Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis

NYSE:WMC • US95790D2045

9.18 USD
+0.39 (+4.44%)
Last: Dec 5, 2023, 08:25 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to WMC. WMC was compared to 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of WMC have multiple concerns. WMC is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • In the past year WMC was profitable.
  • In the past year WMC had a positive cash flow from operations.
WMC Yearly Net Income VS EBIT VS OCF VS FCFWMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

1.2 Ratios

  • The Return On Assets of WMC (-0.52%) is worse than 75.38% of its industry peers.
  • The Return On Equity of WMC (-15.05%) is worse than 95.38% of its industry peers.
Industry RankSector Rank
ROA -0.52%
ROE -15.05%
ROIC N/A
ROA(3y)-5.07%
ROA(5y)-2.65%
ROE(3y)-82.73%
ROE(5y)-46.1%
ROIC(3y)N/A
ROIC(5y)N/A
WMC Yearly ROA, ROE, ROICWMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

1.3 Margins

  • WMC has a worse Gross Margin (1.42%) than 84.62% of its industry peers.
  • The Profit Margin and Operating Margin are not available for WMC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 1.42%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
WMC Yearly Profit, Operating, Gross MarginsWMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 100 -100 200

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • The number of shares outstanding for WMC remains at a similar level compared to 1 year ago.
  • Compared to 1 year ago, WMC has a worse debt to assets ratio.
WMC Yearly Shares OutstandingWMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2M 4M 6M
WMC Yearly Total Debt VS Total AssetsWMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of -0.53, we must say that WMC is in the distress zone and has some risk of bankruptcy.
  • WMC's Altman-Z score of -0.53 is on the low side compared to the rest of the industry. WMC is outperformed by 70.77% of its industry peers.
  • The Debt to FCF ratio of WMC is 3439.13, which is on the high side as it means it would take WMC, 3439.13 years of fcf income to pay off all of its debts.
  • WMC's Debt to FCF ratio of 3439.13 is on the low side compared to the rest of the industry. WMC is outperformed by 67.69% of its industry peers.
  • WMC has a Debt/Equity ratio of 27.43. This is a high value indicating a heavy dependency on external financing.
  • WMC has a Debt to Equity ratio of 27.43. This is amonst the worse of the industry: WMC underperforms 98.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 27.43
Debt/FCF 3439.13
Altman-Z -0.53
ROIC/WACCN/A
WACCN/A
WMC Yearly LT Debt VS Equity VS FCFWMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

2.3 Liquidity

  • WMC has a Current Ratio of 0.24. This is a bad value and indicates that WMC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • WMC's Current ratio of 0.24 is in line compared to the rest of the industry. WMC outperforms 52.31% of its industry peers.
  • A Quick Ratio of 0.24 indicates that WMC may have some problems paying its short term obligations.
  • WMC's Quick ratio of 0.24 is in line compared to the rest of the industry. WMC outperforms 52.31% of its industry peers.
Industry RankSector Rank
Current Ratio 0.24
Quick Ratio 0.24
WMC Yearly Current Assets VS Current LiabilitesWMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. Growth

3.1 Past

  • The earnings per share for WMC have decreased strongly by -43.64% in the last year.
  • WMC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.49% yearly.
  • Looking at the last year, WMC shows a very strong growth in Revenue. The Revenue has grown by 164.47%.
  • WMC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -16.02% yearly.
EPS 1Y (TTM)-43.64%
EPS 3Y-53.2%
EPS 5Y-36.49%
EPS Q2Q%78.2%
Revenue 1Y (TTM)164.47%
Revenue growth 3Y-33.43%
Revenue growth 5Y-16.02%
Sales Q2Q%1205.94%

3.2 Future

  • No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-1.44%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.93%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
WMC Yearly Revenue VS EstimatesWMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M
WMC Yearly EPS VS EstimatesWMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.40, the valuation of WMC can be described as very cheap.
  • WMC's Price/Earnings ratio is rather cheap when compared to the industry. WMC is cheaper than 83.08% of the companies in the same industry.
  • WMC is valuated cheaply when we compare the Price/Earnings ratio to 27.97, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 7.51 indicates a rather cheap valuation of WMC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WMC indicates a somewhat cheap valuation: WMC is cheaper than 80.00% of the companies listed in the same industry.
  • WMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.96.
Industry RankSector Rank
PE 7.4
Fwd PE 7.51
WMC Price Earnings VS Forward Price EarningsWMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, WMC is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 89.29
EV/EBITDA N/A
WMC Per share dataWMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 6.10%, WMC is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 12.46, WMC's dividend is way lower than its industry peers. On top of this 92.31% of the companies listed in the same industry pay a better dividend than WMC!
  • WMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.79.
Industry RankSector Rank
Dividend Yield 6.1%

