NYSE:CMO

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Executive Summary

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


Snowflake Analysis

Limited growth 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: CMO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

CMO

5.1%

US Mortgage REITs

1.0%

US Market


1 Year Return

-37.3%

CMO

-47.0%

US Mortgage REITs

4.1%

US Market

Return vs Industry: CMO exceeded the US Mortgage REITs industry which returned -47% over the past year.

Return vs Market: CMO underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

CMOIndustryMarket
7 Day3.9%5.1%1.0%
30 Day8.2%11.3%5.4%
90 Day-35.8%-49.7%-5.7%
1 Year-32.1%-37.3%-40.6%-47.0%6.5%4.1%
3 Year-39.8%-51.2%-30.9%-50.8%28.3%19.8%
5 Year-35.2%-56.8%-12.7%-50.6%52.2%35.0%

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

Valuation

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

0.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CMO ($5.12) is trading above our estimate of fair value ($2.75)

Significantly Below Fair Value: CMO is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CMO is overvalued based on its PB Ratio (0.8x) compared to the US Mortgage REITs industry average (0.6x).


Next Steps

Future Growth

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

120.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CMO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CMO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CMO's revenue (117.7% per year) is forecast to grow faster than the US market (8.9% per year).

High Growth Revenue: CMO's revenue (117.7% per year) 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 CMO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Capstead Mortgage performed over the past 5 years?

-58.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMO is currently unprofitable.

Growing Profit Margin: CMO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CMO is unprofitable, and losses have increased over the past 5 years at a rate of -58.7% per year.

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

Earnings vs Industry: CMO is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-42.8%).


Return on Equity

High ROE: CMO has a negative Return on Equity (-27.53%), as it is currently unprofitable.


Next Steps

Financial Health

How is Capstead Mortgage's financial position?


Financial Position Analysis

Short Term Liabilities: CMO's short term assets ($909.7M) do not cover its short term liabilities ($8.5B).

Long Term Liabilities: CMO's short term assets ($909.7M) exceed its long term liabilities ($98.4M).


Debt to Equity History and Analysis

Debt Level: CMO's debt to equity ratio (1011%) is considered high.

Reducing Debt: CMO's debt to equity ratio has increased from 936.8% to 1011% over the past 5 years.

Debt Coverage: CMO's debt is not well covered by operating cash flow (1.7%).

Interest Coverage: Insufficient data to determine if CMO's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

11.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMO's dividend (11.72%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: CMO's dividend (11.72%) is in the top 25% of dividend payers in the US market (4.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


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

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

4.1yrs

Average management tenure


CEO

Phil Reinsch (58yo)

3.83yrs

Tenure

US$1,934,066

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 ($USD1.93M) is about average for companies of similar size in the US market ($USD2.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Phillip Reinsch
President3.83yrsUS$1.93m0.44% $2.2m
Lance Phillips
Senior VP2.58yrsUS$1.06m0.094% $465.3k
Robert Spears
Executive VP & Chief Investment Officer13.83yrsUS$1.86m0.60% $3.0m
Roy Kim
Senior VP of Asset & Liability Management and Treasurer4.33yrsUS$1.33m0.17% $837.5k
Lindsey Crabbe
Managerno datano datano data
Bethany Lee
Assistant Vice President of Stockholder Relationsno datano datano data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: CMO's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phillip Reinsch
President3.83yrsUS$1.93m0.44% $2.2m
Michelle Goolsby
Independent Director7.92yrsUS$170.00k0.050% $246.8k
Mark Whiting
Independent Director20.08yrsUS$152.00k0.073% $358.0k
Michael O'Neil
Independent Director20.08yrsUS$159.00k0.076% $374.9k
Christopher Mahowald
Independent Director14.92yrsUS$162.00k0.26% $1.3m
Gary Keiser
Independent Director16.33yrsUS$175.50k0.072% $354.0k
Jack Biegler
Independent Chairman of the Board11.08yrsUS$200.00k0.093% $458.8k

14.9yrs

Average Tenure

62yo

Average Age

Experienced Board: CMO's board of directors are seasoned and experienced ( 14.9 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Capstead Mortgage Corporation
  • Ticker: CMO
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$493.541m
  • Shares outstanding: 96.39m
  • 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
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 Analysis2020/05/26 04:26
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
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.