TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
8.97 USD
-0.14 (-1.54%)
8.97 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TRTX. TRTX was compared to 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. TRTX may be a bit undervalued, certainly considering the very reasonable score on growth This makes TRTX very considerable 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.
- The reported net income has been mixed in the past 5 years: TRTX reported negative net income in multiple years.
- TRTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.28%, TRTX belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- TRTX has a Return On Equity (4.82%) which 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 1.28%.
| 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's Profit Margin of 15.93% is fine compared to the rest of the industry. TRTX outperforms 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.
- In the last couple of years the Operating Margin of TRTX has declined.
- With an excellent Gross Margin value of 91.36%, TRTX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- TRTX's Gross Margin has been stable in the last couple of years.
| 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
- 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
- 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.
- The Altman-Z score of TRTX (0.25) is better 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'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
- A Current Ratio of 4.20 indicates that TRTX has no problem at all paying its short term obligations.
- TRTX has a better Current ratio (4.20) than 92.65% of its industry peers.
- TRTX has a Quick Ratio of 4.20. This indicates that TRTX is financially healthy and has no problem in meeting 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.
- The earnings per share for TRTX have been decreasing by -11.01% on average. This is quite bad
- 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
- TRTX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
- The Revenue is expected to grow by 3.81% on average over the next years.
EPS Next Y4.55%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year1.27%
Revenue Next 2Y5.48%
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
- TRTX is valuated reasonably with a Price/Earnings ratio of 10.81.
- Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than 67.65% of the companies in the same industry.
- TRTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- TRTX is valuated cheaply with a Price/Forward Earnings ratio of 7.88.
- 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.
- TRTX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 7.88 |
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 | 8.1 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of TRTX may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)N/A
EPS Next 2Y8.89%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
- TRTX has a Yearly Dividend Yield of 10.54%, which is a nice return.
- With a Dividend Yield of 10.54, TRTX pays less dividend than the industry average, which is at 11.30. 86.76% of the companies listed in the same industry pay a better dividend than TRTX!
- Compared to an average S&P500 Dividend Yield of 1.81, 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%
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%.