ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
21.5 USD
-0.15 (-0.69%)
21.55 USD
+0.05 (+0.23%)
NLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 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 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.
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 has a Return On Assets of 1.07%. This is amongst the best in the industry. NLY outperforms 83.82% of its industry peers.
The Return On Equity of NLY (9.00%) is better than 94.12% of its industry peers.
NLY has a Return On Invested Capital of 0.98%. This is in the better half of the industry: NLY outperforms 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
Looking at the Profit Margin, with a value of 20.91%, NLY belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of NLY has declined.
NLY has a Operating Margin of 23.66%. This is amongst the best in the industry. NLY outperforms 85.29% of its industry peers.
NLY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.66%, NLY is in line with its industry, outperforming 48.53% of the companies in the same industry.
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
NLY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NLY has been increased compared to 1 year ago.
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
NLY has an Altman-Z score of -0.72. 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 (-0.72) 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.
Looking at the Debt to FCF ratio, with a value of 53.91, NLY is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
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 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.18 | ||
| Debt/FCF | 53.91 | ||
| Altman-Z | -0.72 |
ROIC/WACC0.19
WACC5.11%
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.
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.
A Quick Ratio of 0.04 indicates that NLY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.04, NLY is doing worse than 83.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
NLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.02%, which is quite good.
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 32.20% 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)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
Based on estimates for the next years, NLY will show a small growth in Earnings Per Share. The EPS will grow by 3.22% on average per year.
The Revenue is expected to grow by 9.97% on average over the next years. This is quite good.
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.
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
NLY is valuated cheaply with a Price/Earnings ratio of 7.41.
Based on the Price/Earnings ratio, NLY is valued cheaper than 85.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of NLY to the average of the S&P500 Index (25.89), we can say NLY is valued rather cheaply.
The Price/Forward Earnings ratio is 7.26, which indicates a rather cheap valuation of NLY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NLY indicates a somewhat cheap valuation: NLY is cheaper than 76.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, NLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 7.26 |
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.
Based on the Price/Free Cash Flow ratio, NLY is valued cheaply inside the industry as 86.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.95 | ||
| 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)0.86
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
131.25% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP131.25%
EPS Next 2Y4.75%
EPS Next 3Y3.22%
21.5
-0.15 (-0.69%)
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 Cap13.80B
Revenue(TTM)6.42B
Net Income(TTM)1.34B
Analysts76.47
Price Target22.21 (3.3%)
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 | 7.41 | ||
| Fwd PE | 7.26 | ||
| P/S | 2.15 | ||
| P/FCF | 6.95 | ||
| P/OCF | 4.83 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 26.78 |
EPS(TTM)2.9
EY13.49%
EPS(NY)2.96
Fwd EY13.78%
FCF(TTM)3.09
FCFY14.38%
OCF(TTM)4.45
OCFY20.7%
SpS9.99
BVpS23.22
TBVpS23.21
PEG (NY)0.86
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
WACC5.11%
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 7.41 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.