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Great Ajax

NYSE:AJX
Snowflake Description

Good value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AJX
NYSE
$267M
Imp Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Great Ajax Corp. acquires, invests in, and manages a portfolio of residential mortgage and small balance commercial mortgage loans. The last earnings update was 74 days ago. More info.


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AJX Share Price and Events
7 Day Returns
-0.9%
NYSE:AJX
-0.3%
US Mortgage REITs
-1.2%
US Market
1 Year Returns
2.3%
NYSE:AJX
-6.9%
US Mortgage REITs
3.4%
US Market
AJX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Great Ajax (AJX) -0.9% 1.5% -1.7% 2.3% -1.7% -
US Mortgage REITs -0.3% 0.1% -2.8% -6.9% -0.8% -11.7%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • AJX outperformed the Mortgage REITs industry which returned -6.9% over the past year.
  • AJX underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
AJX
Industry
5yr Volatility vs Market

Value

 Is Great Ajax 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 Great Ajax 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 Great Ajax.

NYSE:AJX 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
= $15.61 * 10.2%
$1.59
Book Value of Equity per Share Median Book Value from the past 5 years. $15.61
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NYSE:AJX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.266 (1 + (1- 21%) (476.53%))
1.178
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.178 * 5.96%)
9.75%

Discounted Cash Flow Calculation for NYSE:AJX using Excess Returns Model Model

The calculations below outline how an intrinsic value for Great Ajax 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.

NYSE:AJX Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.2% – 9.75%) * $15.61)
$0.07
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.07 / (9.75% - 2.73%)
$1.00
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $15.61 + $1.00
$16.61
NYSE:AJX Discount to Share Price
Calculation Result
Value per share (USD) From above. $16.61
Current discount Discount to share price of $13.62
= -1 x ($13.62 - $16.61) / $16.61
18%

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

Current Discount
Amount off the current price Great Ajax is available for.
Intrinsic value
18%
Share price is $13.62 vs Future cash flow value of $16.61
Current Discount Checks
For Great Ajax to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Great Ajax's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Great Ajax's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Great Ajax's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Great Ajax's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AJX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.48
NYSE:AJX Share Price ** NYSE (2019-07-19) in USD $13.62
United States of America Mortgage REITs Industry PE Ratio Median Figure of 23 Publicly-Listed Mortgage REITs Companies 12.71x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

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

** Primary Listing of Great Ajax.

NYSE:AJX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 13.62 ÷ 1.48

9.2x

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

  • Great Ajax is good value based on earnings compared to the US Mortgage REITs industry average.
  • Great Ajax is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Great Ajax's expected growth come at a high price?
Raw Data
NYSE:AJX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
9.4%per year
United States of America Mortgage REITs Industry PEG Ratio Median Figure of 21 Publicly-Listed Mortgage REITs Companies 1.12x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:AJX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.2x ÷ 9.4%

0.97x

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

  • Great Ajax is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Great Ajax's assets?
Raw Data
NYSE:AJX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $15.95
NYSE:AJX Share Price * NYSE (2019-07-19) in USD $13.62
United States of America Mortgage REITs Industry PB Ratio Median Figure of 37 Publicly-Listed Mortgage REITs Companies 0.95x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:AJX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 13.62 ÷ 15.95

0.85x

* Primary Listing of Great Ajax.

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

  • Great Ajax is good value based on assets compared to the US Mortgage REITs industry average.
X
Value checks
We assess Great Ajax'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. Great Ajax has a total score of 4/6, 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 Great Ajax expected to perform in the next 1 to 3 years based on estimates from 4 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
9.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Great Ajax expected to grow at an attractive rate?
  • Great Ajax's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Great Ajax's earnings growth is positive but not above the United States of America market average.
  • Great Ajax's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AJX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AJX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 9.4%
NYSE:AJX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 5.9%
United States of America Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 39.9%
United States of America Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 26%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
NYSE:AJX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AJX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 64 34 3
2019-12-31 62 31 3
NYSE:AJX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 57 -4 28
2018-12-31 57 0 28
2018-09-30 56 -6 28
2018-06-30 56 -1 29
2018-03-31 54 -8 28
2017-12-31 54 -9 29
2017-09-30 53 10 28
2017-06-30 51 -9 29
2017-03-31 48 -4 28
2016-12-31 46 -5 28
2016-09-30 45 -18 30
2016-06-30 44 -10 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Great Ajax's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
  • Great Ajax's revenue is expected to grow by 5.9% 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
NYSE:AJX 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 4 Analyst Estimates (S&P Global) See Below

