TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
NYSE:TRTX - New York Stock Exchange, Inc. - US87266M1071 - REIT - Currency: USD
Overall TRTX gets a fundamental rating of 6 out of 10. We evaluated TRTX against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX has an excellent profitability rating, but there are some minor concerns on its financial health. TRTX may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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.
In the past 5 years TRTX always reported a positive cash flow from operatings.
1.2 Ratios
TRTX has a better Return On Assets (1.60%) than 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 5.36%, TRTX is in line with its industry, outperforming 48.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.95%, TRTX belongs to the top of the industry, outperforming 95.31% 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 1.57%.
The 3 year average ROIC (5.39%) for TRTX is below the current ROIC(5.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.36% | ||
| ROIC | 5.95% |
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's Profit Margin of 16.95% is fine compared to the rest of the industry. TRTX outperforms 64.06% of its industry peers.
In the last couple of years the Profit Margin of TRTX has declined.
TRTX has a Operating Margin of 78.91%. This is amongst the best in the industry. TRTX outperforms 96.88% of its industry peers.
TRTX's Operating Margin has declined in the last couple of years.
The Gross Margin of TRTX (92.06%) is better than 98.44% 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 | 78.91% | ||
| PM (TTM) | 16.95% | ||
| GM | 92.06% |
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.
The number of shares outstanding for TRTX has been increased compared to 5 years ago.
The debt/assets ratio for TRTX has been reduced compared to a year ago.
2.2 Solvency
TRTX has an Altman-Z score of 0.32. This is a bad value and indicates that TRTX is not financially healthy and even has some risk of bankruptcy.
TRTX has a Altman-Z score of 0.32. This is amongst the best in the industry. TRTX outperforms 81.25% of its industry peers.
TRTX has a debt to FCF ratio of 24.05. This is a negative value and a sign of low solvency as TRTX would need 24.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.05, TRTX is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
A Debt/Equity ratio of 2.31 is on the high side and indicates that TRTX has dependencies on debt financing.
TRTX's Debt to Equity ratio of 2.31 is fine compared to the rest of the industry. TRTX outperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 24.05 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.85
WACC6.98%
2.3 Liquidity
TRTX has a Current Ratio of 4.65. This indicates that TRTX is financially healthy and has no problem in meeting its short term obligations.
TRTX has a Current ratio of 4.65. This is amongst the best in the industry. TRTX outperforms 92.19% of its industry peers.
A Quick Ratio of 4.65 indicates that TRTX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.65, TRTX belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.65 | ||
| Quick Ratio | 4.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 128.32% over the past year.
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 decrease in Revenue. In the last year, the revenue decreased by -9.80%.
The Revenue has been growing slightly by 0.60% on average over the past years.
EPS 1Y (TTM)128.32%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%104.88%
Revenue 1Y (TTM)-9.8%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%63.43%
3.2 Future
The Earnings Per Share is expected to grow by 11.02% on average over the next years. This is quite good.
Based on estimates for the next years, TRTX will show a small growth in Revenue. The Revenue will grow by 1.85% on average per year.
EPS Next Y15.1%
EPS Next 2Y11.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.13%
Revenue Next 2Y1.85%
Revenue Next 3YN/A
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
TRTX is valuated reasonably with a Price/Earnings ratio of 8.67.
Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TRTX to the average of the S&P500 Index (29.62), we can say TRTX is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.53, 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 rather cheap valuation: TRTX is cheaper than 81.25% 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 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.53 |
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 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TRTX is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TRTX may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y11.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TRTX has a Yearly Dividend Yield of 11.54%, which is a nice return.
Compared to an average industry Dividend Yield of 12.91, TRTX is paying slightly less dividend.
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.54% |
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 Years0
Div Non Decr Years3
5.3 Sustainability
TRTX pays out 151.57% of its income as dividend. This is not a sustainable payout ratio.
DP151.57%
EPS Next 2Y11.02%
EPS Next 3YN/A
8.32
-0.05 (-0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change-95.9%
Ins Owners3.66%
Ins Owner Change4.62%
Market Cap673.34M
Analysts80
Price Target10.2 (22.6%)
Short Float %2.92%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.54% |
Yearly Dividend1.14
Dividend Growth(5Y)-8.14%
DP151.57%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-31.29%
Min EPS beat(2)-63%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)2.25%
Min EPS beat(4)-63%
Max EPS beat(4)61.01%
EPS beat(8)3
Avg EPS beat(8)-232.89%
EPS beat(12)4
Avg EPS beat(12)-155.93%
EPS beat(16)7
Avg EPS beat(16)-116.98%
Revenue beat(2)2
Avg Revenue beat(2)12.97%
Min Revenue beat(2)6.99%
Max Revenue beat(2)18.95%
Revenue beat(4)3
Avg Revenue beat(4)7.95%
Min Revenue beat(4)-7.5%
Max Revenue beat(4)18.95%
Revenue beat(8)3
Avg Revenue beat(8)-6.85%
Revenue beat(12)7
Avg Revenue beat(12)33.44%
Revenue beat(16)11
Avg Revenue beat(16)39.5%
PT rev (1m)0.84%
PT rev (3m)1.7%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)3.85%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.53 | ||
| P/S | 1.91 | ||
| P/FCF | 6.3 | ||
| P/OCF | 6 | ||
| P/B | 0.6 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)0.96
EY11.54%
EPS(NY)1.1
Fwd EY13.28%
FCF(TTM)1.32
FCFY15.86%
OCF(TTM)1.39
OCFY16.65%
SpS4.35
BVpS13.77
TBVpS13.5
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.36% | ||
| ROCE | 7.54% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.28% | ||
| ROICexgc | 6.35% | ||
| OM | 78.91% | ||
| PM (TTM) | 16.95% | ||
| GM | 92.06% | ||
| FCFM | 30.35% |
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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 24.05 | ||
| Debt/EBITDA | 8.75 | ||
| Cap/Depr | 33.3% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 38.18% | ||
| Profit Quality | 179.01% | ||
| Current Ratio | 4.65 | ||
| Quick Ratio | 4.65 | ||
| Altman-Z | 0.32 |
F-Score7
WACC6.98%
ROIC/WACC0.85
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)128.32%
EPS 3Y-4.44%
EPS 5Y-11.01%
EPS Q2Q%104.88%
EPS Next Y15.1%
EPS Next 2Y11.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.8%
Revenue growth 3Y13.5%
Revenue growth 5Y0.6%
Sales Q2Q%63.43%
Revenue Next Year0.13%
Revenue Next 2Y1.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.43%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year34.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y42.86%
FCF growth 3Y-6.86%
FCF growth 5Y-2.58%
OCF growth 1Y39.94%
OCF growth 3Y-5.34%
OCF growth 5Y-1.62%