MFA Financial, Inc. Fundamental Analysis (NYSE: MFA-PC)
MFA Financial, Inc. (NYSE: MFA-PC) shows weak financial fundamentals with a PE ratio of -25.73, profit margin of -2.00%, and ROE of -0.66%. The company generates $0.1B in annual revenue with weak year-over-year growth of 2.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MFA-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakMFA-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMFA-PC trades at attractive valuation levels.
Growth Score
WeakMFA-PC faces weak or negative growth trends.
Financial Health Score
ModerateMFA-PC shows balanced financial health with some risks.
Profitability Score
WeakMFA-PC struggles to sustain strong margins.
Key Financial Metrics
Is MFA-PC Expensive or Cheap?
P/E Ratio
MFA-PC trades at -25.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFA-PC's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values MFA Financial, Inc. at 0.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -26.84 times EBITDA. This is generally considered low.
How Well Does MFA-PC Make Money?
Net Profit Margin
For every $100 in sales, MFA Financial, Inc. keeps $-2.00 as profit after all expenses.
Operating Margin
Core operations generate 94.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.66 in profit for every $100 of shareholder equity.
ROA
MFA Financial, Inc. generates $-0.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MFA Financial, Inc. generates strong operating cash flow of $51.62M, reflecting robust business health.
Free Cash Flow
MFA Financial, Inc. generates strong free cash flow of $51.62M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.53 in free cash annually.
FCF Yield
MFA-PC converts 78.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-25.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How MFA-PC Stacks Against Its Sector Peers
| Metric | MFA-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -25.73 | 25.26 | Better (Cheaper) |
| ROE | -0.66% | 722.00% | Weak |
| Net Margin | -2.00% | 2077.00% | Weak |
| Debt/Equity | 7.13 | -37.25 (disorted) | Distorted |
| Current Ratio | 1.50 | 91.70 | Neutral |
| ROA | -0.09% | 270.00% | Weak |
MFA-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 MFA Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
271.62%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
128.36%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
116.44%
Industry Style: Income, Inflation Hedge, REIT
High Growth