New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States.
Very undervalued with reasonable growth potential.
Share Price & News
How has New Residential Investment's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 14N1's share price has been volatile over the past 3 months.
7 Day Return
DE Mortgage REITs
1 Year Return
DE Mortgage REITs
Return vs Industry: 14N1 underperformed the German Mortgage REITs industry which returned -48.4% over the past year.
Return vs Market: 14N1 underperformed the German Market which returned -17.7% over the past year.
Price Volatility Vs. Market
How volatile is New Residential Investment's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is New Residential Investment undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 14N1 (€6.12) is trading below our estimate of fair value (€20.49)
Significantly Below Fair Value: 14N1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 14N1 is good value based on its PE Ratio (5.1x) compared to the Mortgage REITs industry average (5.1x).
PE vs Market: 14N1 is good value based on its PE Ratio (5.1x) compared to the German market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: 14N1 is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: 14N1 is good value based on its PB Ratio (0.4x) compared to the XX Mortgage REITs industry average (0.5x).
How is New Residential Investment forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 14N1's forecast earnings growth (21.4% per year) is above the savings rate (-0.4%).
Earnings vs Market: 14N1's earnings (21.4% per year) are forecast to grow faster than the German market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 14N1's revenue (18.1% per year) is forecast to grow faster than the German market (4.1% per year).
High Growth Revenue: 14N1's revenue (18.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 14N1's Return on Equity is forecast to be low in 3 years time (13.3%).
How has New Residential Investment performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 14N1 has high quality earnings.
Growing Profit Margin: 14N1's current net profit margins (35.3%) are lower than last year (62.5%).
Past Earnings Growth Analysis
Earnings Trend: 14N1's earnings have grown by 17.9% per year over the past 5 years.
Accelerating Growth: 14N1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 14N1 had negative earnings growth (-42.9%) over the past year, making it difficult to compare to the Mortgage REITs industry average (14.3%).
Return on Equity
High ROE: 14N1's Return on Equity (8.4%) is considered low.
How is New Residential Investment's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: 14N1 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 14N1's debt is not covered by short term assets (assets are 0.5x debt).
Financial Institutions Analysis
Asset Level: 14N1's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if 14N1 has a sufficient allowance for bad loans.
Low Risk Liabilities: 14N1 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if 14N1 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 14N1 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if 14N1 has an appropriate level of bad loans.
What is New Residential Investment's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 14N1's dividend (29.07%) is higher than the bottom 25% of dividend payers in the German market (1.7%).
High Dividend: 14N1's dividend (29.07%) is in the top 25% of dividend payers in the German market (4.97%)
Stability and Growth of Payments
Stable Dividend: 14N1 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 14N1's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (148.6%), 14N1's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 14N1's dividends in 3 years are not forecast to be well covered by earnings (90.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Michael Nierenberg (56yo)
Michael Nierenberg is a Managing Director at Fortress. Mr. Nierenberg served as Managing Director and head of Global Mortgages and Securitized Products at Bank of America Merrill Lynch, with responsibility ...
|Chairman||6.33yrs||no data||0.26% $5.9m|
|Independent Director||0.92yr||no data||0.0045% $101.6k|
|Independent Director||6.75yrs||US$240.00k||0.0079% $177.0k|
|Independent Director||6.92yrs||US$200.00k||0.011% $241.9k|
|Independent Director||6.92yrs||US$200.00k||0.057% $1.3m|
|Independent Director||3.25yrs||US$200.00k||0.019% $417.1k|
|Independent Director||6.92yrs||US$200.00k||0.030% $677.1k|
|Independent Director||3.75yrs||US$200.00k||0.019% $421.3k|
Experienced Board: 14N1's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 14N1 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.8%.
New Residential Investment Corp.'s company bio, employee growth, exchange listings and data sources
- Name: New Residential Investment Corp.
- Ticker: 14N1
- Exchange: DB
- Founded: 2011
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$2.481b
- Listing Market Cap: US$2.237b
- Shares outstanding: 415.55m
- Website: https://www.newresi.com
Number of Employees
- New Residential Investment Corp.
- 1345 Avenue Of The Americas
- 45th Floor
- New York
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NRZ||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||May 2013|
|14N1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2013|
|0K76||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||May 2013|
|NRZ.PRA||NYSE (New York Stock Exchange)||7.50% PFD SER A||US||USD||Jun 2019|
|NRZ.PRB||NYSE (New York Stock Exchange)||7.125% CUM PFD B||US||USD||Aug 2019|
|NRZ.PRC||NYSE (New York Stock Exchange)||6.375 PFD SER C||US||USD||Feb 2020|
New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States. It operates through Origination, Servicing, MSR Related Investments, Residential Securities and Loans, and Consumer Loans segments. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, including the basic fee component of the related MSRs. It also invests in real estate securities and residential mortgage loans, as well as in consumer loans, including unsecured and homeowner loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2011 and is based in New York, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/30 23:51|
|End of Day Share Price||2020/03/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.