MFA Financial, Inc. 9.000% Senior Notes Fundamental Analysis (NYSE: MFAO)
MFA Financial, Inc. 9.000% Senior Notes Fundamental Analysis (NYSE: MFAO)
MFA Financial, Inc. 9.000% Senior Notes (NYSE: MFAO) shows weak financial fundamentals with a PE ratio of -25.73, profit margin of -2.00%, and ROE of -0.66%. The company generates $0.6B 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 MFAO's fundamental strength across five key dimensions:
Efficiency Score
WeakMFAO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMFAO trades at attractive valuation levels.
Growth Score
WeakMFAO faces weak or negative growth trends.
Financial Health Score
ModerateMFAO shows balanced financial health with some risks.
Profitability Score
WeakMFAO struggles to sustain strong margins.
Key Financial Metrics
Is MFAO Expensive or Cheap?
P/E Ratio
MFAO trades at -25.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFAO's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values MFA Financial, Inc. 9.000% Senior Notes 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 MFAO Make Money?
Net Profit Margin
For every $100 in sales, MFA Financial, Inc. 9.000% Senior Notes 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. 9.000% Senior Notes 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. 9.000% Senior Notes generates strong operating cash flow of $458.10M, reflecting robust business health.
Free Cash Flow
MFA Financial, Inc. 9.000% Senior Notes generates strong free cash flow of $458.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.53 in free cash annually.
FCF Yield
MFAO 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 MFAO Stacks Against Its Sector Peers
| Metric | MFAO 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 |
MFAO 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. 9.000% Senior Notes'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