TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - NYSE:TRTX - US87266M1071 - REIT
8.9 USD
+0.12 (+1.37%)
8.9 USD
0 (0%)
Overall TRTX gets a fundamental rating of 6 out of 10. We evaluated TRTX against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While TRTX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
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
TRTX's Return On Assets of 1.26% is amongst the best of the industry. TRTX outperforms 86.36% of its industry peers.
TRTX has a Return On Equity of 4.81%. This is in the better half of the industry: TRTX outperforms 77.27% of its industry peers.
The Return On Invested Capital of TRTX (4.82%) is better than 95.45% 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 | 1.26% | ||
| 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
TRTX has a Profit Margin of 15.90%. This is amongst the best in the industry. TRTX outperforms 86.36% of its industry peers.
TRTX's Profit Margin has declined in the last couple of years.
The Operating Margin of TRTX (76.27%) is better than 98.48% of its industry peers.
In the last couple of years the Operating Margin of TRTX has declined.
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.
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 | 76.27% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRTX is destroying value.
Compared to 1 year ago, TRTX has more shares outstanding
TRTX has more shares outstanding than it did 5 years ago.
TRTX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.24, TRTX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of TRTX is 33.84, which is on the high side as it means it would take TRTX, 33.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TRTX (33.84) is better than 77.27% of its industry peers.
TRTX has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.77, TRTX is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 33.84 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.72
WACC6.67%
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.
TRTX has a Current ratio of 4.38. This is amongst the best in the industry. TRTX outperforms 95.45% of its industry peers.
TRTX has a Quick Ratio of 4.38. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
TRTX has a Quick ratio of 4.38. This is amongst the best in the industry. TRTX outperforms 95.45% of its industry peers.
| 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.
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 -12.32% 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)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.
The Revenue is expected to grow by 2.68% on average over the next years.
EPS Next Y5.19%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y4.64%
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 10.35, which indicates a very decent valuation of TRTX.
68.18% of the companies in the same industry are more expensive than TRTX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.77, TRTX is valued rather cheaply.
TRTX is valuated cheaply with a Price/Forward Earnings ratio of 7.89.
Based on the Price/Forward Earnings ratio, TRTX is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRTX to the average of the S&P500 Index (23.23), we can say TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTX is valued cheaper than 96.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRTX is valued cheaply inside the industry as 80.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 13.32 |
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)1.99
PEG (5Y)N/A
EPS Next 2Y8.4%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.27%, TRTX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.07, TRTX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.27% |
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 175.50% of its income as dividend. This is not a sustainable payout ratio.
DP175.5%
EPS Next 2Y8.4%
EPS Next 3Y6.91%
8.9
+0.12 (+1.37%)
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-0.06%
Ins Owners2.28%
Ins Owner Change-1.76%
Market Cap699.45M
Revenue(TTM)329.67M
Net Income(TTM)52.43M
Analysts78.18
Price Target10.2 (14.61%)
Short Float %6.25%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.27% |
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)-1.56%
EPS NQ rev (3m)2.44%
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 7.89 | ||
| P/S | 2.12 | ||
| P/FCF | 7.83 | ||
| P/OCF | 7.52 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 13.32 |
EPS(TTM)0.86
EY9.66%
EPS(NY)1.13
Fwd EY12.68%
FCF(TTM)1.14
FCFY12.77%
OCF(TTM)1.18
OCFY13.31%
SpS4.19
BVpS13.88
TBVpS13.68
PEG (NY)1.99
PEG (5Y)N/A
Graham Number16.39
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%
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 | 2.77 | ||
| 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 | 0.24 |
F-Score4
WACC6.67%
ROIC/WACC0.72
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 Year3.11%
Revenue Next 2Y4.64%
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%