Granite Point Mortgage Trust Inc. Fundamental Analysis
Granite Point Mortgage Trust Inc. (GPMT-PA) shows weak financial fundamentals with a PE ratio of -1.97, profit margin of -27.25%, and ROE of -6.46%. The company generates $0.1B in annual revenue with weak year-over-year growth of 1.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -4.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GPMT-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakGPMT-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGPMT-PA trades at attractive valuation levels.
Growth Score
ModerateGPMT-PA shows steady but slowing expansion.
Financial Health Score
WeakGPMT-PA carries high financial risk with limited liquidity.
Profitability Score
WeakGPMT-PA struggles to sustain strong margins.
Key Financial Metrics
Is GPMT-PA Expensive or Cheap?
P/E Ratio
GPMT-PA trades at -1.97 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GPMT-PA's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values Granite Point Mortgage Trust Inc. at 0.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 101.23 times EBITDA. This signals the market has high growth expectations.
How Well Does GPMT-PA Make Money?
Net Profit Margin
For every $100 in sales, Granite Point Mortgage Trust Inc. keeps $-27.25 as profit after all expenses.
Operating Margin
Core operations generate -6.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.46 in profit for every $100 of shareholder equity.
ROA
Granite Point Mortgage Trust Inc. generates $-2.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Granite Point Mortgage Trust Inc. generates limited operating cash flow of $4.51M, signaling weaker underlying cash strength.
Free Cash Flow
Granite Point Mortgage Trust Inc. generates weak or negative free cash flow of $-1.87M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.04 in free cash annually.
FCF Yield
GPMT-PA converts -2.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.06
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How GPMT-PA Stacks Against Its Sector Peers
| Metric | GPMT-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.97 | 22.83 | Better (Cheaper) |
| ROE | -6.46% | 682.00% | Weak |
| Net Margin | -27.25% | 1961.00% | Weak |
| Debt/Equity | 1.79 | -17.11 (disorted) | Distorted |
| Current Ratio | 0.05 | 23.38 | Weak Liquidity |
| ROA | -2.37% | -757.00% (disorted) | Weak |
GPMT-PA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Granite Point Mortgage Trust Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.54%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-17.25%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-84.83%
Industry Style: Income, Inflation Hedge, REIT
Declining