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 66 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 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.
With a Return On Equity value of -15.05%, WMC is not doing good in the industry: 95.38% of the companies in the same industry are doing better.
| 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.
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.
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.
The Altman-Z score of WMC (-0.53) is worse than 70.77% of its industry peers.
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.
The Debt to FCF ratio of WMC (3439.13) is worse than 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.
With a Debt to Equity ratio value of 27.43, WMC is not doing good in the industry: 98.46% of the companies in the same industry are doing better.
| 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.
With a Current ratio value of 0.24, WMC perfoms like the industry average, outperforming 52.31% of the companies in the same 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.
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.
Looking at the last year, WMC shows a very strong growth in Revenue. 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.
Based on the Price/Earnings ratio, WMC is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.67, 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.
Based on the Price/Forward Earnings ratio, WMC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WMC to the average of the S&P500 Index (23.33), 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
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 13.04. 92.31% of the companies listed in the same industry pay a better dividend than WMC!
Compared to an average S&P500 Dividend Yield of 2.35, WMC pays a better dividend.
| 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
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)-11734000
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%