TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - NYSE:TRTX - US87266M1071 - REIT
8.95 USD
-0.06 (-0.67%)
8.95 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. While TRTX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TRTX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, TRTX could be worth investigating further 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
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 better Return On Equity (4.82%) than 73.53% of its industry peers.
TRTX's Return On Invested Capital of 4.90% is amongst the best of the industry. TRTX outperforms 95.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRTX is above the industry average of 1.19%.
| 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 Profit Margin of 15.93%. This is amongst the best in the industry. TRTX outperforms 82.35% of its industry peers.
In the last couple of years the Profit Margin of TRTX has declined.
TRTX's Operating Margin of 76.07% is amongst the best of the industry. TRTX outperforms 98.53% of its industry peers.
In the last couple of years the Operating Margin of TRTX has declined.
TRTX's Gross Margin of 91.36% is amongst the best of the industry. TRTX outperforms 100.00% of its industry peers.
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.
The number of shares outstanding for TRTX has been increased compared to 1 year ago.
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.
The Altman-Z score of TRTX (0.24) is better than 83.82% 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.
Looking at the Debt to FCF ratio, with a value of 33.83, TRTX is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
TRTX has a Debt/Equity ratio of 2.71. This is a high value indicating a heavy dependency on external financing.
TRTX's Debt to Equity ratio of 2.71 is fine compared to the rest 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 | 0.24 |
ROIC/WACC0.73
WACC6.67%
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 has a Current ratio of 4.20. This is amongst the best in the industry. TRTX outperforms 94.12% 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 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 |
3. Growth
3.1 Past
TRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 169.75%, which is quite impressive.
The earnings per share for TRTX have been decreasing by -11.01% on average. This is quite bad
Looking at the last year, TRTX shows a very negative growth in Revenue. The Revenue has decreased by -10.78% in the last year.
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%29.23%
3.2 Future
Based on estimates for the next years, TRTX will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
Based on estimates for the next years, TRTX will show a small growth in Revenue. The Revenue will grow by 2.68% on average per year.
EPS Next Y4.97%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y4.85%
Revenue Next 3Y2.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 10.78, the valuation of TRTX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TRTX indicates a somewhat cheap valuation: TRTX is cheaper than 66.18% of the companies listed in the same industry.
TRTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 7.86, 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 64.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRTX to the average of the S&P500 Index (34.59), we can say TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 7.86 |
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 83.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 13.47 |
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)2.17
PEG (5Y)N/A
EPS Next 2Y8.89%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
TRTX has a Yearly Dividend Yield of 10.65%, which is a nice return.
Compared to an average industry Dividend Yield of 12.21, TRTX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.65% |
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%
8.95
-0.06 (-0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75.74%
Inst Owner Change5.09%
Ins Owners2.28%
Ins Owner Change-1.76%
Market Cap703.38M
Revenue(TTM)327.61M
Net Income(TTM)52.20M
Analysts78.18
Price Target10.2 (13.97%)
Short Float %7.09%
Short Ratio7.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.65% |
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)24.15%
Min Revenue beat(2)6.71%
Max Revenue beat(2)41.6%
Revenue beat(4)2
Avg Revenue beat(4)7.62%
Min Revenue beat(4)-15.5%
Max Revenue beat(4)41.6%
Revenue beat(8)4
Avg Revenue beat(8)3.45%
Revenue beat(12)5
Avg Revenue beat(12)12.62%
Revenue beat(16)9
Avg Revenue beat(16)29.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)3.68%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)3.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 7.86 | ||
| P/S | 2.15 | ||
| P/FCF | 8.11 | ||
| P/OCF | 7.71 | ||
| P/B | 0.65 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)0.83
EY9.27%
EPS(NY)1.14
Fwd EY12.72%
FCF(TTM)1.1
FCFY12.33%
OCF(TTM)1.16
OCFY12.97%
SpS4.17
BVpS13.77
TBVpS13.58
PEG (NY)2.17
PEG (5Y)N/A
Graham Number16.04
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 | 0.24 |
F-Score4
WACC6.67%
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 Y4.97%
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%29.23%
Revenue Next Year3.11%
Revenue Next 2Y4.85%
Revenue Next 3Y2.68%
Revenue Next 5YN/A
EBIT growth 1Y-16.3%
EBIT growth 3Y11.09%
EBIT growth 5Y-1.64%
EBIT Next Year39.47%
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 7 / 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 4.97% 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%.