Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis
USA - NYSE:WMC - US95790D2045 - REIT
9.18 USD
+0.39 (+4.44%)
We assign a fundamental rating of 2 out of 10 to WMC. WMC was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. WMC has a bad profitability rating. Also its financial health evaluation is rather negative. WMC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WMC had positive earnings in the past year.
In the past year WMC had a positive cash flow from operations.
In multiple years WMC reported negative net income over the last 5 years.
In multiple years WMC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of WMC (-0.52%) is worse than 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
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.
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
WMC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, WMC has a worse debt to assets ratio.
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.
A Debt/Equity ratio of 27.43 is on the high side and indicates that WMC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 27.43, WMC is doing worse than 98.46% of the companies in the same industry.
| 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's Current ratio of 0.24 is in line compared to the rest of the industry. WMC outperforms 52.31% of 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.
WMC has a Quick ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
WMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.64%.
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%.
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
The Price/Earnings ratio is 7.40, which indicates a rather cheap valuation of WMC.
83.08% of the companies in the same industry are more expensive than WMC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.56, WMC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.51, the valuation of WMC can be described as very cheap.
80.00% of the companies in the same industry are more expensive than WMC, based on the Price/Forward Earnings ratio.
WMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.62.
| 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
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 11.97. 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 2.44.
| 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
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
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%.