Western Asset Mortgage Capital Corporation (WMC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:WMC • US95790D2045

9.18 USD
+0.39 (+4.44%)
Last: Dec 5, 2023, 08:25 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to WMC. WMC was compared to 70 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 it does not seem to be growing.


Dividend Valuation Growth Profitability Health

1

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.
WMC Yearly Net Income VS EBIT VS OCF VS FCFWMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

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 RankSector 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
WMC Yearly ROA, ROE, ROICWMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

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 RankSector 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
WMC Yearly Profit, Operating, Gross MarginsWMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 100 -100 200

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1

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.
WMC Yearly Shares OutstandingWMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2M 4M 6M
WMC Yearly Total Debt VS Total AssetsWMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

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.
  • WMC's Altman-Z score of -0.53 is on the low side compared to the rest of the industry. WMC is outperformed by 70.77% of its industry peers.
  • 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.
  • WMC has a Debt/Equity ratio of 27.43. This is a high value indicating a heavy dependency on external financing.
  • WMC has a worse Debt to Equity ratio (27.43) than 98.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 27.43
Debt/FCF 3439.13
Altman-Z -0.53
ROIC/WACCN/A
WACCN/A
WMC Yearly LT Debt VS Equity VS FCFWMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

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'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.
  • Looking at the Quick ratio, with a value of 0.24, WMC is in line with its industry, outperforming 52.31% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.24
Quick Ratio 0.24
WMC Yearly Current Assets VS Current LiabilitesWMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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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%.
  • 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%.
  • 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.
WMC Yearly Revenue VS EstimatesWMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M
WMC Yearly EPS VS EstimatesWMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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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.
  • Based on the Price/Earnings ratio, WMC is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 28.32. WMC is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 7.51 indicates a rather cheap valuation of WMC.
  • 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 (25.57), we can say WMC is valued rather cheaply.
Industry RankSector Rank
PE 7.4
Fwd PE 7.51
WMC Price Earnings VS Forward Price EarningsWMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 89.29
EV/EBITDA N/A
WMC Per share dataWMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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 11.00. 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 1.83, WMC pays a better dividend.
Industry RankSector 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
WMC Yearly Dividends per shareWMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

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
WMC Yearly Income VS Free CF VS DividendWMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M -300M

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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%.