ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NLY • US0357108390
23.01 USD
-0.99 (-4.12%)
At close: Jan 30, 2026
23.2899 USD
+0.28 (+1.22%)
After Hours: 1/30/2026, 8:09:13 PM
NLY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NLY has a medium profitability rating, but doesn't score so well on its financial health evaluation. NLY has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year NLY was profitable.
- NLY had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: NLY reported negative net income in multiple years.
- NLY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- NLY has a Return On Assets of 1.07%. This is amongst the best in the industry. NLY outperforms 84.29% of its industry peers.
- The Return On Equity of NLY (9.00%) is better than 94.29% 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 81.43% 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 better Profit Margin (20.91%) than 88.57% of its industry peers.
- In the last couple of years the Profit Margin of NLY has declined.
- NLY has a better Operating Margin (23.66%) than 85.71% of its industry peers.
- NLY's Operating Margin has declined in the last couple of years.
- NLY has a Gross Margin (26.66%) which is in line with its industry peers.
- 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
- NLY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- NLY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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 worse Altman-Z score (-0.71) than 75.71% 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 has a better Debt to FCF ratio (53.91) than 78.57% 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 perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.19
WACC5.14%
2.3 Liquidity
- A Current Ratio of 0.04 indicates that NLY may have some problems paying its short term obligations.
- With a Current ratio value of 0.04, NLY is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
- 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's Quick ratio of 0.04 is on the low side compared to the rest of the industry. NLY is outperformed by 85.71% 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 8.15% over the past year.
- The Earnings Per Share has been decreasing by -7.87% on average over the past years.
EPS 1Y (TTM)8.15%
EPS 3Y-11.9%
EPS 5Y-7.87%
EPS Q2Q%2.78%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-72.62%
3.2 Future
- The Earnings Per Share is expected to grow by 1.49% on average over the next years.
- The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.
EPS Next Y3.02%
EPS Next 2Y1.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.22%
Revenue Next 2Y8.41%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.88, 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 82.86% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. NLY is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 7.65, the valuation of NLY can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NLY indicates a somewhat cheap valuation: NLY is cheaper than 72.86% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, NLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 7.65 |
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 94.29% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NLY is valued cheaper than 87.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.92 | ||
| EV/EBITDA | 27.95 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y1.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 12.17%, NLY is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.00, NLY pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, NLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.17% |
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.
- NLY has decreased its dividend 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 2Y1.49%
EPS Next 3YN/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 4 / 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 7.88 and the Price/Book (PB) ratio is 1.05.
What is the financial health of ANNALY CAPITAL MANAGEMENT IN (NLY) stock?
The financial health rating of ANNALY CAPITAL MANAGEMENT IN (NLY) is 2 / 10.