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

NYSE:AJX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.72 1.89 1.62 4.00
2019-12-31 1.60 1.74 1.52 4.00
NYSE:AJX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.48
2018-12-31 1.50
2018-09-30 1.49
2018-06-30 1.55
2018-03-31 1.53
2017-12-31 1.58
2017-09-30 1.58
2017-06-30 1.59
2017-03-31 1.63
2016-12-31 1.65
2016-09-30 1.86
2016-06-30 1.94

*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.
  • Unable to establish if Great Ajax will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Great Ajax'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Great Ajax has a total score of 1/6, 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 Great Ajax 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 Great Ajax'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.
  • Great Ajax's year on year earnings growth rate has been positive over the past 5 years.
  • Great Ajax's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Great Ajax's 1-year earnings growth is negative, it can't be compared to the US Mortgage REITs industry average.
Earnings and Revenue History
Great Ajax'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 Great Ajax Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AJX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 57.41 27.70 9.56
2018-12-31 56.83 28.03 9.08
2018-09-30 56.39 27.62 9.02
2018-06-30 55.78 28.51 9.31
2018-03-31 54.14 27.86 9.03
2017-12-31 53.64 28.61 8.43
2017-09-30 52.76 28.38 7.43
2017-06-30 50.65 28.57 6.44
2017-03-31 48.32 28.38 6.12
2016-12-31 46.22 27.70 5.72
2016-09-30 45.17 29.86 5.44
2016-06-30 44.17 29.88 5.10
2016-03-31 42.42 28.70 4.97
2015-12-31 37.16 24.69 4.78
2015-09-30 30.18 19.37 4.19
2014-12-31 6.81 3.72 1.35

*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.
  • Great Ajax has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Great Ajax used its assets less efficiently than the US Mortgage REITs industry average last year based on Return on Assets.
  • Unable to establish if Great Ajax 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 Great Ajax'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.
Great Ajax has a total score of 1/6, 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 Great Ajax'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 Great Ajax's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Great Ajax is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Great Ajax's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Great Ajax'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 covered by short term assets, assets are 1.1x 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 Great Ajax Company Filings, last reported 3 months ago.

NYSE:AJX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 336.68 1,271.36 41.54
2018-12-31 334.28 1,261.81 55.15
2018-09-30 332.17 1,154.83 59.76
2018-06-30 322.68 1,031.75 34.71
2018-03-31 319.64 1,038.46 47.46
2017-12-31 317.44 1,073.00 53.72
2017-09-30 295.51 857.13 43.09
2017-06-30 292.36 850.32 42.04
2017-03-31 287.14 650.97 29.84
2016-12-31 282.72 670.11 35.72
2016-09-30 281.01 535.31 23.32
2016-06-30 277.30 448.31 68.36
2016-03-31 242.20 396.53 23.89
2015-12-31 237.81 369.54 30.80
2015-09-30 233.11 328.63 28.51
2014-12-31 171.28 99.93 53.10
  • Great Ajax's level of debt (377.6%) compared to net worth is high (greater than 40%).
  • Unable to establish if Great Ajax's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Great Ajax's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Great Ajax'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. Great Ajax has a total score of 2/6, 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 Great Ajax'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
9.4%
Current annual income from Great Ajax dividends. Estimated to be 9.75% next year.
If you bought $2,000 of Great Ajax shares you are expected to receive $188 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?
  • Great Ajax's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Great Ajax's dividend is above the markets top 25% of dividend payers in United States of America (3.76%).
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
NYSE:AJX 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 4 Analyst Estimates (S&P Global) See Below
United States of America Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 10.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

