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Capstead Mortgage

DB:WXA
Snowflake Description

Moderate growth potential unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WXA
DB
$733M
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States. The last earnings update was 58 days ago. More info.


Add to Portfolio Compare Print
WXA Share Price and Events
7 Day Returns
-0.2%
DB:WXA
-0.2%
Global Mortgage REITs
1.8%
DE Market
1 Year Returns
7.6%
DB:WXA
1.5%
Global Mortgage REITs
-6%
DE Market
WXA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Capstead Mortgage (WXA) -0.2% 3.9% 21.4% 7.6% -12.3% -17.5%
Global Mortgage REITs -0.2% -0.3% 1.5% 1.5% 11.3% -7.8%
DE Market 1.8% 4.6% 7.4% -6% 10.1% 15.3%
1 Year Return vs Industry and Market
  • WXA outperformed the Mortgage REITs industry which returned 1.5% over the past year.
  • WXA outperformed the Market in Germany which returned -6% over the past year.
Price Volatility
WXA
Industry
5yr Volatility vs Market

Value

 Is Capstead Mortgage undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Capstead Mortgage to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Capstead Mortgage.

DB:WXA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $10.79 * 6.3%
$0.68
Book Value of Equity per Share Median Book Value from the past 5 years. $10.79
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:WXA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.288 (1 + (1- 21%) (1512.84%))
2.827
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (2 * 5.96%)
12.15%

Discounted Cash Flow Calculation for DB:WXA using Excess Returns Model Model

The calculations below outline how an intrinsic value for Capstead Mortgage is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:WXA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.3% – 12.15%) * $10.79)
$-0.63
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.63 / (12.15% - 0.23%)
$-5.32
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $10.79 + $-5.32
$5.47
DB:WXA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:WXA represents 0.88402x of NYSE:CMO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88402x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 5.47 x 0.88402
€4.83
Value per share (EUR) From above. €4.83
Current discount Discount to share price of €7.58
= -1 x (€7.58 - €4.83) / €4.83
-56.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Capstead Mortgage is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Capstead Mortgage's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Capstead Mortgage's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:WXA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.34
NYSE:CMO Share Price ** NYSE (2019-04-18) in USD $8.57
Global Mortgage REITs Industry PE Ratio Median Figure of 22 Publicly-Listed Mortgage REITs Companies 11.42x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.59x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Capstead Mortgage.

DB:WXA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CMO Share Price ÷ EPS (both in USD)

= 8.57 ÷ 0.34

25.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capstead Mortgage is overvalued based on earnings compared to the Global Mortgage REITs industry average.
  • Capstead Mortgage is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Capstead Mortgage's expected growth come at a high price?
Raw Data
DB:WXA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.52x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
17.7%per year
Global Mortgage REITs Industry PEG Ratio Median Figure of 19 Publicly-Listed Mortgage REITs Companies 1.03x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

DB:WXA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.52x ÷ 17.7%

1.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capstead Mortgage is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Capstead Mortgage's assets?
Raw Data
DB:WXA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.48
NYSE:CMO Share Price * NYSE (2019-04-18) in USD $8.57
Global Mortgage REITs Industry PB Ratio Median Figure of 36 Publicly-Listed Mortgage REITs Companies 0.99x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.84x
DB:WXA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CMO Share Price ÷ Book Value per Share (both in USD)

= 8.57 ÷ 9.48

0.9x

* Primary Listing of Capstead Mortgage.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capstead Mortgage is good value based on assets compared to the Global Mortgage REITs industry average.
X
Value checks
We assess Capstead Mortgage's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. Capstead Mortgage has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Capstead Mortgage expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Capstead Mortgage expected to grow at an attractive rate?
  • Capstead Mortgage's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Capstead Mortgage's earnings growth is expected to exceed the Germany market average.
  • Capstead Mortgage's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:WXA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:WXA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 17.7%
DB:WXA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.5%
Global Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 25.4%
Global Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 18.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:WXA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:WXA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 69 43 2
2019-12-31 60 34 2
DB:WXA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 62 165 31
2018-09-30 73 190 44
2018-06-30 80 187 52
2018-03-31 85 207 58
2017-12-31 87 212 62
2017-09-30 85 213 58
2017-06-30 88 214 58
2017-03-31 92 218 63
2016-12-31 99 215 67
2016-09-30 110 225 78
2016-06-30 114 228 83
2016-03-31 118 234 86

