NasdaqCM:LOAN

Stock Analysis Report

Executive Summary

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States.

Rewards

Trading at 31.4% below its fair value

Earnings are forecast to grow 5.38% per year

Earnings grew by 12% over the past year

Risk Analysis

Dividend of 7.66% is not well covered by earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($61M)



Snowflake Analysis

Proven track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LOAN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

LOAN

0.1%

US Mortgage REITs

0.8%

US Market


1 Year Return

9.0%

LOAN

0.6%

US Mortgage REITs

17.8%

US Market

Return vs Industry: LOAN exceeded the US Mortgage REITs industry which returned 0.6% over the past year.

Return vs Market: LOAN underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

LOANIndustryMarket
7 Day1.6%0.1%0.8%
30 Day-0.9%1.3%1.8%
90 Day-0.2%4.3%4.1%
1 Year17.6%9.0%11.9%0.6%20.4%17.8%
3 Year8.1%-12.3%42.6%3.0%45.9%36.4%
5 Year140.6%68.1%58.8%-8.8%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Manhattan Bridge Capital undervalued compared to its fair value and its price relative to the market?

31.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOAN ($6.27) is trading below our estimate of fair value ($9.14)

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


Price To Earnings Ratio

PE vs Industry: LOAN is poor value based on its PE Ratio (13.6x) compared to the Mortgage REITs industry average (13.3x).

PE vs Market: LOAN is good value based on its PE Ratio (13.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: LOAN is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: LOAN is overvalued based on its PB Ratio (1.8x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is Manhattan Bridge Capital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOAN's forecast earnings growth (5.4% per year) is above the savings rate (1.7%).

Earnings vs Market: LOAN's earnings (5.4% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: LOAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if LOAN's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if LOAN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LOAN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Manhattan Bridge Capital performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOAN has high quality earnings.

Growing Profit Margin: LOAN's current net profit margins (76.5%) are higher than last year (76%).


Past Earnings Growth Analysis

Earnings Trend: LOAN's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: LOAN's earnings growth over the past year (12%) is below its 5-year average (21.9% per year).

Earnings vs Industry: LOAN earnings growth over the past year (12%) exceeded the Mortgage REITs industry 0.1%.


Return on Equity

High ROE: LOAN's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Manhattan Bridge 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: LOAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: LOAN's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Manhattan Bridge Capital's current dividend yield, its reliability and sustainability?

7.66%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Manhattan Bridge Capital before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.7%marketbottom25%1.4%markettop25%3.7%industryaverage10.0%forecastin3Years7.7%

Current dividend yield vs market & industry

Notable Dividend: LOAN's dividend (7.66%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LOAN's dividend (7.66%) is in the top 25% of dividend payers in the US market (3.72%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LOAN has been paying a dividend for less than 10 years.

Growing Dividend: LOAN'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 (104.4%), LOAN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

19.4yrs

Average board tenure


CEO

Assaf Ran (53yo)

30.9yrs

Tenure

US$392,150

Compensation

Mr. Assaf Ran founded Manhattan Bridge Capital, Inc. (formerly Dag Media Inc.) in 1989 and has been its Chairman, Chief Executive Officer and President since 1989. Mr. Ran has been the Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs Market: Assaf's total compensation ($USD392.15K) is about average for companies of similar size in the US market ($USD530.45K).

Compensation vs Earnings: Assaf's compensation has been consistent with company performance over the past year.


Board Age and Tenure

19.4yrs

Average Tenure

52yo

Average Age

Experienced Board: LOAN's board of directors are seasoned and experienced ( 19.4 years average tenure).


Insider Trading

Insider Buying: LOAN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$31,52631 Oct 19
Eran Goldshmit
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,072
Max PriceUS$6.22
BuyUS$29,98604 Jun 19
Assaf Ran
EntityIndividual
Role
Chief Executive Officer
Founder
Shares5,000
Max PriceUS$6.00
SellUS$33,35403 Apr 19
Lyron Bentovim
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,100
Max PriceUS$6.54
BuyUS$27,08114 Dec 18
Assaf Ran
EntityIndividual
Role
Chief Executive Officer
Founder
Shares5,000
Max PriceUS$5.42

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15%.


Management Team

  • Assaf Ran (53yo)

    Founder

    • Tenure: 30.9yrs
    • Compensation: US$392.15k
  • Vanessa Kao (41yo)

    CFO, VP

    • Tenure: 8.5yrs
    • Compensation: US$167.11k

Board Members

  • Assaf Ran (53yo)

    Founder

    • Tenure: 30.9yrs
    • Compensation: US$392.15k
  • Eran Goldshmit (52yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$9.00k
  • Michael Jackson (54yo)

    Independent Director

    • Tenure: 19.4yrs
    • Compensation: US$9.30k
  • Phil Michals (49yo)

    Director

    • Tenure: 0.5yrs
    • Compensation: US$1.50k
  • Lyron Bentovim (49yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$9.00k

Company Information

Manhattan Bridge Capital, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Manhattan Bridge Capital, Inc.
  • Ticker: LOAN
  • Exchange: NasdaqCM
  • Founded: 1989
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$60.561m
  • Shares outstanding: 9.66m
  • Website: https://www.manhattanbridgecapital.com

Number of Employees


Location

  • Manhattan Bridge Capital, Inc.
  • 60 Cutter Mill Road
  • Suite 205
  • Great Neck
  • New York
  • 11021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOANNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDMay 1999

Biography

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. It offers short-term, secured, and non-banking loa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:16
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.