Invesco Mortgage Capital Inc. Fundamental Analysis (NYSE: IVR-PC)
Invesco Mortgage Capital Inc. Fundamental Analysis (NYSE: IVR-PC)
Invesco Mortgage Capital Inc. (NYSE: IVR-PC) shows moderate financial fundamentals with a PE ratio of -87.00, profit margin of 27.40%, and ROE of -3.25%. The company generates $-0.0B in annual revenue with moderate year-over-year growth of 3.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IVR-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakIVR-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIVR-PC trades at attractive valuation levels.
Growth Score
WeakIVR-PC faces weak or negative growth trends.
Financial Health Score
WeakIVR-PC carries high financial risk with limited liquidity.
Profitability Score
ModerateIVR-PC maintains healthy but balanced margins.
Key Financial Metrics
Is IVR-PC Expensive or Cheap?
P/E Ratio
IVR-PC trades at -87.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IVR-PC's PEG of 0.78 indicates potential undervaluation.
Price to Book
The market values Invesco Mortgage Capital Inc. at 0.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -30.61 times EBITDA. This is generally considered low.
How Well Does IVR-PC Make Money?
Net Profit Margin
For every $100 in sales, Invesco Mortgage Capital Inc. keeps $27.40 as profit after all expenses.
Operating Margin
Core operations generate -1.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.25 in profit for every $100 of shareholder equity.
ROA
Invesco Mortgage Capital Inc. generates $-0.37 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 limited operating cash flow of $11.37M, signaling weaker underlying cash strength.
Free Cash Flow
Invesco Mortgage Capital Inc. generates weak or negative free cash flow of $11.37M, restricting financial flexibility.
FCF Per Share
Each share generates $1.69 in free cash annually.
FCF Yield
IVR-PC converts 36.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-87.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
-4.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How IVR-PC Stacks Against Its Sector Peers
| Metric | IVR-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -87.00 | 25.26 | Better (Cheaper) |
| ROE | -3.25% | 722.00% | Weak |
| Net Margin | 27.40% | 2077.00% | Weak |
| Debt/Equity | 7.57 | -37.25 (disorted) | Distorted |
| Current Ratio | 0.03 | 91.70 | Weak Liquidity |
| ROA | -0.37% | 270.00% | Weak |
IVR-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 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
105.40%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
101.59%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-75.85%
Industry Style: Income, Inflation Hedge, REIT
Declining