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

NYSE:AJX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.37 4.00
2019-12-31 1.29 4.00
NYSE:AJX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 1.280 9.478
2019-05-07 1.280 9.062
2019-03-05 1.280 9.309
2018-11-07 1.280 9.944
2018-11-06 1.280 9.498
2018-08-07 1.200 8.961
2018-02-21 1.200 9.042
2017-11-07 1.200 8.671
2017-08-03 1.200 8.447
2017-08-01 1.200 8.590
2017-04-19 1.120 8.047
2017-03-01 1.000 7.671
2016-11-01 1.000 7.498
2016-08-04 1.000 7.299
2016-08-02 1.000 7.205
2016-05-16 1.000 7.271
2016-05-03 1.000 7.181
2016-03-29 0.960 7.680
2016-03-01 0.960 8.971
2015-11-12 0.960 8.406
2015-11-02 0.960 7.516
2015-08-13 0.880 6.777
2015-08-03 0.880 6.400
2015-05-13 0.720 5.202
2015-05-04 0.720 5.277
2015-04-17 0.640 4.474
2015-04-13 0.640 4.374
2015-03-27 0.640 4.383
2015-03-26 0.640 4.428
2015-03-17 0.640 4.452
2015-02-17 0.320 2.251

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

  • Whilst dividend payments have been stable, Great Ajax has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Great Ajax only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Great Ajax's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Great Ajax'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 Great Ajax afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Great Ajax has a total score of 3/6, 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 Great Ajax'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
Larry Mendelsohn
COMPENSATION $108,640
AGE 58
TENURE AS CEO 5.5 years
CEO Bio

Dr. Lawrence A. Mendelsohn, also known as Larry, Ph.D., serves as the Chairman and Chief Executive Officer of Great Ajax Corp. Dr. Mendelsohn founded Aspen Capital in 1995 and has been its Partner since then. Since 2002, Dr. Mendelsohn has been the Managing Member of Flanders Street Capital Management LLC. From 1998 to 2002, Dr. Mendelsohn served as President of Fog Cutter Capital Group Inc. (formerly Wilshire Real Estate Investment Trust Inc.). From 1994 to 1999, he served as President of Wilshire Financial Services Group Inc. (now known as Seterus, Inc. and owned by IBM). From 1991 to 1993, he served as Head of Emerging Markets Debt and Equity Capital Markets at Bankers Trust New York Corporation. From 1987 to 1991, he served as Head of U.S. Equity and Distressed Securities Proprietary Trading at J.P. Morgan Securities. Dr. Mendelsohn has over 25 years of experience in the mortgage markets. Since 1995, he focused on residential and commercial mortgages at Aspen Capital. Dr. Mendelsohn serves as Chairman of Golden Northwest Aluminum Holding Company, Inc. He has been a Director at Great Ajax Corp since 2014. He served as a Director at Fog Cutter Capital Group Inc. and Beverly Hills Bancorp Inc. From 1994 to 1999, he served as a Director of Wilshire Financial Services Group Inc. (now known as Seterus, Inc. and owned by IBM). From 1984 to 1987, Dr. Mendelsohn also taught Corporate Finance and Investments at the University of Southern California Marshall School of Business. He has an A.B. in Economics from the University of Chicago, an M.A. in International Politics from the University of Texas and has a Ph.D. in Finance from the University of Southern California.

CEO Compensation
  • Larry's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Larry's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Great Ajax management team in years:

5.5
Average Tenure
55
Average Age
  • The average tenure for the Great Ajax management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Larry Mendelsohn

TITLE
Chairman & CEO
COMPENSATION
$109K
AGE
58
TENURE
5.5 yrs

Russell Schaub

TITLE
President & Director
COMPENSATION
$54K
AGE
55
TENURE
5.5 yrs

Mary Doyle

TITLE
Chief Financial Officer
COMPENSATION
$454K
AGE
55
TENURE
3.3 yrs

Irving Potter

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the Great Ajax board of directors in years:

5.1
Average Tenure
58
Average Age
  • The tenure for the Great Ajax board of directors is about average.
Board of Directors

Larry Mendelsohn

TITLE
Chairman & CEO
COMPENSATION
$109K
AGE
58
TENURE
5.5 yrs

Russell Schaub

TITLE
President & Director
COMPENSATION
$54K
AGE
55
TENURE
4.5 yrs

Jonathan Handley

TITLE
Director
COMPENSATION
$108K
AGE
49
TENURE
5.1 yrs

John Ogren

TITLE
Director
COMPENSATION
$115K
AGE
59
TENURE
5.1 yrs

Steve Begleiter

TITLE
Director
AGE
57
TENURE
5.1 yrs

John Condas

TITLE
Director
COMPENSATION
$95K
AGE
58
TENURE
4.5 yrs

Paul Friedman

TITLE
Director
COMPENSATION
$95K
AGE
63
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Great Ajax'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. Great Ajax 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

Who Are The Major Shareholders Of Great Ajax Corp (NYSE:AJX)?

