Annaly Capital Management, Inc.
Annaly Capital Management, Inc. Fundamental Analysis
Annaly Capital Management, Inc. (NLY-PI) shows strong financial fundamentals with a PE ratio of 7.85, profit margin of 37.18%, and ROE of 14.13%. The company generates $5.0B in annual revenue with strong year-over-year growth of 13.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NLY-PI's fundamental strength across five key dimensions:
Efficiency Score
WeakNLY-PI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNLY-PI trades at attractive valuation levels.
Growth Score
ModerateNLY-PI shows steady but slowing expansion.
Financial Health Score
WeakNLY-PI carries high financial risk with limited liquidity.
Profitability Score
WeakNLY-PI struggles to sustain strong margins.
Key Financial Metrics
Is NLY-PI Expensive or Cheap?
P/E Ratio
NLY-PI trades at 7.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NLY-PI's PEG of 0.27 indicates potential undervaluation.
Price to Book
The market values Annaly Capital Management, Inc. at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -13.59 times EBITDA. This is generally considered low.
How Well Does NLY-PI Make Money?
Net Profit Margin
For every $100 in sales, Annaly Capital Management, Inc. keeps $37.18 as profit after all expenses.
Operating Margin
Core operations generate 38.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.13 in profit for every $100 of shareholder equity.
ROA
Annaly Capital Management, Inc. generates $1.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Annaly Capital Management, Inc. produces operating cash flow of $639.46M, showing steady but balanced cash generation.
Free Cash Flow
Annaly Capital Management, Inc. generates weak or negative free cash flow of $-205.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.32 in free cash annually.
FCF Yield
NLY-PI converts -1.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How NLY-PI Stacks Against Its Sector Peers
| Metric | NLY-PI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.85 | 24.23 | Better (Cheaper) |
| ROE | 14.13% | 659.00% | Weak |
| Net Margin | 37.18% | 4497.00% | Weak |
| Debt/Equity | 6.95 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.03 | 13.87 | Weak Liquidity |
| ROA | 1.49% | -1390.00% (disorted) | Weak |
NLY-PI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Annaly Capital Management, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
140.82%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
131.85%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
289.76%
Industry Style: Income, Inflation Hedge, REIT
High Growth