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%)
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. 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. This makes TRTX very considerable 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.
- 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
- The Return On Assets of TRTX (1.28%) is better than 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.
- 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
- The Profit Margin of TRTX (15.93%) is better than 70.59% of its industry peers.
- 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.
- 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.
- 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
- TRTX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- 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.
- The Altman-Z score of TRTX (0.25) is better than 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.
- 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.
- 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 | 0.25 |
ROIC/WACC0.74
WACC6.64%
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.
- TRTX has a Quick ratio of 4.20. This is amongst the best in the industry. TRTX outperforms 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.
- Measured over the past years, TRTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.01% on average per year.
- 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
- 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.
- Based on estimates for the next years, TRTX will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
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.
- 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
- With a Price/Earnings ratio of 10.81, the valuation of TRTX can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of TRTX indicates a somewhat cheap valuation: TRTX is cheaper than 67.65% of the companies listed in the same industry.
- TRTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 7.88, the valuation of TRTX can be described as very cheap.
- 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.
- When comparing the Price/Forward Earnings ratio of TRTX to the average of the S&P500 Index (24.26), we can say TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TRTX is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TRTX is valued 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 an expensive valuation of the company.
- TRTX has a very decent profitability rating, which 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
- TRTX has a Yearly Dividend Yield of 10.54%, which is a nice return.
- Compared to an average industry Dividend Yield of 11.30, 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!
- Compared to an average S&P500 Dividend Yield of 1.81, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.54% |
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%.