TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - NYSE:TRTX - US87266M1071 - REIT
9.27 USD
-0.18 (-1.9%)
9.15 USD
-0.12 (-1.29%)
Taking everything into account, TRTX scores 6 out of 10 in our fundamental rating. TRTX was compared to 62 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While TRTX has a great profitability rating, there are some minor concerns on its financial health. 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.
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
TRTX has a Return On Assets of 1.26%. This is amongst the best in the industry. TRTX outperforms 85.48% of its industry peers.
TRTX has a Return On Equity of 4.81%. This is in the better half of the industry: TRTX outperforms 75.81% of its industry peers.
TRTX's Return On Invested Capital of 4.82% is amongst the best of the industry. TRTX outperforms 95.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRTX is above the industry average of 1.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.81% | ||
| ROIC | 4.82% |
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 an excellent Profit Margin value of 15.90%, TRTX belongs to the best of the industry, outperforming 85.48% of the companies in the same industry.
In the last couple of years the Profit Margin of TRTX has declined.
TRTX has a better Operating Margin (76.27%) than 98.39% of its industry peers.
TRTX's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 91.50%, TRTX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.27% | ||
| PM (TTM) | 15.9% | ||
| GM | 91.5% |
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.
TRTX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRTX has an improved debt to assets ratio.
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.
TRTX's Altman-Z score of 0.25 is amongst the best of the industry. TRTX outperforms 80.65% of its industry peers.
TRTX has a debt to FCF ratio of 33.84. This is a negative value and a sign of low solvency as TRTX would need 33.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 33.84, TRTX is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
A Debt/Equity ratio of 2.77 is on the high side and indicates that TRTX has dependencies on debt financing.
TRTX has a Debt to Equity ratio of 2.77. This is in the better half of the industry: TRTX outperforms 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 33.84 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.7
WACC6.87%
2.3 Liquidity
TRTX has a Current Ratio of 4.38. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TRTX (4.38) is better than 95.16% of its industry peers.
A Quick Ratio of 4.38 indicates that TRTX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.38, TRTX belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.38 | ||
| Quick Ratio | 4.38 |
3. Growth
3.1 Past
TRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 130.71%, 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.
TRTX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.32%.
The Revenue has been growing slightly by 0.60% on average over the past years.
EPS 1Y (TTM)130.71%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-12.32%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-8.66%
3.2 Future
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
TRTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.68% yearly.
EPS Next Y5.19%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year2.88%
Revenue Next 2Y4.81%
Revenue Next 3Y2.68%
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.
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
TRTX is valuated reasonably with a Price/Earnings ratio of 10.78.
Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than 69.35% 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 27.20.
With a Price/Forward Earnings ratio of 8.22, the valuation of TRTX can be described as very reasonable.
TRTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 66.13% of the companies in the same industry.
TRTX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 8.22 |
4.2 Price Multiples
96.77% of the companies in the same industry are more expensive than TRTX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TRTX is valued cheaper than 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 13.46 |
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)2.08
PEG (5Y)N/A
EPS Next 2Y8.4%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.61%, TRTX is a good candidate for dividend investing.
With a Dividend Yield of 8.61, TRTX pays less dividend than the industry average, which is at 11.50. 85.48% of the companies listed in the same industry pay a better dividend than TRTX!
Compared to an average S&P500 Dividend Yield of 2.38, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.61% |
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
175.50% of the earnings are spent on dividend by TRTX. This is not a sustainable payout ratio.
DP175.5%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
9.27
-0.18 (-1.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner Change-1.9%
Ins Owners2.83%
Ins Owner Change-1.76%
Market Cap728.53M
Analysts80
Price Target10.2 (10.03%)
Short Float %6.8%
Short Ratio7.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.61% |
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP175.5%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.63%
Min EPS beat(2)-7.36%
Max EPS beat(2)4.11%
EPS beat(4)2
Avg EPS beat(4)-16.46%
Min EPS beat(4)-63%
Max EPS beat(4)4.11%
EPS beat(8)4
Avg EPS beat(8)-205.81%
EPS beat(12)5
Avg EPS beat(12)-153.11%
EPS beat(16)6
Avg EPS beat(16)-118.29%
Revenue beat(2)1
Avg Revenue beat(2)2.18%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)6.71%
Revenue beat(4)2
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-15.5%
Max Revenue beat(4)6.99%
Revenue beat(8)3
Avg Revenue beat(8)-4.94%
Revenue beat(12)5
Avg Revenue beat(12)18.39%
Revenue beat(16)9
Avg Revenue beat(16)30.6%
PT rev (1m)0%
PT rev (3m)5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.07%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)5.33%
Revenue NQ rev (3m)5.89%
Revenue NY rev (1m)2.01%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 8.22 | ||
| P/S | 2.21 | ||
| P/FCF | 8.15 | ||
| P/OCF | 7.83 | ||
| P/B | 0.67 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 13.46 |
EPS(TTM)0.86
EY9.28%
EPS(NY)1.13
Fwd EY12.17%
FCF(TTM)1.14
FCFY12.26%
OCF(TTM)1.18
OCFY12.77%
SpS4.19
BVpS13.88
TBVpS13.68
PEG (NY)2.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.81% | ||
| ROCE | 6.11% | ||
| ROIC | 4.82% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 5.07% | ||
| OM | 76.27% | ||
| PM (TTM) | 15.9% | ||
| GM | 91.5% | ||
| FCFM | 27.1% |
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%
ROICexcg growth 3Y24.39%
ROICexcg 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 | 2.77 | ||
| Debt/FCF | 33.84 | ||
| Debt/EBITDA | 11.35 | ||
| Cap/Depr | 24.83% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 34.93% | ||
| Profit Quality | 170.42% | ||
| Current Ratio | 4.38 | ||
| Quick Ratio | 4.38 | ||
| Altman-Z | 0.25 |
F-Score4
WACC6.87%
ROIC/WACC0.7
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)130.71%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%-14.29%
EPS Next Y5.19%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.32%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%-8.66%
Revenue Next Year2.88%
Revenue Next 2Y4.81%
Revenue Next 3Y2.68%
Revenue Next 5YN/A
EBIT growth 1Y-19.49%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year39.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.22%
FCF growth 3Y-6.86%
FCF growth 5Y-2.58%
OCF growth 1Y40.58%
OCF growth 3Y-5.34%
OCF growth 5Y-1.62%