ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
21.65 USD
-0.13 (-0.6%)
21.7136 USD
+0.06 (+0.29%)
Taking everything into account, NLY scores 5 out of 10 in our fundamental rating. NLY was compared to 68 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. NLY is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year NLY was profitable.
NLY had a positive operating cash flow in the past year.
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
NLY's Return On Assets of 1.07% is amongst the best of the industry. NLY outperforms 82.35% of its industry peers.
The Return On Equity of NLY (9.00%) is better than 92.65% of its industry peers.
NLY has a better Return On Invested Capital (0.98%) than 79.41% 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
NLY has a better Profit Margin (20.91%) than 88.24% of its industry peers.
In the last couple of years the Profit Margin of NLY has declined.
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.
NLY has a Gross Margin (26.66%) which is in line with 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.
The number of shares outstanding for NLY has been increased compared to 1 year ago.
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
Based on the Altman-Z score of -0.72, we must say that NLY is in the distress zone and has some risk of bankruptcy.
NLY has a worse Altman-Z score (-0.72) than 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.
The Debt to FCF ratio of NLY (53.91) is better than 76.47% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.72 |
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: 83.82% 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 83.82% 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.
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.
The Revenue has grown by 32.20% in the past year. This is a very strong growth!
Measured over the past years, NLY shows a very strong growth in Revenue. The Revenue has been growing by 45.38% on average per year.
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
The Earnings Per Share is expected to grow by 3.22% on average over the next years.
Based on estimates for the next years, NLY will show a quite strong growth in Revenue. The Revenue will grow by 9.97% on average per year.
EPS Next Y8.61%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
EPS Next 5YN/A
Revenue Next Year18.05%
Revenue Next 2Y11.7%
Revenue Next 3Y9.97%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.47 indicates a rather cheap valuation of NLY.
Based on the Price/Earnings ratio, NLY is valued cheaper than 85.29% of the companies in the same industry.
NLY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 7.31, which indicates a rather cheap valuation of NLY.
76.47% of the companies in the same industry are more expensive than NLY, based on the Price/Forward Earnings ratio.
NLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 7.31 |
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 94.12% of the companies listed in the same industry.
NLY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NLY is cheaper than 86.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | 26.78 |
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.
NLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y4.75%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
NLY has a Yearly Dividend Yield of 12.86%, which is a nice return.
NLY's Dividend Yield is comparable with the industry average which is at 11.91.
Compared to an average S&P500 Dividend Yield of 2.44, NLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.86% |
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
NLY pays out 131.25% of its income as dividend. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
21.65
-0.13 (-0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.55%
Inst Owner Change13.89%
Ins Owners0.1%
Ins Owner Change-5.87%
Market Cap13.90B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target22.21 (2.59%)
Short Float %1.54%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.86% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP131.25%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)3.54%
PT rev (3m)4.05%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.37%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)5.92%
Revenue NQ rev (3m)7.45%
Revenue NY rev (1m)1.72%
Revenue NY rev (3m)4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 7.31 | ||
| P/S | 2.17 | ||
| P/FCF | 7 | ||
| P/OCF | 4.87 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 26.78 |
EPS(TTM)2.9
EY13.39%
EPS(NY)2.96
Fwd EY13.68%
FCF(TTM)3.09
FCFY14.28%
OCF(TTM)4.45
OCFY20.55%
SpS9.99
BVpS23.22
TBVpS23.21
PEG (NY)0.87
PEG (5Y)N/A
Graham Number38.93
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 | -0.72 |
F-Score6
WACC5.14%
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 Y8.61%
EPS Next 2Y4.75%
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 Year18.05%
Revenue Next 2Y11.7%
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 for 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.
Can you provide the PE and PB ratios for NLY stock?
The Price/Earnings (PE) ratio for ANNALY CAPITAL MANAGEMENT IN (NLY) is 7.47 and the Price/Book (PB) ratio is 0.93.
What is the earnings growth outlook for ANNALY CAPITAL MANAGEMENT IN?
The Earnings per Share (EPS) of ANNALY CAPITAL MANAGEMENT IN (NLY) is expected to grow by 8.61% in the next year.