Today, I will be analyzing Great Ajax Corp’s (NYSE:AJX) recent ownership structure, an important but not-so-popular subject among individual investors. … Therefore, it is beneficial for us to examine AJX's ownership structure in more detail. … NYSE:AJX Ownership Summary August 7th 18

Simply Wall St -

Great Ajax Corp (NYSE:AJX): Is Now The Time To Bet On Real Estate?

operates in the real estate industry … Real estate investment trust, or a REIT, is a collective vehicle for investing in real estate that began in the US and has since been adopted worldwide as an investment asset … Real estate analysts are forecasting for the entire industry,

Simply Wall St -

Should You Buy Great Ajax Corp (NYSE:AJX) For Its Dividend?

See our latest analysis for Great Ajax 5 questions to ask before buying a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … NYSE:AJX Historical Dividend Yield Apr 30th 18 Does Great Ajax pass our checks? … Compared to its peers, Great Ajax has a yield of 8.94%, which is on the low-side for Mortgage REITs stocks.Next Steps: Keeping in mind the dividend characteristics above, Great Ajax is definitely worth considering for investors looking to build a dedicated income portfolio.

Simply Wall St -

Should You Buy Great Ajax Corp (NYSE:AJX) Now?

Great Ajax Corp (NYSE:AJX), a mortgage reits company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $14.2 and falling to the lows of $12.76. … Let’s take a look at Great Ajax’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Interested In Great Ajax Corp (NYSE:AJX)’s Upcoming $0.3 Dividend? You Have 7 Days Left

Great Ajax Corp (NYSE:AJX) will be distributing its dividend of $0.3 per share on the 30 March 2018, and will start trading ex-dividend in 7 days time on the 14 March 2018. … See our latest analysis for Great Ajax 5 questions I ask before picking a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is it the top 25% annual dividend yield payer? … NYSE:AJX Historical Dividend Yield Mar 6th 18 How does Great Ajax fare?

Simply Wall St -

Want To Invest In Great Ajax Corp (NYSE:AJX)? Here's How It Performed Lately

Check out our latest analysis for Great Ajax Commentary On AJX's Past Performance I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Let's take a look at if it is solely a result of industry tailwinds, or if Great Ajax has seen some company-specific growth. … This suggests that, in the recent industry expansion, Great Ajax has not been able to reap as much as its industry peers.What does this mean?

Simply Wall St -

Interested In Great Ajax Corp (AJX)’s Upcoming $0.3 Dividend? You Have 3 Days Left

NYSE:AJX Historical Dividend Yield Nov 13th 17 How well does Great Ajax fit our criteria? … Unfortunately, it is really too early to view Great Ajax as a dividend investment. … Whilst there are few things you may like about Great Ajax from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

Company Info

Description

Great Ajax Corp. acquires, invests in, and manages a portfolio of residential mortgage and small balance commercial mortgage loans. It also holds real estate-owned properties acquired upon the foreclosure or other settlement of its non-performing loans, as well as through outright purchases. The company elected to be taxed as a real estate investment trust for U.S. 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. Great Ajax Corp. was founded in 2014 and is based in Beaverton, Oregon.

Details
Name: Great Ajax Corp.
AJX
Exchange: NYSE
Founded: 2014
$266,797,576
$258,297,252
19,588,662
Website: http://www.great-ajax.com
Address: Great Ajax Corp.
9400 SW Beaverton-Hillsdale Highway,
Suite 131,
Beaverton,
Oregon, 97005,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AJX Common Stock New York Stock Exchange US USD 13. Feb 2015
Number of employees
Current staff
Staff numbers
0
Great Ajax employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 01:09
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
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.