NasdaqCM:TRMT

Stock Analysis Report

Executive Summary

Tremont Mortgage Trust, a real estate investment trust (REIT), focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United States.

Snowflake

Fundamentals

Good value with reasonable growth potential.

Risks

  • Tremont Mortgage Trust has significant price volatility in the past 3 months.
  • Tremont Mortgage Trust is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

NasdaqCM:TRMT

1.1%

US Mortgage REITs

2.9%

US Market


1 Year Return

-61.4%

NasdaqCM:TRMT

-9.9%

US Mortgage REITs

0.2%

US Market

TRMT underperformed the Mortgage REITs industry which returned -9.8% over the past year.

TRMT underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

TRMTIndustryMarket
7 Day2.2%1.1%2.9%
30 Day-5.8%-3.6%-2.3%
90 Day-4.3%-2.8%3.1%
1 Year-58.3%-61.4%0.2%-9.9%2.4%0.2%
3 Yearn/a31.9%-4.9%41.7%32.4%
5 Yearn/a47.3%-15.5%55.1%37.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.9x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Tremont Mortgage Trust to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Tremont Mortgage Trust to establish if it is available at substantial discount.


Price Based on Earnings

Tremont Mortgage Trust is good value based on earnings compared to the US Mortgage REITs industry average.

Tremont Mortgage Trust is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Tremont Mortgage Trust is good value based on expected growth next year.


Price Based on Value of Assets

Tremont Mortgage Trust is good value based on assets compared to the US Mortgage REITs industry average.


Next Steps

Future Growth

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

66.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tremont Mortgage Trust's revenue is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Tremont Mortgage Trust's earnings are expected to grow significantly at over 20% yearly.

Tremont Mortgage Trust's revenue growth is expected to exceed the United States of America market average.

Tremont Mortgage Trust's earnings growth is expected to exceed the United States of America market average.

Tremont Mortgage Trust's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Tremont Mortgage Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Tremont Mortgage Trust performed over the past 5 years?

303.9%

Last years revenue growth


Earnings and Revenue History


Past Earnings Growth Analysis

Unable to establish if Tremont Mortgage Trust's year on year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Unable to compare Tremont Mortgage Trust's 1-year earnings growth to the 5-year average as it has been trading publicly for less than 3 years.

Tremont Mortgage Trust has become profitable in the last year making it difficult to compare the US Mortgage REITs industry average.


Return on Equity

Tremont Mortgage Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tremont Mortgage Trust used its assets less efficiently than the US Mortgage REITs industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Tremont Mortgage Trust improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Tremont Mortgage Trust's financial position?


Financial Position Analysis

Tremont Mortgage Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Tremont Mortgage Trust's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Tremont Mortgage Trust's level of debt (213.2%) compared to net worth is high (greater than 40%).

Unable to establish if Tremont Mortgage Trust's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (0.4%, less than 20% of total debt).

Unable to confirm if the interest payments on Tremont Mortgage Trust's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

14.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Tremont Mortgage Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Tremont Mortgage Trust's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

It is too early to tell whether Tremont Mortgage Trust has stable dividend payments.

Tremont Mortgage Trust only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

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

1.9yrs

Average board tenure


CEO

David Blackman (56yo)

2.6yrs

Tenure

US$174,590

Compensation

Mr. David M. Blackman has been Chief Executive Officer at Tremont Mortgage Trust since June 1, 2017 and its Managing Trustee since March 9, 2018. He also serves as its Chief Operating Officer, President an ...


CEO Compensation Analysis

David's remuneration is lower than average for companies of similar size in United States of America.

David's compensation has increased in line with Tremont Mortgage Trust recently becoming profitable.


Board Age and Tenure

1.9yrs

Average Tenure

63yo

Average Age

The average tenure for the Tremont Mortgage Trust board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$52,25721 May 19
Joseph Morea
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares10,000
Max PriceUS$5.23
BuyUS$25,90920 May 19
David Blackman
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$5.18

Ownership Breakdown


Management Team

  • Jennifer Clark (57yo)

    Secretary

    • Tenure: 0.0yrs
  • G. Lanois (58yo)

    CFO, Treasurer & Assistant Secretary

    • Tenure: 2.6yrs
    • Compensation: US$59.00k
  • David Blackman (56yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$174.59k
  • Christopher Ranjitkar

    Director of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • John Harrington (83yo)

    Independent Trustee

    • Tenure: 1.9yrs
    • Compensation: US$71.33k
  • Joe Morea (63yo)

    Independent Trustee

    • Tenure: 1.9yrs
    • Compensation: US$73.33k
  • Adam Portnoy (49yo)

    Managing Trustee

    • Tenure: 2.6yrs
    • Compensation: US$37.83k
  • Jeffrey Somers (76yo)

    Independent Trustee

    • Tenure: 1.9yrs
    • Compensation: US$70.83k
  • David Blackman (56yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$174.59k

Company Information

Tremont Mortgage Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tremont Mortgage Trust
  • Ticker: TRMT
  • Exchange: NasdaqCM
  • Founded: 2017
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$38.423m
  • Shares outstanding: 8.19m
  • Website: https://www.trmtreit.com

Location

  • Tremont Mortgage Trust
  • Two Newton Place
  • Suite 300
  • Newton
  • Massachusetts
  • 2458
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRMTNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDSep 2017

Biography

Tremont Mortgage Trust, a real estate investment trust (REIT), focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United St ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:44
End of Day Share Price2019/08/21 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.