NYSE:DX

Stock Analysis Report

Executive Summary

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States.

Snowflake

Fundamentals

Limited growth unattractive dividend payer.


Similar Companies

Share Price & News

How has Dynex Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

DX

1.9%

US Mortgage REITs

0.07%

US Market


1 Year Return

-11.1%

DX

-1.3%

US Mortgage REITs

8.9%

US Market

Return vs Industry: DX underperformed the US Mortgage REITs industry which returned -1.3% over the past year.

Return vs Market: DX underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

DXIndustryMarket
7 Day1.4%1.9%0.07%
30 Day4.6%0.6%-0.3%
90 Day-10.4%-0.1%-1.6%
1 Year1.4%-11.1%9.9%-1.3%11.3%8.9%
3 Year3.2%-27.1%38.4%-0.08%46.3%36.8%
5 Year11.4%-38.9%57.3%-9.5%62.1%44.3%

Price Volatility Vs. Market

How volatile is Dynex Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dynex Capital undervalued compared to its fair value and its price relative to the market?

0.86x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DX ($15.46) is trading above our estimate of fair value ($7.96)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DX is good value based on its PB Ratio (0.9x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is Dynex Capital forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

115.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: DX's revenue (49.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: DX's revenue (49.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DX's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Dynex Capital performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DX is unprofitable, and losses have increased over the past 5 years at a rate of -19.4% per year.

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

Earnings vs Industry: DX is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (5.2%).


Return on Equity

High ROE: DX has a negative Return on Equity (-37.44%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Dynex Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DX has a low level of unsold assets or inventory.

Debt Coverage by Assets: DX's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: DX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DX has a sufficient allowance for bad loans.

Low Risk Liabilities: DX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DX has an appropriate level of bad loans.


Next Steps

Dividend

What is Dynex Capital's current dividend yield, its reliability and sustainability?

11.64%

Current Dividend Yield


Dividend Yield vs Market

company11.6%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years12.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DX's dividend (11.64%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DX's dividend (11.64%) is in the top 25% of dividend payers in the US market (3.68%)

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: DX's dividends in 3 years are not forecast to be well covered by earnings (94.3% payout ratio).


Next Steps

Management

What is the CEO of Dynex Capital's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Byron Boston (60yo)

5.8yrs

Tenure

US$1,751,298

Compensation

Mr. Byron L. Boston has been the Chief Executive Officer and Co-Chief Investment Officer of Dynex Capital, Inc. since January 01, 2014. Mr. Boston has been the President of Dynex Capital, Inc. since March ...


CEO Compensation Analysis

Compensation vs. Market: Byron's total compensation ($USD1.75M) is about average for companies of similar size in the US market ($USD1.81M).

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


Management Age and Tenure

5.8yrs

Average Tenure

56yo

Average Age

Experienced Management: DX's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: DX's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$58,71316 Aug 19
Stephen Benedetti
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares4,000
Max PriceUS$14.68
BuyUS$20,56616 Aug 19
Smriti Popenoe
EntityIndividual
Role
Co-Chief Investment Officer
Executive VP & Co-Chief Investment Officer
Shares1,400
Max PriceUS$14.69
BuyUS$100,30031 Jan 19
Byron Boston
EntityIndividual
Role
Chief Executive Officer
President
Shares5,666.67
Max PriceUS$17.70
BuyUS$20,00131 Jan 19
Valerie Mosley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,130
Max PriceUS$17.70
BuyUS$59,00031 Jan 19
Stephen Benedetti
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares3,333.33
Max PriceUS$17.70
BuyUS$14,99831 Jan 19
Smriti Popenoe
EntityIndividual
Role
Co-Chief Investment Officer
Executive VP & Co-Chief Investment Officer
Shares847.33
Max PriceUS$17.70
BuyUS$11,80031 Jan 19
David Stevens
EntityIndividual
Role
Member of the Board of Directors
Director
Shares666.67
Max PriceUS$17.70

Ownership Breakdown


Management Team

  • Steve Benedetti (56yo)

    Executive VP

    • Tenure: 11.4yrs
    • Compensation: US$918.05k
  • Byron Boston (60yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$1.75m
  • Jeffrey Childress

    VP & Controller

    • Tenure: 0yrs
  • Alison Griffin

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Smriti Popenoe (50yo)

    Executive VP & Co-Chief Investment Officer

    • Tenure: 5.8yrs
    • Compensation: US$916.47k
  • Wayne Brockwell

    Senior Vice President of Portfolio

    • Tenure: 0yrs

Board Members

  • Barry Igdaloff (64yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$146.00k
  • Dave Stevens (62yo)

    Director

    • Tenure: 0.8yrs
  • Byron Boston (60yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$1.75m
  • Michael Hughes (58yo)

    Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: US$151.00k
  • Valerie Mosley (59yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$131.00k
  • Robert Salcetti (64yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$131.00k

Company Information

Dynex Capital, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dynex Capital, Inc.
  • Ticker: DX
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$381.170m
  • Shares outstanding: 24.66m
  • Website: https://www.dynexcapital.com

Number of Employees


Location

  • Dynex Capital, Inc.
  • 4991 Lake Brook Drive
  • Suite 100
  • Glen Allen
  • Virginia
  • 23060
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1988
DYT1DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1988
DX.PRANYSE (New York Stock Exchange)PFD SER AUSUSDJul 2012
DX.PRBNYSE (New York Stock Exchange)PFD SER B 7.625%USUSDApr 2013

Biography

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of re ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:34
End of Day Share Price2019/10/22 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.