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Capstead Mortgage's earnings are expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
  • Capstead Mortgage's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:WXA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Capstead Mortgage Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WXA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.43 0.45 0.40 2.00
2019-12-31 0.30 0.30 0.30 2.00
DB:WXA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.34
2018-09-30 0.47
2018-06-30 0.56
2018-03-31 0.61
2017-12-31 0.65
2017-09-30 0.60
2017-06-30 0.61
2017-03-31 0.65
2016-12-31 0.70
2016-09-30 0.82
2016-06-30 0.87
2016-03-31 0.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Capstead Mortgage is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Capstead Mortgage's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Capstead Mortgage has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Capstead Mortgage performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Capstead Mortgage's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Capstead Mortgage's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Capstead Mortgage's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Capstead Mortgage's 1-year earnings growth is negative, it can't be compared to the Global Mortgage REITs industry average.
Earnings and Revenue History
Capstead Mortgage's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Capstead Mortgage Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WXA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 62.36 30.60 12.29
2018-09-30 72.72 44.19 10.99
2018-06-30 79.87 52.37 10.06
2018-03-31 85.08 57.75 10.71
2017-12-31 87.25 62.00 9.60
2017-09-30 85.47 57.86 13.72
2017-06-30 88.27 58.42 14.13
2017-03-31 92.44 62.68 14.22
2016-12-31 99.30 67.36 16.43
2016-09-30 110.45 78.29 13.97
2016-06-30 114.17 82.97 15.76
2016-03-31 117.61 86.34 15.89
2015-12-31 123.32 93.04 15.00
2015-09-30 127.33 98.41 13.89
2015-06-30 137.58 110.02 12.81
2015-03-31 148.84 122.00 12.46
2014-12-31 153.28 126.94 12.46
2014-09-30 158.01 130.79 13.74
2014-06-30 150.98 123.43 14.47
2014-03-31 144.05 94.40 14.28
2013-12-31 140.06 88.89 13.82
2013-09-30 137.45 84.91 13.11
2013-06-30 152.35 98.10 12.68
2013-03-31 167.08 132.00 13.97
2012-12-31 178.61 142.23 15.24
2012-09-30 186.53 149.17 16.22
2012-06-30 187.88 150.23 16.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Capstead Mortgage has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Capstead Mortgage used its assets less efficiently than the Global Mortgage REITs industry average last year based on Return on Assets.
  • Unable to establish if Capstead Mortgage improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Capstead Mortgage's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Capstead Mortgage has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Capstead Mortgage's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Capstead Mortgage's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Capstead Mortgage's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Capstead Mortgage's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Capstead Mortgage's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Capstead Mortgage Company Filings, last reported 3 months ago.

