score of -0.75 is on the low side compared to the rest of the industry. NLY is outperformed by 76.92% of its industry peers.
The Debt to FCF ratio of NLY is 36.61, which is on the high side as it means it would take NLY, 36.61 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 36.61, NLY is doing good in the industry, outperforming 66.15% of the companies in the same industry.
A Debt/Equity ratio of 7.11 is on the high side and indicates that NLY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.11, NLY is doing worse than 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.11 | ||
| Debt/FCF | 36.61 | ||
| Altman-Z | -0.75 |
ROIC/WACC0.15
WACC5.11%
2.3 Liquidity
NLY has a Current Ratio of 0.07. 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 0.07 is on the low side compared to the rest of the industry. NLY is outperformed by 70.77% of its industry peers.
A Quick Ratio of 0.07 indicates that NLY may have some problems paying its short term obligations.
NLY has a Quick ratio of 0.07. This is in the lower half of the industry: NLY underperforms 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The earnings per share for NLY have decreased by -5.92% in the last year.
NLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.74% yearly.
The Revenue has grown by 141.58% 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)-5.92%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%5.88%
Revenue 1Y (TTM)141.58%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%35.19%
3.2 Future
NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.81% yearly.
The Revenue is expected to grow by 6.20% on average over the next years.
EPS Next Y6.02%
EPS Next 2Y3.92%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue Next Year12.09%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 7.26, the valuation of NLY can be described as very cheap.
Based on the Price/Earnings ratio, NLY is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
NLY is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.85 indicates a rather cheap valuation of NLY.
Based on the Price/Forward Earnings ratio, NLY is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
NLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NLY indicates a rather cheap valuation: NLY is cheaper than 92.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NLY is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.79 | ||
| EV/EBITDA | 30.28 |
4.3 Compensation for Growth
NLY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y3.92%
EPS Next 3Y2.81%
5. Dividend
5.1 Amount
NLY has a Yearly Dividend Yield of 14.80%, which is a nice return.
NLY's Dividend Yield is a higher than the industry average which is at 14.31.
NLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.8% |
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.
Dividend Growth(5Y)-10.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NLY pays out 176.28% of its income as dividend. This is not a sustainable payout ratio.
DP176.28%
EPS Next 2Y3.92%
EPS Next 3Y2.81%
19.6
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.28%
Inst Owner Change-0.39%
Ins Owners0.13%
Ins Owner Change7.49%
Market Cap11.71B
Analysts77.78
Price Target21.13 (7.81%)
Short Float %2.4%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.8% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP176.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.27%
Min EPS beat(2)-2.22%
Max EPS beat(2)6.77%
EPS beat(4)2
Avg EPS beat(4)1.61%
Min EPS beat(4)-2.22%
Max EPS beat(4)6.77%
EPS beat(8)4
Avg EPS beat(8)0.77%
EPS beat(12)7
Avg EPS beat(12)4.16%
EPS beat(16)11
Avg EPS beat(16)4.72%
Revenue beat(2)2
Avg Revenue beat(2)5.9%
Min Revenue beat(2)5.18%
Max Revenue beat(2)6.62%
Revenue beat(4)4
Avg Revenue beat(4)6.67%
Min Revenue beat(4)5.18%
Max Revenue beat(4)8.41%
Revenue beat(8)6
Avg Revenue beat(8)3.71%
Revenue beat(12)8
Avg Revenue beat(12)28.25%
Revenue beat(16)11
Avg Revenue beat(16)31.6%
PT rev (1m)-2.29%
PT rev (3m)-3.43%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)3.73%
EPS NY rev (1m)0.72%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)3.13%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.85 | ||
| P/S | 2.01 | ||
| P/FCF | 4.79 | ||
| P/OCF | 3.54 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 30.28 |
EPS(TTM)2.7
EY13.78%
EPS(NY)2.86
Fwd EY14.6%
FCF(TTM)4.1
FCFY20.9%
OCF(TTM)5.54
OCFY28.27%
SpS9.77
BVpS21.1
TBVpS21.09
PEG (NY)1.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 6.72% | ||
| ROCE | 2.96% | ||
| ROIC | 0.79% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 0.81% | ||
| OM | 17.59% | ||
| PM (TTM) | 14.51% | ||
| GM | 20.52% | ||
| FCFM | 41.91% |
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 Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.11 | ||
| Debt/FCF | 36.61 | ||
| Debt/EBITDA | 84.74 | ||
| Cap/Depr | 2843.32% | ||
| Cap/Sales | 14.78% | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | 313.1% | ||
| Profit Quality | 288.85% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | -0.75 |
F-Score6
WACC5.11%
ROIC/WACC0.15
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)-5.92%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%5.88%
EPS Next Y6.02%
EPS Next 2Y3.92%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue 1Y (TTM)141.58%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%35.19%
Revenue Next Year12.09%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y164.23%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.22%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y39.86%
OCF growth 3Y2.47%
OCF growth 5YN/A