Dynex Capital, Inc. Fundamental Analysis
Dynex Capital, Inc. (DX) shows strong financial fundamentals with a PE ratio of 10.57, profit margin of 34.75%, and ROE of 11.05%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 4.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.4/100 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's fundamental strength across five key dimensions:
Efficiency Score
WeakDX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDX trades at attractive valuation levels.
Growth Score
WeakDX faces weak or negative growth trends.
Financial Health Score
WeakDX carries high financial risk with limited liquidity.
Profitability Score
ModerateDX maintains healthy but balanced margins.
Key Financial Metrics
Is DX Expensive or Cheap?
P/E Ratio
DX trades at 10.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DX's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Dynex Capital, Inc. at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -20.37 times EBITDA. This is generally considered low.
How Well Does DX Make Money?
Net Profit Margin
For every $100 in sales, Dynex Capital, Inc. keeps $34.75 as profit after all expenses.
Operating Margin
Core operations generate 1.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.05 in profit for every $100 of shareholder equity.
ROA
Dynex Capital, Inc. generates $0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dynex Capital, Inc. generates strong operating cash flow of $139.58M, reflecting robust business health.
Free Cash Flow
Dynex Capital, Inc. generates strong free cash flow of $139.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.92 in free cash annually.
FCF Yield
DX converts 9.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How DX Stacks Against Its Sector Peers
| Metric | DX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.57 | 22.83 | Better (Cheaper) |
| ROE | 11.05% | 682.00% | Weak |
| Net Margin | 34.75% | 1961.00% | Weak |
| Debt/Equity | 7.73 | -17.11 (disorted) | Distorted |
| Current Ratio | 0.06 | 23.38 | Weak Liquidity |
| ROA | 0.99% | -757.00% (disorted) | Weak |
DX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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
136.72%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
124.90%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-97.26%
Industry Style: Income, Inflation Hedge, REIT
Declining