NYSE:CMO

Stock Analysis Report

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Market Cap

US$616.0m

Last Updated

2021/07/28 01:54 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Second-rate dividend payer with questionable track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CMO's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.6%

CMO

0.2%

US Mortgage REITs

0.9%

US Market


1 Year Return

6.2%

CMO

36.2%

US Mortgage REITs

37.8%

US Market

Return vs Industry: CMO underperformed the US Mortgage REITs industry which returned 38.3% over the past year.

Return vs Market: CMO underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

CMOIndustryMarket
7 Day3.6%0.2%0.9%
30 Day0.8%-6.4%0.3%
90 Day-3.0%-3.4%2.1%
1 Year17.3%6.2%49.0%36.2%40.0%37.8%
3 Year-3.3%-24.0%4.7%-22.7%63.8%53.5%
5 Year-5.1%-36.6%40.3%-17.1%124.6%99.7%

Long-Term 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?

8.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CMO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CMO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CMO is poor value based on its PE Ratio (8.2x) compared to the US Mortgage REITs industry average (8x).

PE vs Market: CMO is good value based on its PE Ratio (8.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CMO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CMO's PB Ratio (0.9x) is in line with the US Mortgage REITs industry average.


Future Growth

How is Capstead Mortgage forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMO's forecast earnings growth (7.5% per year) is above the savings rate (2%).

Earnings vs Market: CMO's earnings (7.5% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: CMO's revenue (1.8% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CMO's revenue (1.8% per year) is forecast to grow slower 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


Past Performance

How has Capstead Mortgage performed over the past 5 years?

-57.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMO has high quality earnings.

Growing Profit Margin: CMO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CMO's earnings have declined by 57.4% per year over the past 5 years.

Accelerating Growth: CMO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CMO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (53.6%).


Return on Equity

High ROE: CMO's Return on Equity (10.4%) is considered low.


Financial Health

How is Capstead Mortgage's financial position?


Financial Position Analysis

Short Term Liabilities: CMO's short term assets ($464.5M) do not cover its short term liabilities ($6.9B).

Long Term Liabilities: CMO's short term assets ($464.5M) exceed its long term liabilities ($98.5M).


Debt to Equity History and Analysis

Debt Level: CMO's debt to equity ratio (766.9%) is considered high.

Reducing Debt: CMO's debt to equity ratio has reduced from 995.1% to 766.9% over the past 5 years.

Debt Coverage: CMO's debt is not well covered by operating cash flow (2.3%).

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


Balance Sheet


Dividend

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

9.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMO's dividend (9.43%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: CMO's dividend (9.43%) is in the top 25% of dividend payers in the US market (3.53%)


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: At its current payout ratio (77.1%), CMO's payments are 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

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

4.4yrs

Average management tenure


CEO

Phil Reinsch (60 yo)

5yrs

Tenure

US$2,033,572

Compensation

Mr. Phillip A. Reinsch, also known as Phil, has been the Chief Executive Officer and President at Capstead Mortgage Corporation since July 14, 2016. Mr. Reinsch had been the Chief Financial Officer and Sec...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD2.03M) is about average for companies of similar size in the US market ($USD2.41M).

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


Leadership Team

Experienced Management: CMO's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: CMO's board of directors are seasoned and experienced ( 12.6 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$615.953m
  • Shares outstanding: 96.85m
  • 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


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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 01:54
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.