TPG RE Finance Trust, Inc. Fundamental Analysis (NYSE: TRTX-PC)
TPG RE Finance Trust, Inc. Fundamental Analysis (NYSE: TRTX-PC)
TPG RE Finance Trust, Inc. (NYSE: TRTX-PC) shows moderate financial fundamentals with a PE ratio of 14.58, profit margin of 21.76%, and ROE of 5.45%. The company generates $0.3B in annual revenue with weak year-over-year growth of -5.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRTX-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakTRTX-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTRTX-PC trades at attractive valuation levels.
Growth Score
WeakTRTX-PC faces weak or negative growth trends.
Financial Health Score
WeakTRTX-PC carries high financial risk with limited liquidity.
Profitability Score
ModerateTRTX-PC maintains healthy but balanced margins.
Key Financial Metrics
Is TRTX-PC Expensive or Cheap?
P/E Ratio
TRTX-PC trades at 14.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TRTX-PC's PEG of -0.95 indicates potential undervaluation.
Price to Book
The market values TPG RE Finance Trust, Inc. at 0.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -10.52 times EBITDA. This is generally considered low.
How Well Does TRTX-PC Make Money?
Net Profit Margin
For every $100 in sales, TPG RE Finance Trust, Inc. keeps $21.76 as profit after all expenses.
Operating Margin
Core operations generate 70.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.45 in profit for every $100 of shareholder equity.
ROA
TPG RE Finance Trust, Inc. generates $1.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TPG RE Finance Trust, Inc. generates strong operating cash flow of $93.82M, reflecting robust business health.
Free Cash Flow
TPG RE Finance Trust, Inc. generates strong free cash flow of $83.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.08 in free cash annually.
FCF Yield
TRTX-PC converts 13.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TRTX-PC Stacks Against Its Sector Peers
| Metric | TRTX-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.58 | 23.73 | Better (Cheaper) |
| ROE | 5.45% | 762.00% | Weak |
| Net Margin | 21.76% | 2564.00% | Weak |
| Debt/Equity | 3.36 | -36.87 (disorted) | Distorted |
| Current Ratio | 0.44 | 38.39 | Weak Liquidity |
| ROA | 1.26% | 256.00% | Weak |
TRTX-PC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TPG RE Finance Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
297.83%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
142.62%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-33.87%
Industry Style: Income, Inflation Hedge, REIT
Declining