TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
9.04 USD
+0.06 (+0.67%)
9.04 USD
0 (0%)
Overall TRTX gets a fundamental rating of 6 out of 10. We evaluated TRTX against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX has an average financial health and profitability rating. TRTX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make TRTX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
TRTX had positive earnings in the past year.
TRTX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TRTX reported negative net income in multiple years.
TRTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.28%, TRTX belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
TRTX has a Return On Equity (4.82%) which is comparable to the rest of the industry.
The Return On Invested Capital of TRTX (4.90%) is better than 97.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRTX is above the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 4.82% | ||
| ROIC | 4.9% |
ROA(3y)-0.94%
ROA(5y)-0.93%
ROE(3y)-3.95%
ROE(5y)-3.53%
ROIC(3y)5.39%
ROIC(5y)4.65%
1.3 Margins
TRTX has a better Profit Margin (15.93%) than 70.59% of its industry peers.
In the last couple of years the Profit Margin of TRTX has declined.
The Operating Margin of TRTX (76.07%) is better than 98.53% of its industry peers.
TRTX's Operating Margin has declined in the last couple of years.
TRTX has a Gross Margin of 91.36%. This is amongst the best in the industry. TRTX outperforms 100.00% of its industry peers.
TRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.07% | ||
| PM (TTM) | 15.93% | ||
| GM | 91.36% |
OM growth 3Y-2.13%
OM growth 5Y-2.23%
PM growth 3Y-16.74%
PM growth 5Y-14.35%
GM growth 3Y1.36%
GM growth 5Y0.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRTX is destroying value.
The number of shares outstanding for TRTX has been increased compared to 1 year ago.
Compared to 5 years ago, TRTX has more shares outstanding
Compared to 1 year ago, TRTX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
TRTX's Altman-Z score of 0.24 is amongst the best of the industry. TRTX outperforms 80.88% of its industry peers.
The Debt to FCF ratio of TRTX is 33.83, which is on the high side as it means it would take TRTX, 33.83 years of fcf income to pay off all of its debts.
TRTX has a Debt to FCF ratio of 33.83. This is amongst the best in the industry. TRTX outperforms 82.35% of its industry peers.
TRTX has a Debt/Equity ratio of 2.71. This is a high value indicating a heavy dependency on external financing.
TRTX's Debt to Equity ratio of 2.71 is fine compared to the rest of the industry. TRTX outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 33.83 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.74
WACC6.66%
2.3 Liquidity
A Current Ratio of 4.20 indicates that TRTX has no problem at all paying its short term obligations.
TRTX has a better Current ratio (4.20) than 92.65% of its industry peers.
TRTX has a Quick Ratio of 4.20. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
TRTX has a better Quick ratio (4.20) than 92.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 169.75% over the past year.
The earnings per share for TRTX have been decreasing by -11.01% on average. This is quite bad
The Revenue for TRTX has decreased by -10.78% in the past year. This is quite bad
TRTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.60% yearly.
EPS 1Y (TTM)169.75%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-10.71%
Revenue 1Y (TTM)-10.78%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-3.39%
3.2 Future
Based on estimates for the next years, TRTX will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
TRTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y4.55%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y5.39%
Revenue Next 3Y3.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
TRTX is valuated reasonably with a Price/Earnings ratio of 10.89.
TRTX's Price/Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 66.18% of the companies in the same industry.
TRTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 7.94, which indicates a rather cheap valuation of TRTX.
TRTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 67.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTX is valued cheaper than 98.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRTX is valued cheaply inside the industry as 83.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 13.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRTX does not grow enough to justify the current Price/Earnings ratio.
TRTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)N/A
EPS Next 2Y8.89%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.15%, TRTX is a good candidate for dividend investing.
TRTX's Dividend Yield is comparable with the industry average which is at 11.16.
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.15% |
5.2 History
The dividend of TRTX decreases each year by -8.14%.
TRTX has been paying a dividend for over 5 years, so it has already some track record.
TRTX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-8.14%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
175.66% of the earnings are spent on dividend by TRTX. This is not a sustainable payout ratio.
