DB:7M2

Stock Analysis Report

Executive Summary

Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential and commercial mortgage-backed securities, and other mortgage-related assets.

Snowflake

Fundamentals

Fair value with limited growth.


Similar Companies

Share Price & News

How has Invesco Mortgage Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

7M2

1.9%

DE Mortgage REITs

1.7%

DE Market


1 Year Return

9.0%

7M2

-1.3%

DE Mortgage REITs

7.2%

DE Market

Return vs Industry: 7M2 exceeded the German Mortgage REITs industry which returned -1.3% over the past year.

Return vs Market: 7M2 exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

7M2IndustryMarket
7 Day0%1.9%1.7%
30 Day-1.3%0.6%2.4%
90 Day-5.8%-0.09%2.3%
1 Year22.4%9.0%9.9%-1.3%10.6%7.2%
3 Year37.7%-0.07%38.1%-0.3%18.4%8.1%
5 Year86.8%7.2%57.3%-9.5%42.3%22.9%

Price Volatility Vs. Market

How volatile is Invesco Mortgage Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Invesco Mortgage Capital undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7M2 (€13.9) is trading below our estimate of fair value (€30.78)

Significantly Below Fair Value: 7M2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7M2 is unprofitable, so we can't compare its PE Ratio to the Mortgage REITs industry average.

PE vs Market: 7M2 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7M2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7M2 is good value based on its PB Ratio (1x) compared to the XX Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is Invesco Mortgage Capital forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7M2 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 7M2 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 7M2 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 7M2's revenue (67.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 7M2's revenue (67.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7M2's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Invesco Mortgage Capital performed over the past 5 years?

35.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 7M2 is unprofitable, but has reduced losses over the past 5 years at a rate of 35.4% per year.

Accelerating Growth: Unable to compare 7M2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 7M2 is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (2.7%).


Return on Equity

High ROE: 7M2 has a negative Return on Equity (-2.21%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 7M2 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 7M2 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Invesco Mortgage Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 7M2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 7M2's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: 7M2's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 7M2 has a sufficient allowance for bad loans.

Low Risk Liabilities: 7M2 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 7M2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 7M2 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 7M2 has an appropriate level of bad loans.


Next Steps

  • Explore more healthy companies in the Diversified Financials industry.

Dividend

What is Invesco Mortgage Capital's current dividend yield, its reliability and sustainability?

11.52%

Current Dividend Yield


Dividend Yield vs Market

company11.5%marketbottom25%1.5%markettop25%3.8%industryaverage10.2%forecastin3Years11.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 7M2's dividend (11.52%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: 7M2's dividend (11.52%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: 7M2's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7M2's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 7M2 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 7M2's dividends in 3 years are not forecast to be well covered by earnings (96.1% payout ratio).


Next Steps

Management

What is the CEO of Invesco Mortgage Capital's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

John Anzalone (54yo)

2.6yrs

Tenure

0

Mr. John M. Anzalone, CFA serves as Chief Investment Officer at Invesco Agency Securities Inc. Mr. Anzalone has been the Chief Executive Officer of Invesco Mortgage Capital Inc. since March 1, 2017. He ser ...


Management Age and Tenure

1.5yrs

Average Tenure

47yo

Average Age

Experienced Management: 7M2's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

70yo

Average Age

Experienced Board: 7M2's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 7M2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$35,42823 Aug 19
Edward Hardin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,500
Max PriceUS$14.17
BuyUS$28,30719 Aug 19
Mario Clemente
EntityIndividual
Shares2,000
Max PriceUS$14.15
BuyUS$42,86314 May 19
Kevin Collins
EntityIndividual
Role
President
President
Shares3,000
Max PriceUS$14.29
BuyUS$28,50714 May 19
Brian Norris
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares2,000
Max PriceUS$14.25
BuyUS$103,28914 May 19
David Lyle
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares7,232
Max PriceUS$14.28
SellUS$173,45314 May 19
John Day
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares12,172
Max PriceUS$14.25
BuyUS$4,75730 Apr 19
Richard Phegley
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares324.11
Max PriceUS$14.69
BuyUS$8,08130 Apr 19
Brian Norris
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares555.85
Max PriceUS$14.54
BuyUS$4,12613 Feb 19
Richard Phegley
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares314.7
Max PriceUS$13.22
BuyUS$49,56904 Dec 18
Brian Norris
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares3,600
Max PriceUS$13.77

Ownership Breakdown


Management Team

  • Loren Starr (57yo)

    Executive Director

    • Tenure: 0.2yrs
  • John Anzalone (54yo)

    Chief Executive Officer

    • Tenure: 2.6yrs
  • Jason Marshall (44yo)

    Chief Investment Officer (Leave of Absence)

    • Tenure: 0yrs
  • Robert Rigsby

    VP & Secretary

    • Tenure: 0yrs
  • David Lyle (40yo)

    Chief Operating Officer

    • Tenure: 2yrs
  • Kevin Collins (39yo)

    President

    • Tenure: 2yrs
  • Brian Norris (43yo)

    Chief Investment Officer

    • Tenure: 1.1yrs
  • Richard Phegley (50yo)

    Chief Financial Officer

    • Tenure: 5.4yrs
  • Brandon Burke

    Director of Investor Relations

    • Tenure: 1.1yrs
  • Roseann Perlis (63yo)

    Chief Accounting Officer

    • Tenure: 0.9yrs

Board Members

  • Dennis Lockhart (72yo)

    Non-Executive director

    • Tenure: 2.4yrs
    • Compensation: US$148.72k
  • Jack Hardin (76yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$182.53k
  • Jim Lientz (76yo)

    Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: US$158.72k
  • Loren Starr (57yo)

    Executive Director

    • Tenure: 0.2yrs
  • Carolyn Handlon (61yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$154.91k
  • Greg McGreevey (56yo)

    Director

    • Tenure: 3.4yrs
  • John Day (70yo)

    Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: US$168.72k

Company Information

Invesco Mortgage Capital Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Invesco Mortgage Capital Inc.
  • Ticker: 7M2
  • Exchange: DB
  • Founded: 2008
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$2.231b
  • Listing Market Cap: US$2.002b
  • Shares outstanding: 142.80m
  • Website: https://www.invescomortgagecapital.com

Location

  • Invesco Mortgage Capital Inc.
  • Two Peachtree Pointe
  • Suite 1800
  • Atlanta
  • Georgia
  • 30309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IVRNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2009
7M2DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2009
0JD3LSE (London Stock Exchange)YesCommon StockGBUSDJun 2009
IVR.PRANYSE (New York Stock Exchange)PFD SER A 7.75%USUSDJul 2012
IVR.PRBNYSE (New York Stock Exchange)PFD-B FX/FLTUSUSDSep 2014
IVR.PRCNYSE (New York Stock Exchange)7.5% PFD SER CUSUSDAug 2017

Biography

Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential and commercial mortgage-backed securities, and other mortga ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:07
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.