Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States.
High growth potential unattractive dividend payer.
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: CMO.PRE has not had significant price volatility in the past 3 months.
7 Day Return
US Mortgage REITs
1 Year Return
US Mortgage REITs
Return vs Industry: CMO.PRE matched the US Mortgage REITs industry which returned 2.1% over the past year.
Return vs Market: CMO.PRE underperformed the US Market which returned 10.2% over the past year.
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
Is Capstead Mortgage undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: CMO.PRE ($25.4) is trading above our estimate of fair value ($12.78)
Significantly Below Fair Value: CMO.PRE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CMO.PRE is unprofitable, so we can't compare its PE Ratio to the Mortgage REITs industry average.
PE vs Market: CMO.PRE is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CMO.PRE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CMO.PRE is good value based on its PB Ratio (0.9x) compared to the US Mortgage REITs industry average (1x).
How is Capstead Mortgage forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CMO.PRE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: CMO.PRE is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CMO.PRE's is expected to become profitable in the next 3 years.
Revenue vs Market: CMO.PRE's revenue (91.6% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: CMO.PRE'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: CMO.PRE's Return on Equity is forecast to be low in 3 years time (6.4%).
How has Capstead Mortgage performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMO.PRE is currently unprofitable.
Growing Profit Margin: CMO.PRE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CMO.PRE is unprofitable, and losses have increased over the past 5 years at a rate of -47.5% per year.
Accelerating Growth: Unable to compare CMO.PRE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CMO.PRE is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (11.8%).
Return on Equity
High ROE: CMO.PRE has a negative Return on Equity (-3.29%), as it is currently unprofitable.
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
Inventory Level: CMO.PRE has a low level of unsold assets or inventory.
Debt Coverage by Assets: CMO.PRE'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: CMO.PRE has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: CMO.PRE has been profitable on average in the past, therefore cash runway is not a concern.
Financial Institutions Analysis
Asset Level: CMO.PRE's level of assets compared to its equity is moderate.
Allowance for Bad Loans: Insufficient data to determine if CMO.PRE has a sufficient allowance for bad loans.
Low Risk Liabilities: CMO.PRE reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if CMO.PRE has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CMO.PRE has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if CMO.PRE has an appropriate level of bad loans.
What is Capstead Mortgage's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CMO.PRE's dividend (7.52%) is higher than the bottom 25% of dividend payers in the US market (1.53%).
High Dividend: CMO.PRE's dividend (7.52%) is in the top 25% of dividend payers in the US market (3.96%)
Stability and Growth of Payments
Stable Dividend: CMO.PRE's dividend payments have been volatile in the past 10 years.
Growing Dividend: CMO.PRE's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: CMO.PRE is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: CMO.PRE's dividends in 3 years are not forecast to be well covered by earnings (105.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Phil Reinsch (58yo)
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 about average for companies of similar size in the US market ($USD2.58M).
Compensation vs Earnings: Phil's compensation has increased whilst the company is unprofitable.
|Senior VP||2.3yrs||US$959.39k||0.084% $606.7k|
|Executive VP & Chief Investment Officer||14.1yrs||US$2.48m||0.60% $4.3m|
|Senior VP of Asset & Liability Management and Treasurer||4.1yrs||US$1.66m||0.17% $1.2m|
|Manager||0yrs||no data||no data|
|Assistant Vice President of Stockholder Relations||0yrs||no data||no data|
Experienced Management: CMO.PRE's management team is considered experienced (3.8 years average tenure).
|Independent Director||7.7yrs||US$159.00k||0.059% $423.1k|
|Independent Director||19.8yrs||US$143.00k||0.081% $585.9k|
|Independent Director||19.8yrs||US$148.00k||0.086% $618.1k|
|Independent Director||14.7yrs||US$152.00k||0.27% $1.9m|
|Independent Director||16.1yrs||US$165.50k||0.080% $580.0k|
|Independent Director||7.4yrs||US$147.00k||0.093% $669.9k|
|Independent Chairman of the Board||10.8yrs||US$189.00k||0.10% $733.6k|
Experienced Board: CMO.PRE's board of directors are seasoned and experienced ( 12.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Capstead Mortgage Corporation's company bio, employee growth, exchange listings and data sources
- Name: Capstead Mortgage Corporation
- Ticker: CMO.PRE
- Exchange: NYSE
- Founded: 1985
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$721.453m
- Shares outstanding: 96.19m
- Website: https://www.capstead.com
Number of Employees
- Capstead Mortgage Corporation
- 8401 North Central Expressway
- Suite 800
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CMO||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Sep 1985|
|WXA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 1985|
|WXA||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||Sep 1985|
|CMO.PRE||NYSE (New York Stock Exchange)||PFD SER E||US||USD||May 2013|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/28 01:58|
|End of Day Share Price||2020/02/27 00:00|
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.