Dynex Capital, Inc. Fundamental Analysis (NYSE: DX-PC)
Dynex Capital, Inc. (NYSE: DX-PC) shows weak financial fundamentals with a PE ratio of 50.30, profit margin of -4.65%, and ROE of -1.74%. The company generates $0.3B in annual revenue with strong year-over-year growth of 67.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DX-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakDX-PC struggles to generate sufficient returns from assets.
Valuation Score
ModerateDX-PC shows balanced valuation metrics.
Growth Score
ExcellentDX-PC delivers strong and consistent growth momentum.
Financial Health Score
WeakDX-PC carries high financial risk with limited liquidity.
Profitability Score
WeakDX-PC struggles to sustain strong margins.
Key Financial Metrics
Is DX-PC Expensive or Cheap?
P/E Ratio
DX-PC trades at 50.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DX-PC's PEG of -0.59 indicates potential undervaluation.
Price to Book
The market values Dynex Capital, Inc. at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -34.61 times EBITDA. This is generally considered low.
How Well Does DX-PC Make Money?
Net Profit Margin
For every $100 in sales, Dynex Capital, Inc. keeps $-4.65 as profit after all expenses.
Operating Margin
Core operations generate 67.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.74 in profit for every $100 of shareholder equity.
ROA
Dynex Capital, Inc. generates $-0.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dynex Capital, Inc. produces operating cash flow of $59.43M, showing steady but balanced cash generation.
Free Cash Flow
Dynex Capital, Inc. generates strong free cash flow of $59.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.94 in free cash annually.
FCF Yield
DX-PC converts 8.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How DX-PC Stacks Against Its Sector Peers
| Metric | DX-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.30 | 25.31 | Worse (Expensive) |
| ROE | -1.74% | 723.00% | Weak |
| Net Margin | -4.65% | 2531.00% | Weak |
| Debt/Equity | 7.93 | -37.99 (disorted) | Distorted |
| Current Ratio | 0.04 | 51.51 | Weak Liquidity |
| ROA | -0.18% | 278.00% | Weak |
DX-PC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dynex Capital, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-57.24%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-66.54%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-87.07%
Industry Style: Income, Inflation Hedge, REIT
Declining