TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
8.98 USD
+0.01 (+0.11%)
8.98 USD
0 (0%)
Overall TRTX gets a fundamental rating of 6 out of 10. We evaluated TRTX against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX has an average financial health and profitability rating. TRTX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make TRTX suitable 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
- The Return On Assets of TRTX (1.28%) is better than 88.24% of its industry peers.
- With a Return On Equity value of 4.82%, TRTX perfoms like the industry average, 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.
- 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 | 1.28% | ||
| 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
- Looking at the Profit Margin, with a value of 15.93%, TRTX is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- 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.
- TRTX's Gross Margin of 91.36% is amongst the best of the industry. TRTX outperforms 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.
- TRTX has more shares outstanding than it did 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 0.24, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
- TRTX has a better Altman-Z score (0.24) than 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.
- A Debt/Equity ratio of 2.71 is on the high side and indicates that TRTX has dependencies on debt 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
- 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.
- 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.
- 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.
- 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -10.78%.
- The Revenue has been growing slightly by 0.60% on average over the past years.
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.
- The Revenue is expected to grow by 3.81% on average over the next years.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.82, the valuation of TRTX can be described as reasonable.
- Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
- TRTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 7.85, the valuation of TRTX can be described as very cheap.
- TRTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 73.53% of the companies 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 7.85 |
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.
- Based on the Price/Free Cash Flow ratio, TRTX is valued cheaper than 86.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 13.44 |
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)2.42
PEG (5Y)N/A
EPS Next 2Y9.17%
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 11.26, TRTX has a dividend in line with its industry peers.
- TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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%.