DB:WXA

Stock Analysis Report

Executive Summary

Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States.


Snowflake Analysis

High growth potential unattractive dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WXA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

38.9%

WXA

23.7%

DE Mortgage REITs

7.3%

DE Market


1 Year Return

-42.5%

WXA

-48.4%

DE Mortgage REITs

-17.7%

DE Market

Return vs Industry: WXA exceeded the German Mortgage REITs industry which returned -48.4% over the past year.

Return vs Market: WXA underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

WXAIndustryMarket
7 Day38.9%23.7%7.3%
30 Day-33.4%-45.1%-17.9%
90 Day-38.6%-48.4%-25.8%
1 Year-39.6%-42.5%-43.5%-48.4%-15.1%-17.7%
3 Year-46.6%-55.4%-32.1%-50.1%-18.7%-25.6%
5 Year-40.2%-59.1%-17.1%-51.6%-17.7%-29.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

15.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WXA (€4.36) is trading below our estimate of fair value (€5.15)

Significantly Below Fair Value: WXA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: WXA 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 WXA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WXA is overvalued based on its PB Ratio (0.6x) compared to the XX Mortgage REITs industry average (0.5x).


Next Steps

Future Growth

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

103.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WXA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: WXA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WXA's is expected to become profitable in the next 3 years.

Revenue vs Market: WXA's revenue (91.6% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: WXA's revenue (91.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WXA's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Capstead Mortgage performed over the past 5 years?

-47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WXA is currently unprofitable.

Growing Profit Margin: WXA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WXA is unprofitable, and losses have increased over the past 5 years at a rate of -47.5% per year.

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

Earnings vs Industry: WXA is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (14.3%).


Return on Equity

High ROE: WXA has a negative Return on Equity (-3.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Capstead Mortgage'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: WXA has a low level of unsold assets or inventory.

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WXA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: WXA has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: WXA's level of assets compared to its equity is moderate.

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

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

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

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

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


Next Steps

Dividend

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

11.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WXA's dividend (11.9%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: WXA's dividend (11.9%) is in the top 25% of dividend payers in the German market (4.97%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: WXA's dividends in 3 years are not forecast to be well covered by earnings (105.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Phil Reinsch (58yo)

3.67s

Tenure

US$2,585,489

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD2.59M) is above average for companies of similar size in the German market ($USD1.03M).

Compensation vs Earnings: Phil's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Phillip Reinsch
President3.67yrsUS$2.59m0.42% $1.8m
Lance Phillips
Senior VP2.42yrsUS$959.39k0.084% $367.7k
Robert Spears
Executive VP & Chief Investment Officer14.17yrsUS$2.48m0.60% $2.6m
Roy Kim
Senior VP of Asset & Liability Management and Treasurer4.17yrsUS$1.66m0.18% $792.7k
Lindsey Crabbe
Managerno datano datano data
Bethany Lee
Assistant Vice President of Stockholder Relationsno datano datano data

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: WXA's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phillip Reinsch
President3.67yrsUS$2.59m0.42% $1.8m
Michelle Goolsby
Independent Director7.75yrsUS$159.00k0.059% $256.4k
Mark Whiting
Independent Director19.92yrsUS$143.00k0.081% $355.1k
Michael O'Neil
Independent Director19.92yrsUS$148.00k0.086% $374.6k
Christopher Mahowald
Independent Director14.75yrsUS$152.00k0.27% $1.2m
Gary Keiser
Independent Director16.17yrsUS$165.50k0.080% $351.6k
John Bernard
Independent Director7.5yrsUS$147.00k0.093% $406.0k
Jack Biegler
Independent Chairman of the Board10.92yrsUS$189.00k0.10% $444.6k

12.8yrs

Average Tenure

63yo

Average Age

Experienced Board: WXA's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Capstead Mortgage Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capstead Mortgage Corporation
  • Ticker: WXA
  • Exchange: DB
  • Founded: 1985
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$484.816m
  • Listing Market Cap: US$437.256m
  • Shares outstanding: 96.19m
  • Website: https://www.capstead.com

Number of Employees


Location

  • Capstead Mortgage Corporation
  • 8401 North Central Expressway
  • Suite 800
  • Dallas
  • Texas
  • 75225-4404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMONYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1985
WXADB (Deutsche Boerse AG)YesCommon StockDEEURSep 1985
WXABRSE (Berne Stock Exchange)YesCommon StockCHCHFSep 1985
CMO.PRENYSE (New York Stock Exchange)PFD SER EUSUSDMay 2013

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 21:40
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.