TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
9.09 USD
-0.02 (-0.22%)
8.9388 USD
-0.15 (-1.66%)
Overall TRTX gets a fundamental rating of 6 out of 10. We evaluated TRTX against 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX has an average financial health and profitability rating. TRTX is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years TRTX always reported a positive cash flow from operatings.
1.2 Ratios
TRTX has a Return On Assets of 1.28%. This is amongst the best in the industry. TRTX outperforms 89.71% of its industry peers.
The Return On Equity of TRTX (4.82%) is comparable to the rest of the 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.
TRTX had an Average Return On Invested Capital over the past 3 years of 5.39%. This is above the industry average of 1.22%.
| 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.
TRTX's Profit Margin has declined in the last couple of years.
TRTX has a better Operating Margin (76.07%) than 98.53% of its industry peers.
TRTX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 91.36%, TRTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRTX is destroying value.
The number of shares outstanding for TRTX has been increased compared to 1 year ago.
Compared to 5 years ago, TRTX has more shares outstanding
Compared to 1 year ago, TRTX has an improved debt to assets ratio.
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.
TRTX's Altman-Z score of 0.25 is fine compared to the rest of the industry. TRTX outperforms 79.41% of its industry peers.
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's Debt to FCF ratio of 33.83 is amongst the best of the industry. TRTX outperforms 82.35% of its industry peers.
A Debt/Equity ratio of 2.71 is on the high side and indicates that TRTX has dependencies on debt financing.
The Debt to Equity ratio of TRTX (2.71) is better than 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's Quick ratio of 4.20 is amongst the best of 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
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
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 2.68% on average per year.
EPS Next Y4.97%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y4.85%
Revenue Next 3Y2.68%
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
The Price/Earnings ratio is 10.95, which indicates a very decent valuation of TRTX.
TRTX's Price/Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 66.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, TRTX is valued rather cheaply.
A Price/Forward Earnings ratio of 7.99 indicates a rather cheap valuation of TRTX.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 7.99 |
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 | 8.24 | ||
| 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.
The decent profitability rating of TRTX may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)N/A
EPS Next 2Y8.89%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.54%, TRTX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.24, TRTX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, 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
TRTX pays out 175.66% of its income as dividend. This is not a sustainable payout ratio.
DP175.66%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
9.09
-0.02 (-0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75.74%
Inst Owner Change-5.52%
Ins Owners2.28%
Ins Owner Change-1.76%
Market Cap711.38M
Revenue(TTM)327.61M
Net Income(TTM)52.20M
Analysts78.18
Price Target10.33 (13.64%)
Short Float %6.79%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.54% |
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)1.54%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)3.98%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 7.99 | ||
| P/S | 2.18 | ||
| P/FCF | 8.24 | ||
| P/OCF | 7.83 | ||
| P/B | 0.66 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 13.5 |
EPS(TTM)0.83
EY9.13%
EPS(NY)1.14
Fwd EY12.52%
FCF(TTM)1.1
FCFY12.14%
OCF(TTM)1.16
OCFY12.77%
SpS4.17
BVpS13.77
TBVpS13.58
PEG (NY)2.2
PEG (5Y)N/A
Graham Number16.04
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
WACC6.64%
ROIC/WACC0.74
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 Y4.97%
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 Year3.11%
Revenue Next 2Y4.85%
Revenue Next 3Y2.68%
Revenue Next 5YN/A
EBIT growth 1Y-16.3%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year39.47%
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 4.97% 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%.