New Residential Investment Corp. Fundamental Analysis (NYSE: NRZ)
New Residential Investment Corp. (NYSE: NRZ) shows moderate financial fundamentals with a PE ratio of 19.80, profit margin of 24.75%, and ROE of 3.99%. The company generates $1.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NRZ's fundamental strength across five key dimensions:
Efficiency Score
WeakNRZ struggles to generate sufficient returns from assets.
Valuation Score
ModerateNRZ shows balanced valuation metrics.
Growth Score
ModerateNRZ shows steady but slowing expansion.
Financial Health Score
ModerateNRZ shows balanced financial health with some risks.
Profitability Score
WeakNRZ struggles to sustain strong margins.
Key Financial Metrics
Is NRZ Expensive or Cheap?
P/E Ratio
NRZ trades at 19.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NRZ's PEG of 6.96 indicates potential overvaluation.
Price to Book
The market values New Residential Investment Corp. at 0.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.05 times EBITDA. This is generally considered low.
How Well Does NRZ Make Money?
Net Profit Margin
For every $100 in sales, New Residential Investment Corp. keeps $24.75 as profit after all expenses.
Operating Margin
Core operations generate -97.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.99 in profit for every $100 of shareholder equity.
ROA
New Residential Investment Corp. generates $0.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New Residential Investment Corp. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
New Residential Investment Corp. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
NRZ converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How NRZ Stacks Against Its Sector Peers
| Metric | NRZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.80 | 25.26 | Better (Cheaper) |
| ROE | 3.99% | 722.00% | Weak |
| Net Margin | 24.75% | 2077.00% | Weak |
| Debt/Equity | 0.82 | -37.25 (disorted) | Distorted |
| Current Ratio | 0.33 | 91.70 | Weak Liquidity |
| ROA | 0.64% | 270.00% | Weak |
NRZ outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews New Residential Investment Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT