ANNALY CAPITAL MANAGEMENT IN (NLY)

US0357108390 - REIT

18.8  -0.18 (-0.95%)

After market: 18.85 +0.05 (+0.27%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to NLY. NLY was compared to 63 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NLY has a bad profitability rating. Also its financial health evaluation is rather negative. NLY has a decent growth rate and is not valued too expensively.



1

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.
NLY had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

NLY's Return On Assets of -0.04% is on the low side compared to the rest of the industry. NLY is outperformed by 61.90% of its industry peers.
With a Return On Equity value of -0.30%, NLY is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 0.12%, NLY is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
ROA -0.04%
ROE -0.3%
ROIC 0.12%
ROA(3y)1.01%
ROA(5y)0.02%
ROE(3y)5.27%
ROE(5y)-1.23%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

NLY has a worse Operating Margin (3.17%) than 68.25% of its industry peers.
Looking at the Gross Margin, with a value of 6.60%, NLY is doing worse than 85.71% of the companies in the same industry.
Industry RankSector Rank
OM 3.17%
PM (TTM) N/A
GM 6.6%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A

0

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.
Compared to 1 year ago, NLY has more shares outstanding
NLY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NLY has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -0.83, we must say that NLY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NLY (-0.83) is worse than 79.37% of its industry peers.
NLY has a debt to FCF ratio of 475.43. This is a negative value and a sign of low solvency as NLY would need 475.43 years to pay back of all of its debts.
NLY's Debt to FCF ratio of 475.43 is on the low side compared to the rest of the industry. NLY is outperformed by 63.49% of its industry peers.
A Debt/Equity ratio of 6.92 is on the high side and indicates that NLY has dependencies on debt financing.
NLY's Debt to Equity ratio of 6.92 is on the low side compared to the rest of the industry. NLY is outperformed by 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.92
Debt/FCF 475.43
Altman-Z -0.83
ROIC/WACC0.03
WACC4.85%

2.3 Liquidity

NLY has a Current Ratio of 0.05. 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 has a Current ratio of 0.05. This is amonst the worse of the industry: NLY underperforms 84.13% of its industry peers.
NLY has a Quick Ratio of 0.05. 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 0.05 is on the low side compared to the rest of the industry. NLY is outperformed by 84.13% of its industry peers.
Industry RankSector Rank
Current Ratio 0.05
Quick Ratio 0.05

5

3. Growth

3.1 Past

The earnings per share for NLY have decreased strongly by -13.64% in the last year.
The Earnings Per Share has been decreasing by -9.62% on average over the past years.
The Revenue has grown by 212.53% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 1.37% on average over the past years.
EPS 1Y (TTM)-13.64%
EPS 3Y-13.28%
EPS 5Y-9.62%
EPS Q2Q%0%
Revenue 1Y (TTM)212.53%
Revenue growth 3Y91.01%
Revenue growth 5Y1.37%
Sales Q2Q%22.75%

3.2 Future

Based on estimates for the next years, NLY will show a decrease in Earnings Per Share. The EPS will decrease by -0.64% on average per year.
NLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.86% yearly.
EPS Next Y-6.92%
EPS Next 2Y-1.51%
EPS Next 3Y-0.64%
EPS Next 5YN/A
Revenue Next Year26.77%
Revenue Next 2Y17.72%
Revenue Next 3Y12.86%
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 Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.07, which indicates a rather cheap valuation of NLY.
NLY's Price/Earnings ratio is rather cheap when compared to the industry. NLY is cheaper than 82.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, NLY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.75, the valuation of NLY can be described as very cheap.
NLY's Price/Forward Earnings ratio is rather cheap when compared to the industry. NLY is cheaper than 82.54% of the companies in the same industry.
NLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.07
Fwd PE 6.75

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NLY is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NLY is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 57.91
EV/EBITDA 158.67

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.51%
EPS Next 3Y-0.64%

5

5. Dividend

5.1 Amount

NLY has a Yearly Dividend Yield of 14.15%, which is a nice return.
NLY's Dividend Yield is a higher than the industry average which is at 13.27.
Compared to an average S&P500 Dividend Yield of 2.33, NLY pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.15%

