Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis
USA - NYSE:WMC - US95790D2045 - REIT
9.18 USD
+0.39 (+4.44%)
WMC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. WMC may be in some trouble as it scores bad on both profitability and health. WMC is valued correctly, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: WMC reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: WMC reported negative operating cash flow in multiple years.
1.2 Ratios
WMC has a Return On Assets of -0.52%. This is in the lower half of the industry: WMC underperforms 75.38% of its industry peers.
WMC has a Return On Equity of -15.05%. This is amonst the worse of the industry: WMC underperforms 95.38% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Gross Margin, with a value of 1.42%, WMC is doing worse than 84.62% of the companies in the same industry.
The Profit Margin and Operating Margin are not available for WMC so they could not be analyzed.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
WMC has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for WMC is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of -0.53, WMC is doing worse than 70.77% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 3439.13, WMC is not doing good in the industry: 67.69% of the companies in the same industry are doing better.
WMC has a Debt/Equity ratio of 27.43. This is a high value indicating a heavy dependency on external financing.
WMC's Debt to Equity ratio of 27.43 is on the low side compared to the rest of the industry. WMC is outperformed by 98.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 27.43 | ||
| Debt/FCF | 3439.13 | ||
| Altman-Z | -0.53 |
ROIC/WACCN/A
WACCN/A
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.
The Current ratio of WMC (0.24) is comparable to the rest of the industry.
WMC has a Quick 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.
With a Quick ratio value of 0.24, WMC perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for WMC have decreased strongly by -43.64% in the last year.
The earnings per share for WMC have been decreasing by -36.49% on average. This is quite bad
WMC shows a strong growth in Revenue. In the last year, the Revenue has grown by 164.47%.
Measured over the past years, WMC shows a very negative growth in Revenue. The Revenue has been decreasing by -16.02% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the 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.
Compared to an average S&P500 Price/Earnings ratio of 25.83, WMC is valued rather cheaply.
The Price/Forward Earnings ratio is 7.51, which 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, WMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
WMC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WMC is more expensive than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
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 13.24, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
5.2 History
The dividend of WMC decreases each year by -31.88%.
WMC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WMC decreased recently.
Dividend Growth(5Y)-31.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WMC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 for 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.
What is the financial health of Western Asset Mortgage Capital Corporation (WMC) stock?
The financial health rating of Western Asset Mortgage Capital Corporation (WMC) is 1 / 10.
Is the dividend of Western Asset Mortgage Capital Corporation sustainable?
The dividend rating of Western Asset Mortgage Capital Corporation (WMC) is 4 / 10 and the dividend payout ratio is -77.09%.