Granite Point Mortgage Trust Inc. Fundamental Analysis (NYSE: GPMT-PA)
Granite Point Mortgage Trust Inc. Fundamental Analysis (NYSE: GPMT-PA)
Granite Point Mortgage Trust Inc. (NYSE: GPMT-PA) shows weak financial fundamentals with a PE ratio of -0.56, profit margin of -66.31%, and ROE of -15.12%. 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 -44.1/100 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 -0.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GPMT-PA's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Granite Point Mortgage Trust Inc. at 0.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 23.55 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 $-66.31 as profit after all expenses.
Operating Margin
Core operations generate -9.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-15.12 in profit for every $100 of shareholder equity.
ROA
Granite Point Mortgage Trust Inc. generates $-5.58 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 $4.26M, signaling weaker underlying cash strength.
Free Cash Flow
Granite Point Mortgage Trust Inc. generates weak or negative free cash flow of $-980.95K, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
GPMT-PA converts -1.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.98
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.15
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
-0.02
vs 25 benchmark
How GPMT-PA Stacks Against Its Sector Peers
| Metric | GPMT-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.56 | 25.81 | Better (Cheaper) |
| ROE | -15.12% | 803.00% | Weak |
| Net Margin | -66.31% | 2705.00% | Weak |
| Debt/Equity | 1.98 | -37.42 (disorted) | Distorted |
| Current Ratio | 0.13 | 39.56 | Weak Liquidity |
| ROA | -5.58% | 276.00% | 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