TPG RE FINANCE TRUST INC (TRTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTX - US87266M1071 - REIT
9.03 USD
+0.05 (+0.56%)
9.03 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TRTX. 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make TRTX a good candidate 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.
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 86.96% of its industry peers.
TRTX's Return On Equity of 4.82% is in line compared to the rest of the industry. TRTX outperforms 57.97% of its industry peers.
With an excellent Return On Invested Capital value of 4.90%, TRTX belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRTX is above the industry average of 1.30%.
| 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
With a decent Profit Margin value of 15.93%, TRTX is doing good in the industry, outperforming 69.57% 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 98.55% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRTX is destroying value.
Compared to 1 year ago, TRTX has more shares outstanding
The number of shares outstanding for TRTX has been increased compared to 5 years ago.
The debt/assets ratio for TRTX has been reduced compared to a year ago.
2.2 Solvency
TRTX has an Altman-Z score of 0.24. 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 (0.24) is better than 79.71% 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.
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 has a Debt to Equity ratio of 2.71. This is in the better half 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 | 0.24 |
ROIC/WACC0.74
WACC6.66%
2.3 Liquidity
A Current Ratio of 4.20 indicates that TRTX has no problem at all paying its short term obligations.
TRTX's Current ratio of 4.20 is amongst the best of 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.
With an excellent Quick ratio value of 4.20, TRTX belongs to the best of the industry, outperforming 92.75% 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.
Looking at the last year, TRTX shows a very negative growth in Revenue. The Revenue has decreased by -10.78% in the last year.
TRTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.60% yearly.
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.
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
Based on the Price/Earnings ratio of 10.88, 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 65.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.28, TRTX is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.93, the valuation of TRTX can be described as very cheap.
68.12% of the companies in the same industry are more expensive than TRTX, based on the Price/Forward Earnings ratio.
TRTX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.52.
| 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 82.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 13.45 |
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)2.39
PEG (5Y)N/A
EPS Next 2Y8.89%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
TRTX has a Yearly Dividend Yield of 10.73%, which is a nice return.
TRTX's Dividend Yield is slightly below the industry average, which is at 12.09.
Compared to an average S&P500 Dividend Yield of 2.31, TRTX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.73% |
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
+0.05 (+0.56%)
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 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 | 10.73% |
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)-2.8%
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)1.79%
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 | 13.45 |
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)2.39
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 | 0.24 |
F-Score4
WACC6.66%
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 Y4.55%
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%.