TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
9.16 USD
-0.05 (-0.54%)
9.16 USD
0 (0%)
TRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of TRTX get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on TRTX. This makes TRTX very considerable 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.
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 Return On Assets of 1.28%. This is amongst the best in the industry. TRTX outperforms 88.24% of its industry peers.
Looking at the Return On Equity, with a value of 4.82%, TRTX is in line with its industry, outperforming 58.82% of the companies in the same industry.
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.
Looking at the Operating Margin, with a value of 76.07%, TRTX belongs to the top of the industry, outperforming 98.53% of the companies in the same industry.
TRTX's Operating Margin has declined in the last couple of years.
TRTX has a better Gross Margin (91.36%) than 100.00% 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 | 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
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.
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
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 80.88% 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 has a Debt to FCF ratio of 33.83. This is amongst the best in the industry. TRTX outperforms 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 Debt to Equity ratio of 2.71. This is in the better half of the industry: TRTX outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 33.83 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.73
WACC6.68%
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.
Looking at the Quick ratio, with a value of 4.20, TRTX belongs to the top 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
The Earnings Per Share has grown by an impressive 169.75% over the past year.
Measured over the past years, TRTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.01% on average per year.
TRTX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.78%.
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)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 Y4.55%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y5.39%
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
TRTX is valuated reasonably with a Price/Earnings ratio of 11.04.
66.18% 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 26.39, TRTX is valued rather cheaply.
The Price/Forward Earnings ratio is 8.05, which indicates a very decent valuation of TRTX.
TRTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 70.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
TRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TRTX is cheaper than 98.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRTX indicates a rather cheap valuation: TRTX is cheaper than 80.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | 13.5 |
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)2.43
PEG (5Y)N/A
EPS Next 2Y8.89%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
TRTX has a Yearly Dividend Yield of 8.29%, which is a nice return.
With a Dividend Yield of 8.29, TRTX pays less dividend than the industry average, which is at 12.23. 88.24% of the companies listed in the same industry pay a better dividend than TRTX!
Compared to an average S&P500 Dividend Yield of 1.87, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.29% |
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%
9.16
-0.05 (-0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change-5.52%
Ins Owners2.29%
Ins Owner Change-1.76%
Market Cap716.86M
Revenue(TTM)327.61M
Net Income(TTM)52.20M
Analysts78.18
Price Target10.33 (12.77%)
Short Float %5.83%
Short Ratio8.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.29% |
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)-1.52%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-2.47%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 8.05 | ||
| P/S | 2.19 | ||
| P/FCF | 8.27 | ||
| P/OCF | 7.86 | ||
| P/B | 0.66 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 13.5 |
EPS(TTM)0.83
EY9.06%
EPS(NY)1.14
Fwd EY12.43%
FCF(TTM)1.11
FCFY12.09%
OCF(TTM)1.17
OCFY12.72%
SpS4.19
BVpS13.83
TBVpS13.64
PEG (NY)2.43
PEG (5Y)N/A
Graham Number16.07
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
WACC6.68%
ROIC/WACC0.73
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 Y4.55%
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 Year2.66%
Revenue Next 2Y5.39%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y-16.3%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year43.44%
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 4.55% 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%.