Dynex Capital, Inc. Fundamental Analysis (NYSE: DX)
Dynex Capital, Inc. (NYSE: DX) shows weak financial fundamentals with a PE ratio of 50.30, profit margin of -4.65%, and ROE of -1.74%. The company generates $1.1B 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's fundamental strength across five key dimensions:
Efficiency Score
WeakDX struggles to generate sufficient returns from assets.
Valuation Score
ModerateDX shows balanced valuation metrics.
Growth Score
ExcellentDX delivers strong and consistent growth momentum.
Financial Health Score
WeakDX carries high financial risk with limited liquidity.
Profitability Score
WeakDX struggles to sustain strong margins.
Key Financial Metrics
Is DX Expensive or Cheap?
P/E Ratio
DX trades at 50.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DX'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 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 $233.12M, showing steady but balanced cash generation.
Free Cash Flow
Dynex Capital, Inc. generates strong free cash flow of $233.12M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.94 in free cash annually.
FCF Yield
DX 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 Stacks Against Its Sector Peers
| Metric | DX 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 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