5.2 History

The dividend of NLY decreases each year by -8.86%.
NLY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.86%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

The earnings of NLY are negative and hence is the payout ratio. NLY will probably not be able to sustain this dividend level.
NLY's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-3930.14%
EPS Next 2Y-1.51%
EPS Next 3Y-0.64%

ANNALY CAPITAL MANAGEMENT IN

NYSE:NLY (1/6/2025, 8:04:00 PM)

After market: 18.85 +0.05 (+0.27%)

18.8

-0.18 (-0.95%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners49.08%
Inst Owner Change0.01%
Ins Owners0.12%
Ins Owner Change-3.55%
Market Cap10.49B
Analysts78.82
Price Target21.88 (16.38%)
Short Float %2.12%
Short Ratio1.82
Dividend
Industry RankSector Rank
Dividend Yield 14.15%
Dividend Growth(5Y)-8.86%
DP-3930.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.68%
Min EPS beat(2)-2.22%
Max EPS beat(2)3.58%
EPS beat(4)2
Avg EPS beat(4)0.97%
Min EPS beat(4)-2.22%
Max EPS beat(4)4.22%
EPS beat(8)3
Avg EPS beat(8)-0.08%
EPS beat(12)7
Avg EPS beat(12)3.88%
EPS beat(16)11
Avg EPS beat(16)4.49%
Revenue beat(2)2
Avg Revenue beat(2)7.52%
Min Revenue beat(2)6.62%
Max Revenue beat(2)8.41%
Revenue beat(4)3
Avg Revenue beat(4)4.58%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)8.41%
Revenue beat(8)5
Avg Revenue beat(8)-12.08%
Revenue beat(12)8
Avg Revenue beat(12)29.89%
Revenue beat(16)11
Avg Revenue beat(16)36.53%
PT rev (1m)-0.69%
PT rev (3m)-0.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0.33%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)13.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.18%
Valuation
Industry RankSector Rank
PE 7.07
Fwd PE 6.75
P/S 2.16
P/FCF 57.91
P/OCF 11.92
P/B 0.84
P/tB 0.84
EV/EBITDA 158.67
EPS(TTM)2.66
EY14.15%
EPS(NY)2.78
Fwd EY14.81%
FCF(TTM)0.32
FCFY1.73%
OCF(TTM)1.58
OCFY8.39%
SpS8.7
BVpS22.3
TBVpS22.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.04%
ROE -0.3%
ROCE 0.47%
ROIC 0.12%
ROICexc 0.12%
ROICexgc 0.13%
OM 3.17%
PM (TTM) N/A
GM 6.6%
FCFM 3.73%
ROA(3y)1.01%
ROA(5y)0.02%
ROE(3y)5.27%
ROE(5y)-1.23%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 6.92
Debt/FCF 475.43
Debt/EBITDA 470.58
Cap/Depr 2412.28%
Cap/Sales 14.41%
Interest Coverage 0.04
Cash Conversion 481%
Profit Quality N/A
Current Ratio 0.05
Quick Ratio 0.05
Altman-Z -0.83
F-Score5
WACC4.85%
ROIC/WACC0.03
Cap/Depr(3y)2768.13%
Cap/Depr(5y)2476.17%
Cap/Sales(3y)21.04%
Cap/Sales(5y)41.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.64%
EPS 3Y-13.28%
EPS 5Y-9.62%
EPS Q2Q%0%
EPS Next Y-6.92%
EPS Next 2Y-1.51%
EPS Next 3Y-0.64%
EPS Next 5YN/A
Revenue 1Y (TTM)212.53%
Revenue growth 3Y91.01%
Revenue growth 5Y1.37%
Sales Q2Q%22.75%
Revenue Next Year26.77%
Revenue Next 2Y17.72%
Revenue Next 3Y12.86%
Revenue Next 5YN/A
EBIT growth 1Y107.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-96.45%
FCF growth 3Y55.8%
FCF growth 5Y4.94%
OCF growth 1Y-85.41%
OCF growth 3Y64.89%
OCF growth 5Y-2.02%