TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
8.97 USD
-0.14 (-1.54%)
8.97 USD
0 (0%)
Taking everything into account, TRTX scores 6 out of 10 in our fundamental rating. TRTX was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of TRTX get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on TRTX. These ratings could make TRTX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year TRTX was profitable.
- 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.
- Each year in the past 5 years TRTX had a positive operating cash flow.
1.2 Ratios
- TRTX has a Return On Assets of 1.28%. This is amongst the best in the industry. TRTX outperforms 88.24% of its industry peers.
- TRTX's Return On Equity of 4.82% is in line compared to the rest of the industry. TRTX outperforms 58.82% of its industry peers.
- TRTX has a better Return On Invested Capital (4.90%) 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
- With a decent Profit Margin value of 15.93%, TRTX is doing good in the industry, outperforming 70.59% of the companies in the same industry.
- In the last couple of years the Profit Margin of TRTX has declined.
- TRTX's Operating Margin of 76.07% is amongst the best of the industry. TRTX outperforms 98.53% of its industry peers.
- In the last couple of years the Operating Margin of TRTX has declined.
- The Gross Margin of TRTX (91.36%) is better than 100.00% of its industry peers.
- In the last couple of years the Gross Margin of TRTX has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRTX is destroying value.
- Compared to 1 year ago, TRTX has more shares outstanding
- The number of shares outstanding for TRTX has been increased compared to 5 years ago.
- TRTX has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.25, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
- With an excellent Altman-Z score value of 0.25, TRTX belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of TRTX (33.83) is better than 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 has a Debt to Equity ratio of 2.71. This is in the better half 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 | 0.25 |
ROIC/WACC0.74
WACC6.65%
2.3 Liquidity
- A Current Ratio of 4.20 indicates that TRTX has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 4.20, TRTX belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
- 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.
- With an excellent Quick ratio value of 4.20, TRTX belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 |
3. Growth
3.1 Past
- TRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 169.75%, which is quite impressive.
- TRTX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.01% yearly.
- Looking at the last year, TRTX shows a very negative growth in Revenue. The Revenue has decreased by -10.78% in the last year.
- 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
- TRTX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
- The Revenue is expected to grow by 3.81% on average over the next years.
EPS Next Y4.55%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year1.27%
Revenue Next 2Y5.48%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.81, the valuation of TRTX can be described as reasonable.
- Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. TRTX is valued rather cheaply when compared to this.
- TRTX is valuated cheaply with a Price/Forward Earnings ratio of 7.88.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TRTX indicates a somewhat cheap valuation: TRTX is cheaper than 70.59% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. TRTX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRTX indicates a rather cheap valuation: TRTX is cheaper than 98.53% of the companies listed in the same industry.
- TRTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TRTX is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 13.48 |
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.
- The decent profitability rating of TRTX may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)N/A
EPS Next 2Y8.89%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.68%, TRTX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.01, TRTX's dividend is way lower than its industry peers. On top of this 86.76% of the companies listed in the same industry pay a better dividend than TRTX!
- TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.68% |
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%
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%.