ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLY - US0357108390 - REIT
23.86 USD
+0.02 (+0.08%)
23.86 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NLY. NLY was compared to 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare 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.
- The reported net income has been mixed in the past 5 years: NLY reported negative net income in multiple 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.
- With an excellent Return On Invested Capital value of 0.98%, NLY belongs to the best 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
- NLY has a Profit Margin of 20.91%. This is amongst the best in the industry. NLY outperforms 88.24% of its industry peers.
- NLY's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 23.66%, NLY belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
- NLY's Operating Margin has declined in the last couple of years.
- NLY's Gross Margin of 26.66% is in line compared 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
- 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.
- NLY has a worse Altman-Z score (-0.71) than 75.00% of its industry peers.
- The Debt to FCF ratio of NLY is 53.91, which is on the high side as it means it would take NLY, 53.91 years of fcf income to pay off all of its debts.
- NLY has a better Debt to FCF ratio (53.91) than 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.
- The Debt to Equity ratio of NLY (7.18) is worse 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
WACC5.13%
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.
- 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.
- The Earnings Per Share has been decreasing by -7.74% on average over the past years.
- Looking at the last year, NLY shows a very strong growth in Revenue. 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
- NLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.22% yearly.
- NLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.76% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.23, the valuation of NLY can be described as very reasonable.
- Based on the Price/Earnings ratio, NLY is valued cheaper than 82.35% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, NLY is valued rather cheaply.
- NLY is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NLY indicates a somewhat cheap valuation: NLY is cheaper than 73.53% of the companies listed 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 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NLY is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
- 83.82% of the companies in the same industry are more expensive than NLY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 28.31 |
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.
- The decent profitability rating of NLY 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.
- NLY's Dividend Yield is comparable with the industry average which is at 11.01.
- 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 paid a dividend for at least 10 years, which is 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
- NLY pays out 131.25% of its income as dividend. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y5.66%
EPS Next 3Y3.22%
23.86
+0.02 (+0.08%)
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 Cap16.30B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target23.25 (-2.56%)
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 | 8.23 | ||
| Fwd PE | 7.92 | ||
| P/S | 2.54 | ||
| P/FCF | 8.21 | ||
| P/OCF | 5.7 | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 28.31 |
EPS(TTM)2.9
EY12.15%
EPS(NY)3.01
Fwd EY12.63%
FCF(TTM)2.91
FCFY12.18%
OCF(TTM)4.18
OCFY17.53%
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 8.23 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.