TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
9.03 USD
-0.07 (-0.77%)
9.0076 USD
-0.02 (-0.25%)
Taking everything into account, TRTX scores 6 out of 10 in our fundamental rating. TRTX was compared to 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TRTX has only an average score on both its financial health and profitability. 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
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.
Each year in the past 5 years TRTX had a positive operating cash flow.
1.2 Ratios
TRTX's Return On Assets of 1.28% is amongst the best of the industry. TRTX outperforms 88.41% of its industry peers.
Looking at the Return On Equity, with a value of 4.82%, TRTX is in line with its industry, outperforming 57.97% of the companies in the same industry.
TRTX has a better Return On Invested Capital (4.90%) than 97.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRTX is above the industry average of 1.23%.
| 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 in the better half of the industry: TRTX outperforms 69.57% of its industry peers.
TRTX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 76.07%, TRTX belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRTX is destroying value.
TRTX has more shares outstanding than it did 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 0.25, we must say that TRTX is in the distress zone and has some risk of bankruptcy.
TRTX has a Altman-Z score of 0.25. This is in the better half of the industry: TRTX outperforms 79.71% of its industry peers.
The Debt to FCF ratio of TRTX is 33.83, which is on the high side as it means it would take TRTX, 33.83 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 33.83, TRTX belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
A Debt/Equity ratio of 2.71 is on the high side and indicates that TRTX has dependencies on debt financing.
TRTX's Debt to Equity ratio of 2.71 is fine compared to the rest of the industry. TRTX outperforms 75.36% 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 Current ratio of 4.20. This is amongst the best in the industry. TRTX outperforms 92.75% 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.
TRTX's Quick ratio of 4.20 is amongst the best of the industry. TRTX outperforms 92.75% of its industry peers.
| 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.
The Revenue for TRTX has decreased by -10.78% in the past year. This is quite bad
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 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 10.88, the valuation of TRTX can be described as very reasonable.
Based on the Price/Earnings ratio, TRTX is valued a bit cheaper than 65.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, TRTX is valued rather cheaply.
A Price/Forward Earnings ratio of 7.93 indicates a rather cheap valuation of TRTX.
TRTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRTX is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRTX to the average of the S&P500 Index (36.22), we can say TRTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 7.93 |
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 98.55% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TRTX is valued cheaply inside the industry as 81.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| 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)2.19
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.
Compared to an average industry Dividend Yield of 13.00, TRTX is paying slightly less dividend.
TRTX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| 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
175.66% of the earnings are spent on dividend by TRTX. This is not a sustainable payout ratio.
DP175.66%
EPS Next 2Y8.89%
EPS Next 3Y6.91%
9.03
-0.07 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners75.74%
Inst Owner Change-5.52%
Ins Owners2.28%
Ins Owner Change-1.76%
Market Cap706.69M
Revenue(TTM)327.61M
Net Income(TTM)52.20M
Analysts78.18
Price Target10.33 (14.4%)
Short Float %5.71%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.54% |
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)0%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-3.19%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 7.93 | ||
| P/S | 2.16 | ||
| P/FCF | 8.15 | ||
| P/OCF | 7.75 | ||
| P/B | 0.65 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)0.83
EY9.19%
EPS(NY)1.14
Fwd EY12.61%
FCF(TTM)1.11
FCFY12.27%
OCF(TTM)1.17
OCFY12.91%
SpS4.19
BVpS13.83
TBVpS13.64
PEG (NY)2.19
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
WACC6.64%
ROIC/WACC0.74
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%-3.39%
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 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 4.97% 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%.