DB:WXA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,059.06 11,095.49 60.29
2018-09-30 1,121.09 11,731.24 31.73
2018-06-30 1,168.86 12,051.27 57.40
2018-03-31 1,192.23 12,061.32 90.30
2017-12-31 1,238.88 12,453.02 103.91
2017-09-30 1,273.40 12,590.31 95.48
2017-06-30 1,245.58 12,577.11 61.70
2017-03-31 1,260.71 12,408.75 124.64
2016-12-31 1,247.69 12,267.85 81.44
2016-09-30 1,270.11 12,576.86 86.20
2016-06-30 1,281.12 12,962.67 129.20
2016-03-31 1,283.39 12,768.02 52.86
2015-12-31 1,298.32 13,082.44 61.91
2015-09-30 1,349.43 12,893.76 100.50
2015-06-30 1,380.55 13,095.02 198.92
2015-03-31 1,396.30 13,076.30 205.90
2014-12-31 1,390.77 12,931.76 309.18
2014-09-30 1,395.75 12,868.04 441.02
2014-06-30 1,401.10 12,908.84 500.98
2014-03-31 1,378.59 12,705.69 487.50
2013-12-31 1,365.78 12,594.20 418.36
2013-09-30 1,353.10 12,733.09 236.66
2013-06-30 1,395.42 12,738.76 215.83
2013-03-31 1,490.09 12,949.38 471.62
2012-12-31 1,497.13 12,920.20 425.61
2012-09-30 1,563.83 13,394.78 500.77
2012-06-30 1,480.45 12,869.77 433.24
  • Capstead Mortgage's level of debt (1047.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (922.1% vs 1047.7% today).
  • Debt is not well covered by operating cash flow (1.5%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Capstead Mortgage's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Capstead Mortgage's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Capstead Mortgage has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.73%
Current annual income from Capstead Mortgage dividends. Estimated to be 4.2% next year.
If you bought €2,000 of Capstead Mortgage shares you are expected to receive €75 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Capstead Mortgage's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Capstead Mortgage's dividend is above the markets top 25% of dividend payers in Germany (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:WXA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Global Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 10.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:WXA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.40 2.00
2019-12-31 0.32 2.00
DB:WXA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-14 0.320 3.733
2018-12-13 0.320 4.260
2018-09-13 0.440 5.804
2018-06-14 0.560 6.510
2018-03-15 0.640 7.211
2017-12-14 0.760 8.721
2017-09-14 0.760 8.194
2017-06-15 0.840 8.367
2017-03-16 0.840 7.899
2016-12-15 0.920 8.744
2016-09-15 0.920 9.497
2016-06-09 0.920 9.262
2016-03-10 1.040 10.637
2015-12-10 1.040 11.458
2014-12-11 1.360 12.164
2014-09-11 1.360 10.659
2014-06-12 1.360 10.361
2014-03-13 1.360 10.538
2014-02-28 1.240 9.611
2014-01-29 1.240 9.780
2013-02-25 1.490 12.224
2013-01-30 1.490 12.185
2012-03-13 1.720 13.096
2012-02-24 1.760 13.164
2012-02-01 1.760 13.183
2011-12-13 1.720 13.490
2011-09-13 1.760 14.547
2011-06-14 1.920 14.624
2011-03-15 1.640 12.536
2011-03-01 1.510 11.506
2011-02-02 1.510 11.623
2010-12-09 1.560 12.310
2010-09-09 1.040 9.167
2010-06-10 1.440 12.376
2010-03-11 2.000 17.285
2010-02-26 2.240 17.598
2010-01-27 2.240 17.408
2009-12-10 2.160 15.489
2009-09-10 2.240 16.203
2009-06-11 2.320 17.595
2009-04-22 2.240 18.837

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Capstead Mortgage's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Capstead Mortgage's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Capstead Mortgage afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Capstead Mortgage has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Phil Reinsch
COMPENSATION $2,585,489
AGE 57
TENURE AS CEO 2.8 years
CEO Bio

Mr. Phillip A. Reinsch, also known as Phil, has been the Chief Executive Officer and President at Capstead Mortgage Corp. since July 14, 2016. Mr. Reinsch had been the Chief Financial Officer and Secretary of Capstead Mortgage Corp. since July 22, 2003 and since July 2003 Respectively and served as its Executive Vice President since July 2006 until July 14, 2016. Mr. Reinsch served as Treasurer of Capstead Mortgage Corp. since 2015. He served as Senior Vice President of Control of Capstead Securities Corporation IV. He has been Director of Capstead Mortgage Corp. since July 29, 2016. He served as Senior Vice President and Senior Vice President, Control of Capstead Mortgage Corp. since July 1998. He served at Capstead Mortgage Corp.'s as Vice President of Control from March 1993 to June 1998; Senior Vice President since July 2003 and as its Senior Vice President, Financial Accounting and Reporting from July 1998 to July 2003. He served as Vice President, Financial Accounting and Reporting of Capstead Mortgage Corp. from March 1993 to June 1998. Prior to that, Mr. Reinsch served at Ernst & Young LLP from July 1984 to March 1993 and also served as Audit Senior Manager.

