WMC Fundamental Analysis - Western Asset Mortgage Capital Corporation

Fundamental Rating

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 has a valuation in line with the averages, but on the other hand it scores bad on growth.

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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.

1.2 Ratios

WMC has a worse Return On Assets (-0.52%) 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 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

WMC's Gross Margin of 1.42% is on the low side compared to the rest of the industry. WMC is outperformed by 84.62% of its industry peers.
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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

Compared to 1 year ago, WMC has about the same amount of shares outstanding.
WMC has a worse debt/assets ratio than last year.

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.
With a Altman-Z score value of -0.53, WMC is not doing good in the industry: 70.77% of the companies in the same industry are doing better.
WMC has a debt to FCF ratio of 3439.13. This is a negative value and a sign of low solvency as WMC would need 3439.13 years to pay back of all of its debts.
WMC has a worse Debt to FCF ratio (3439.13) than 67.69% of its industry peers.
A Debt/Equity ratio of 27.43 is on the high side and indicates that WMC has dependencies on debt 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 Rank	Sector Rank
Debt/Equity	27.43
Debt/FCF	3439.13
Altman-Z	-0.53

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

A Current Ratio of 0.24 indicates that WMC may have some problems paying its short term obligations.
WMC has a Current ratio of 0.24. This is comparable 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 Rank	Sector Rank
Current Ratio	0.24
Quick Ratio	0.24

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for WMC have decreased strongly by -43.64% in the last year.
Measured over the past years, WMC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -36.49% on average per year.
The Revenue has grown by 164.47% in the past year. This is a very strong growth!
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.

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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.
When comparing the Price/Earnings ratio of WMC to the average of the S&P500 Index (27.54), we can say WMC is valued rather cheaply.
The Price/Forward Earnings ratio is 7.51, which indicates a rather cheap valuation of WMC.
80.00% of the companies in the same industry are more expensive than WMC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WMC to the average of the S&P500 Index (24.31), we can say WMC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.4
Fwd PE	7.51

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 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

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5. Dividend

5.1 Amount

WMC has a Yearly Dividend Yield of 6.10%, which is a nice return.
With a Dividend Yield of 6.10, WMC pays less dividend than the industry average, which is at 10.90. 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 1.92.

		Industry Rank	Sector 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.
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.
WMC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.

DP-77.09%

EPS Next 2YN/A

EPS Next 3YN/A

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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 2023-11-22/amc

Earnings (Next)02-29 2024-02-29/amc

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 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%.

Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens

Western Asset Mortgage Capital Corporation / WMC FAQ

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

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

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

Can you provide the financial health for WMC stock?

Can you provide the dividend sustainability for WMC stock?