Invesco Mortgage Capital Inc.
Invesco Mortgage Capital Inc. Fundamental Analysis
Invesco Mortgage Capital Inc. (IVR) shows strong financial fundamentals with a PE ratio of 5.67, profit margin of 42.17%, and ROE of 13.35%. The company generates $0.3B in annual revenue with strong year-over-year growth of 17.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IVR's fundamental strength across five key dimensions:
Efficiency Score
WeakIVR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIVR trades at attractive valuation levels.
Growth Score
ModerateIVR shows steady but slowing expansion.
Financial Health Score
WeakIVR carries high financial risk with limited liquidity.
Profitability Score
ModerateIVR maintains healthy but balanced margins.
Key Financial Metrics
Is IVR Expensive or Cheap?
P/E Ratio
IVR trades at 5.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IVR's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Invesco Mortgage Capital Inc. at 0.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -15.39 times EBITDA. This is generally considered low.
How Well Does IVR Make Money?
Net Profit Margin
For every $100 in sales, Invesco Mortgage Capital Inc. keeps $42.17 as profit after all expenses.
Operating Margin
Core operations generate 1.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.35 in profit for every $100 of shareholder equity.
ROA
Invesco Mortgage Capital Inc. generates $1.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Invesco Mortgage Capital Inc. generates strong operating cash flow of $104.08M, reflecting robust business health.
Free Cash Flow
Invesco Mortgage Capital Inc. generates strong free cash flow of $104.08M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.47 in free cash annually.
FCF Yield
IVR converts 15.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.010
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How IVR Stacks Against Its Sector Peers
| Metric | IVR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.67 | 24.23 | Better (Cheaper) |
| ROE | 13.35% | 659.00% | Weak |
| Net Margin | 42.17% | 4497.00% | Weak |
| Debt/Equity | 7.05 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.01 | 13.87 | Weak Liquidity |
| ROA | 1.56% | -1390.00% (disorted) | Weak |
IVR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Invesco Mortgage Capital Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-92.00%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-95.93%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-86.80%
Industry Style: Income, Inflation Hedge, REIT
Declining