DP175.66%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
9.04
+0.06 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners77.32%
Inst Owner Change0%
Ins Owners3%
Ins Owner Change3.9%
Market Cap707.47M
Revenue(TTM)327.61M
Net Income(TTM)52.20M
Analysts78.18
Price Target10.33 (14.27%)
Short Float %5.97%
Short Ratio6.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.15% |
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP175.66%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.69%
Min EPS beat(2)-2.74%
Max EPS beat(2)4.11%
EPS beat(4)1
Avg EPS beat(4)-17.25%
Min EPS beat(4)-63%
Max EPS beat(4)4.11%
EPS beat(8)4
Avg EPS beat(8)-136.16%
EPS beat(12)5
Avg EPS beat(12)-151.15%
EPS beat(16)5
Avg EPS beat(16)-118.99%
Revenue beat(2)2
Avg Revenue beat(2)6.28%
Min Revenue beat(2)5.85%
Max Revenue beat(2)6.71%
Revenue beat(4)2
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-15.5%
Max Revenue beat(4)6.71%
Revenue beat(8)4
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)9.64%
Revenue beat(16)9
Avg Revenue beat(16)27.31%
PT rev (1m)0%
PT rev (3m)1.25%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-2.78%
Revenue NQ rev (3m)-5.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 7.94 | ||
| P/S | 2.16 | ||
| P/FCF | 8.16 | ||
| P/OCF | 7.76 | ||
| P/B | 0.65 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 13.45 |
EPS(TTM)0.83
EY9.18%
EPS(NY)1.14
Fwd EY12.59%
FCF(TTM)1.11
FCFY12.25%
OCF(TTM)1.17
OCFY12.89%
SpS4.19
BVpS13.83
TBVpS13.64
PEG (NY)2.39
PEG (5Y)N/A
Graham Number16.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 4.82% | ||
| ROCE | 6.2% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.02% | ||
| ROICexgc | 5.06% | ||
| OM | 76.07% | ||
| PM (TTM) | 15.93% | ||
| GM | 91.36% | ||
| FCFM | 26.46% |
ROA(3y)-0.94%
ROA(5y)-0.93%
ROE(3y)-3.95%
ROE(5y)-3.53%
ROIC(3y)5.39%
ROIC(5y)4.65%
ROICexc(3y)5.67%
ROICexc(5y)4.9%
ROICexgc(3y)5.74%
ROICexgc(5y)4.97%
ROCE(3y)6.82%
ROCE(5y)5.88%
ROICexgc growth 3Y24.39%
ROICexgc growth 5Y8.93%
ROICexc growth 3Y24.45%
ROICexc growth 5Y8.68%
OM growth 3Y-2.13%
OM growth 5Y-2.23%
PM growth 3Y-16.74%
PM growth 5Y-14.35%
GM growth 3Y1.36%
GM growth 5Y0.46%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 33.83 | ||
| Debt/EBITDA | 11.13 | ||
| Cap/Depr | 31.59% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | 34.62% | ||
| Profit Quality | 166.09% | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 | ||
| Altman-Z | 0.24 |
F-Score4
WACC6.66%
ROIC/WACC0.74
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)1.52%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)169.75%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-10.71%
EPS Next Y4.55%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.78%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-3.39%
Revenue Next Year2.66%
Revenue Next 2Y5.39%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y-16.3%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year43.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.44%
FCF growth 3Y-6.86%
FCF growth 5Y-2.58%
OCF growth 1Y21.76%
OCF growth 3Y-5.34%
OCF growth 5Y-1.62%
TPG RE FINANCE TRUST INC / TRTX FAQ
What is the ChartMill fundamental rating of TPG RE FINANCE TRUST INC (TRTX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRTX.
What is the valuation status for TRTX stock?
ChartMill assigns a valuation rating of 7 / 10 to TPG RE FINANCE TRUST INC (TRTX). This can be considered as Undervalued.
Can you provide the profitability details for TPG RE FINANCE TRUST INC?
TPG RE FINANCE TRUST INC (TRTX) has a profitability rating of 6 / 10.
How financially healthy is TPG RE FINANCE TRUST INC?
The financial health rating of TPG RE FINANCE TRUST INC (TRTX) is 6 / 10.
Is the dividend of TPG RE FINANCE TRUST INC sustainable?
The dividend rating of TPG RE FINANCE TRUST INC (TRTX) is 4 / 10 and the dividend payout ratio is 175.66%.