TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
9.04 USD
-0.13 (-1.42%)
9.15 USD
+0.11 (+1.22%)
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. TRTX has only an average score on both its financial health and profitability. TRTX may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, TRTX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
TRTX had positive earnings in the past year.
In the past year TRTX had a positive cash flow from operations.
In multiple years TRTX reported negative net income over the last 5 years.
Each year in the past 5 years TRTX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 1.28%, TRTX belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.82%, TRTX is in line with its industry, outperforming 58.82% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.90%, TRTX belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
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 Profit Margin of 15.93%. This is in the better half of the industry: TRTX outperforms 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.
The Gross Margin of TRTX (91.36%) is better than 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
TRTX 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 TRTX has been increased compared to 1 year ago.
The number of shares outstanding for TRTX has been increased compared to 5 years ago.
The debt/assets ratio for TRTX has been reduced compared to a year ago.
2.2 Solvency
TRTX has an Altman-Z score of 0.25. This is a bad value and indicates that TRTX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.25, TRTX belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
TRTX has a debt to FCF ratio of 33.83. This is a negative value and a sign of low solvency as TRTX would need 33.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 33.83, TRTX belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
TRTX has a Debt/Equity ratio of 2.71. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.71, TRTX is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 33.83 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.73
WACC6.69%
2.3 Liquidity
TRTX has a Current Ratio of 4.20. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
TRTX's Current ratio of 4.20 is amongst the best of the industry. TRTX outperforms 92.65% of its industry peers.
A Quick Ratio of 4.20 indicates that TRTX has no problem at all paying its short term obligations.
The Quick ratio of TRTX (4.20) is better than 92.65% of its industry peers.
| 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.
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
Measured over the past years, TRTX shows a small growth in Revenue. The Revenue has been growing by 0.60% on average per year.
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.
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
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 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.
Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than 66.18% of the companies in the same industry.
TRTX is valuated cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.94 indicates a rather cheap valuation of TRTX.
Based on the Price/Forward Earnings ratio, TRTX is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
TRTX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.66.
| 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 80.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 13.5 |
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 10.51%, TRTX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.28, TRTX is paying slightly less dividend.
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.51% |
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
-0.13 (-1.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change-5.52%
Ins Owners2.29%
Ins Owner Change-1.76%
Market Cap707.47M
Revenue(TTM)327.61M
Net Income(TTM)52.20M
Analysts78.18
Price Target10.33 (14.27%)
Short Float %5.83%
Short Ratio8.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.51% |
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP175.66%
Div Incr Years1
Div Non Decr Years3
Ex-Date
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)1.25%
PT rev (3m)1.25%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-2.47%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.21%
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 | 13.5 |
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 | 0.25 |
F-Score4
WACC6.69%
ROIC/WACC0.73
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 of TPG RE FINANCE TRUST INC (TRTX) stock?
ChartMill assigns a valuation rating of 7 / 10 to TPG RE FINANCE TRUST INC (TRTX). This can be considered as Undervalued.
What is the profitability of TRTX stock?
TPG RE FINANCE TRUST INC (TRTX) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for TRTX stock?
The Earnings per Share (EPS) of TPG RE FINANCE TRUST INC (TRTX) is expected to grow by 4.55% in the next year.
How sustainable is the dividend of TPG RE FINANCE TRUST INC (TRTX) stock?
The dividend rating of TPG RE FINANCE TRUST INC (TRTX) is 4 / 10 and the dividend payout ratio is 175.66%.