TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
9.11 USD
+0.13 (+1.45%)
9.11 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. 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
- 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.
- 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 of 4.82%. This is comparable 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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.
- 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.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRTX is destroying value.
- TRTX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for TRTX has been increased compared to 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 0.24. This is a bad value and indicates that TRTX is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 0.24, TRTX belongs to the best 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.
- TRTX has a better Debt to FCF ratio (33.83) 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 better Debt to Equity ratio (2.71) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 33.83 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.73
WACC6.68%
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.
- A Quick Ratio of 4.20 indicates that TRTX has no problem at all paying 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
- The Earnings Per Share is expected to grow by 6.91% on average over the next years.
- 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 Y4.48%
EPS Next 2Y9.17%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year1.09%
Revenue Next 2Y5.31%
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 10.98, the valuation of TRTX can be described as reasonable.
- 67.65% of the companies in the same industry are more expensive than TRTX, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.87. TRTX is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 7.96, 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 73.53% of the companies listed 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 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 7.96 |
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.
- 85.29% of the companies in the same industry are more expensive than TRTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| 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)2.45
PEG (5Y)N/A
EPS Next 2Y9.17%
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 11.64, TRTX is paying slightly less dividend.
- 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 | 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
- TRTX pays out 175.66% of its income as dividend. This is not a sustainable payout ratio.
DP175.66%
EPS Next 2Y9.17%
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%.