ANNALY CAPITAL MANAGEMENT IN (NLY) Stock Fundamental Analysis
USA - NYSE:NLY - US0357108390 - REIT
20.8 USD
+0.29 (+1.41%)
20.77 USD
-0.03 (-0.14%)
Overall NLY gets a fundamental rating of 4 out of 10. We evaluated NLY against 66 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on NLY.
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's Return On Assets of 0.51% is fine compared to the rest of the industry. NLY outperforms 71.21% of its industry peers.
NLY has a better Return On Equity (4.30%) than 71.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.55%, NLY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 4.3% | ||
| ROIC | 0.55% |
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 10.25%, NLY is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
In the last couple of years the Profit Margin of NLY has declined.
NLY's Operating Margin of 13.53% is fine compared to the rest of the industry. NLY outperforms 69.70% of its industry peers.
NLY's Operating Margin has declined in the last couple of years.
NLY has a Gross Margin (16.85%) which is comparable to the rest of the industry.
NLY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.53% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.85% |
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 -0.74, we must say that NLY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.74, NLY is doing worse than 75.76% of the companies in the same industry.
The Debt to FCF ratio of NLY is 188.60, which is on the high side as it means it would take NLY, 188.60 years of fcf income to pay off all of its debts.
NLY has a worse Debt to FCF ratio (188.60) than 68.18% of its industry peers.
NLY has a Debt/Equity ratio of 7.16. This is a high value indicating a heavy dependency on external financing.
NLY has a worse Debt to Equity ratio (7.16) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Altman-Z | -0.74 |
ROIC/WACC0.11
WACC5.09%
2.3 Liquidity
A Current Ratio of 0.06 indicates that NLY may have some problems paying its short term obligations.
NLY's Current ratio of 0.06 is on the low side compared to the rest of the industry. NLY is outperformed by 78.79% of its industry peers.
NLY has a Quick Ratio of 0.06. This is a bad value and indicates that NLY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.06, NLY is doing worse than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
NLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.39%.
The Earnings Per Share has been decreasing by -7.74% on average over the past years.
NLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.01%.
The Revenue has been growing by 45.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)6.39%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%7.35%
Revenue 1Y (TTM)39.01%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.52%
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 3.28% on average per year.
NLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
EPS Next Y8.2%
EPS Next 2Y5.61%
EPS Next 3Y3.28%
EPS Next 5YN/A
Revenue Next Year16.05%
Revenue Next 2Y9.07%
Revenue Next 3Y3.16%
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.
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
Based on the Price/Earnings ratio of 7.35, 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 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. NLY is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.91, 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 80.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, NLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 6.91 |
4.2 Price Multiples
89.39% of the companies in the same industry are more expensive than NLY, based on the Enterprise Value to EBITDA ratio.
NLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.3 | ||
| EV/EBITDA | 47.99 |
4.3 Compensation for Growth
NLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y5.61%
EPS Next 3Y3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.65%, NLY is a good candidate for dividend investing.
NLY's Dividend Yield is comparable with the industry average which is at 13.08.
Compared to an average S&P500 Dividend Yield of 2.36, NLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.65% |
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
285.38% of the earnings are spent on dividend by NLY. This is not a sustainable payout ratio.
DP285.38%
EPS Next 2Y5.61%
EPS Next 3Y3.28%
20.8
+0.29 (+1.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners60.55%
Inst Owner Change-1.32%
Ins Owners0.1%
Ins Owner Change-4.05%
Market Cap13.36B
Analysts77.78
Price Target21.45 (3.12%)
Short Float %2.2%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.65% |
Yearly Dividend2.77
Dividend Growth(5Y)-10.87%
DP285.38%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.45%
Min EPS beat(2)0.77%
Max EPS beat(2)2.14%
EPS beat(4)3
Avg EPS beat(4)1.86%
Min EPS beat(4)-2.22%
Max EPS beat(4)6.77%
EPS beat(8)5
Avg EPS beat(8)0.99%
EPS beat(12)7
Avg EPS beat(12)1.29%
EPS beat(16)11
Avg EPS beat(16)3.76%
Revenue beat(2)2
Avg Revenue beat(2)3.91%
Min Revenue beat(2)0.08%
Max Revenue beat(2)7.74%
Revenue beat(4)4
Avg Revenue beat(4)4.9%
Min Revenue beat(4)0.08%
Max Revenue beat(4)7.74%
Revenue beat(8)7
Avg Revenue beat(8)4.27%
Revenue beat(12)8
Avg Revenue beat(12)-13.15%
Revenue beat(16)12
Avg Revenue beat(16)25.03%
PT rev (1m)0.01%
PT rev (3m)1.71%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)5.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 6.91 | ||
| P/S | 2.38 | ||
| P/FCF | 26.3 | ||
| P/OCF | 11.51 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 47.99 |
EPS(TTM)2.83
EY13.61%
EPS(NY)3.01
Fwd EY14.48%
FCF(TTM)0.79
FCFY3.8%
OCF(TTM)1.81
OCFY8.69%
SpS8.74
BVpS20.84
TBVpS20.83
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 4.3% | ||
| ROCE | 1.86% | ||
| ROIC | 0.55% | ||
| ROICexc | 0.56% | ||
| ROICexgc | 0.56% | ||
| OM | 13.53% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.85% | ||
| FCFM | 9.05% |
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
ROICexcg growth 3Y-34.31%
ROICexcg 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-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.16 | ||
| Debt/FCF | 188.6 | ||
| Debt/EBITDA | 120.97 | ||
| Cap/Depr | 2006.36% | ||
| Cap/Sales | 11.63% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 146.56% | ||
| Profit Quality | 88.29% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | -0.74 |
F-Score7
WACC5.09%
ROIC/WACC0.11
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)6.39%
EPS 3Y-16.27%
EPS 5Y-7.74%
EPS Q2Q%7.35%
EPS Next Y8.2%
EPS Next 2Y5.61%
EPS Next 3Y3.28%
EPS Next 5YN/A
Revenue 1Y (TTM)39.01%
Revenue growth 3Y25.23%
Revenue growth 5Y45.38%
Sales Q2Q%20.52%
Revenue Next Year16.05%
Revenue Next 2Y9.07%
Revenue Next 3Y3.16%
Revenue Next 5YN/A
EBIT growth 1Y258.52%
EBIT growth 3Y-27.4%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-77.28%
FCF growth 3Y-2.02%
FCF growth 5YN/A
OCF growth 1Y-58.16%
OCF growth 3Y2.47%
OCF growth 5YN/A