Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- WMC had positive earnings in the past year.
- WMC had a positive operating cash flow in the past year.
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.
- 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
- The Gross Margin of WMC (1.42%) is worse than 84.62% of its industry peers.
- WMC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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
- The number of shares outstanding for WMC remains at a similar level compared to 1 year ago.
- The debt/assets ratio for WMC is higher compared to a year ago.
2.2 Solvency
- WMC has an Altman-Z score of -0.53. This is a bad value and indicates that WMC is not financially healthy and even 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.
- 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 has a Debt to FCF ratio of 3439.13. This is in the lower half of the industry: WMC underperforms 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.
- The Debt to Equity ratio of WMC (27.43) is worse than 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.
- WMC has a Current ratio (0.24) which is in line with its industry peers.
- 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.
- The Quick ratio of WMC (0.24) is comparable to the rest of the 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.
- WMC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.49% yearly.
- WMC shows a strong growth in Revenue. In the last year, 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.
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.
- Compared to the rest of the industry, the Price/Earnings ratio of WMC indicates a rather cheap valuation: WMC is cheaper than 83.08% of the companies listed in the same industry.
- WMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 7.51, the valuation of WMC can be described as very cheap.
- 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.
- When comparing the Price/Forward Earnings ratio of WMC to the average of the S&P500 Index (25.98), 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 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.
- With a Dividend Yield of 6.10, WMC pays less dividend than the industry average, which is at 11.26. 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 1.82.
| 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.
- WMC has decreased its dividend recently.
Dividend Growth(5Y)-31.88%
Div Incr Years1
Div Non Decr Years1
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.
- 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
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%.