CEO Compensation
  • Phil's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Phil's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Capstead Mortgage management team in years:

3
Average Tenure
52
Average Age
  • The tenure for the Capstead Mortgage management team is about average.
Management Team

Phil Reinsch

TITLE
President
COMPENSATION
$3M
AGE
57
TENURE
2.8 yrs

Lance Phillips

TITLE
Senior VP
COMPENSATION
$959K
AGE
44
TENURE
1.5 yrs

Robert Spears

TITLE
Executive VP & Chief Investment Officer
COMPENSATION
$2M
AGE
56
TENURE
13.3 yrs

Roy Kim

TITLE
Senior VP of Asset & Liability Management and Treasurer
COMPENSATION
$2M
AGE
48
TENURE
3.3 yrs

Lindsey Crabbe

TITLE
Manager

Bethany Lee

TITLE
Assistant Vice President of Stockholder Relations
Board of Directors Tenure

Average tenure and age of the Capstead Mortgage board of directors in years:

11.9
Average Tenure
62
Average Age
  • The average tenure for the Capstead Mortgage board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jack Biegler

TITLE
Chairman of the Board
COMPENSATION
$189K
AGE
74
TENURE
10 yrs

Phil Reinsch

TITLE
President
COMPENSATION
$3M
AGE
57
TENURE
2.8 yrs

Gary Keiser

TITLE
Independent Director
COMPENSATION
$166K
AGE
74
TENURE
15.3 yrs

Chris Mahowald

TITLE
Independent Director
COMPENSATION
$152K
AGE
56
TENURE
13.8 yrs

Michelle Goolsby

TITLE
Independent Director
COMPENSATION
$159K
AGE
60
TENURE
6.8 yrs

Mike O'Neil

TITLE
Independent Director
COMPENSATION
$148K
AGE
75
TENURE
19 yrs

Mark Whiting

TITLE
Independent Director
COMPENSATION
$143K
AGE
61
TENURE
19 yrs

Jack Bernard

TITLE
Independent Director
COMPENSATION
$147K
AGE
63
TENURE
6.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Capstead Mortgage insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
05. Feb 19 Buy John Bernard Individual 01. Feb 19 04. Feb 19 20,000 €6.60 €131,355
05. Nov 18 Buy John Bernard Individual 01. Nov 18 01. Nov 18 5,000 €6.11 €30,544
31. Oct 18 Buy Lance Phillips Individual 29. Oct 18 29. Oct 18 10,000 €5.98 €59,804
31. Oct 18 Buy Christopher Mahowald Individual 29. Oct 18 29. Oct 18 75,000 €5.94 €445,386
31. Oct 18 Buy Robert Spears Individual 29. Oct 18 29. Oct 18 20,000 €5.93 €118,615
31. Oct 18 Buy Phillip Reinsch Individual 31. Oct 18 31. Oct 18 20,000 €6.00 €119,946
31. Oct 18 Buy John Bernard Individual 29. Oct 18 29. Oct 18 5,000 €5.90 €29,512
31. Oct 18 Buy Roy Kim Individual 31. Oct 18 31. Oct 18 10,000 €5.97 €59,703
X
Management checks
We assess Capstead Mortgage's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Capstead Mortgage has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States. It invests in a portfolio of residential mortgage pass-through securities primarily consisting of short-duration adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises, or by an agency of the federal government. The company qualifies as a REIT 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 1985 and is headquartered in Dallas, Texas.

Details
Name: Capstead Mortgage Corporation
WXA
Exchange: DB
Founded: 1985
$652,158,557
85,580,126
Website: http://www.capstead.com
Address: Capstead Mortgage Corporation
8401 North Central Expressway,
Suite 800,
Dallas,
Texas, 75225,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CMO Common Stock New York Stock Exchange US USD 05. Sep 1985
DB WXA Common Stock Deutsche Boerse AG DE EUR 05. Sep 1985
NYSE CMO.PRE PFD SER E New York Stock Exchange US USD 10. May 2013
Number of employees
Current staff
Staff numbers
15
Capstead Mortgage employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 20:56
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/02/24
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.