5.2 History

  • The dividend of WMC decreases each year by -31.88%.
  • WMC has been paying a dividend for at least 10 years, so it has a reliable track record.
  • WMC has decreased its dividend recently.
Dividend Growth(5Y)-31.88%
Div Incr Years1
Div Non Decr Years1
WMC Yearly Dividends per shareWMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

5.3 Sustainability

  • The earnings of WMC are negative and hence is the payout ratio. WMC will probably not be able to sustain this dividend level.
  • The Dividend Rate of WMC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-77.09%
EPS Next 2YN/A
EPS Next 3YN/A
WMC Yearly Income VS Free CF VS DividendWMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

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Western Asset Mortgage Capital Corporation

NYSE:WMC (12/5/2023, 8:25:54 PM)

9.18

+0.39 (+4.44%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)11-22
Earnings (Next)02-29
Inst Owners0.2%
Inst Owner Change0%
Ins Owners8.62%
Ins Owner Change0%
Market Cap55.54M
Revenue(TTM)156.15M
Net Income(TTM)-11.73M
Analysts45
Price Target17.85 (94.44%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.1%
Yearly Dividend1.82
Dividend Growth(5Y)-31.88%
DP-77.09%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)528.43%
Min Revenue beat(2)521.66%
Max Revenue beat(2)535.2%
Revenue beat(4)4
Avg Revenue beat(4)613.45%
Min Revenue beat(4)521.66%
Max Revenue beat(4)763.54%
Revenue beat(8)7
Avg Revenue beat(8)349.28%
Revenue beat(12)10
Avg Revenue beat(12)307.91%
Revenue beat(16)13
Avg Revenue beat(16)221.81%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 7.4
Fwd PE 7.51
P/S 0.36
P/FCF 89.29
P/OCF 89.29
P/B 0.71
P/tB 0.71
EV/EBITDA N/A
EPS(TTM)1.24
EY13.51%
EPS(NY)1.22
Fwd EY13.31%
FCF(TTM)0.1
FCFY1.12%
OCF(TTM)0.1
OCFY1.12%
SpS25.81
BVpS12.89
TBVpS12.89
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.52%
ROE -15.05%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 1.42%
FCFM 0.4%
ROA(3y)-5.07%
ROA(5y)-2.65%
ROE(3y)-82.73%
ROE(5y)-46.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.07
Health
Industry RankSector Rank
Debt/Equity 27.43
Debt/FCF 3439.13
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.24
Quick Ratio 0.24
Altman-Z -0.53
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.64%
EPS 3Y-53.2%
EPS 5Y-36.49%
EPS Q2Q%78.2%
EPS Next Y-1.44%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)164.47%
Revenue growth 3Y-33.43%
Revenue growth 5Y-16.02%
Sales Q2Q%1205.94%
Revenue Next Year0.93%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y87.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-93.09%
FCF growth 3YN/A
FCF growth 5Y-23.56%
OCF growth 1Y-93.09%
OCF growth 3YN/A
OCF growth 5Y-23.56%

Western Asset Mortgage Capital Corporation / WMC FAQ

What is the ChartMill fundamental rating of Western Asset Mortgage Capital Corporation (WMC) stock?

ChartMill assigns a fundamental rating of 2 / 10 to WMC.


What is the valuation status of Western Asset Mortgage Capital Corporation (WMC) stock?

ChartMill assigns a valuation rating of 5 / 10 to Western Asset Mortgage Capital Corporation (WMC). This can be considered as Fairly Valued.


Can you provide the profitability details for Western Asset Mortgage Capital Corporation?

Western Asset Mortgage Capital Corporation (WMC) has a profitability rating of 1 / 10.


Can you provide the financial health for WMC stock?

The financial health rating of Western Asset Mortgage Capital Corporation (WMC) is 1 / 10.


Can you provide the dividend sustainability for WMC stock?

The dividend rating of Western Asset Mortgage Capital Corporation (WMC) is 4 / 10 and the dividend payout ratio is -77.09%.