NYSE:GPMT

Stock Analysis Report

Executive Summary

Granite Point Mortgage Trust Inc. originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States.

Snowflake

Fundamentals

Acceptable track record with moderate growth potential.


Similar Companies

Share Price & News

How has Granite Point Mortgage Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

GPMT

2.1%

US Mortgage REITs

1.0%

US Market


1 Year Return

0.9%

GPMT

-1.2%

US Mortgage REITs

8.0%

US Market

Return vs Industry: GPMT exceeded the US Mortgage REITs industry which returned -1.2% over the past year.

Return vs Market: GPMT underperformed the US Market which returned 8% over the past year.


Shareholder returns

GPMTIndustryMarket
7 Day0.9%2.1%1.0%
30 Day-1.3%0.8%-0.07%
90 Day-3.6%-0.6%-1.0%
1 Year10.4%0.9%10.0%-1.2%10.4%8.0%
3 Yearn/a39.0%0.3%46.2%36.7%
5 Yearn/a56.5%-10.1%64.3%46.2%

Price Volatility Vs. Market

How volatile is Granite Point Mortgage Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Granite Point Mortgage Trust undervalued compared to its fair value and its price relative to the market?

12.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPMT ($18.52) is trading above our estimate of fair value ($13.46)

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


Price To Earnings Ratio

PE vs Industry: GPMT is poor value based on its PE Ratio (12.8x) compared to the Mortgage REITs industry average (12.5x).

PE vs Market: GPMT is good value based on its PE Ratio (12.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: GPMT is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: GPMT is overvalued based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

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

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPMT's forecast earnings growth (15.1% per year) is above the savings rate (2.7%).

Earnings vs Market: GPMT's earnings (15.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: GPMT's revenue (14.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: GPMT's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPMT's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Granite Point Mortgage Trust performed over the past 5 years?

48.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GPMT's earnings have grown significantly by 48% per year over the past 5 years.

Accelerating Growth: GPMT's earnings growth over the past year (23.4%) is below its 5-year average (48% per year).

Earnings vs Industry: GPMT earnings growth over the past year (23.4%) exceeded the Mortgage REITs industry 5.2%.


Return on Equity

High ROE: GPMT's Return on Equity (6.6%) is considered low.


Return on Assets

ROA vs Industry: GPMT has a higher Return on Assets than the Mortgage REITs industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate GPMT's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Granite Point Mortgage Trust'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: GPMT has a low level of unsold assets or inventory.

Debt Coverage by Assets: GPMT's debt is covered by short term assets (assets are 1.369410x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Granite Point Mortgage Trust's current dividend yield, its reliability and sustainability?

9.07%

Current Dividend Yield


Dividend Yield vs Market

company9.1%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years9.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GPMT's dividend (9.07%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: GPMT's dividend (9.07%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: Whilst dividend payments have been stable, GPMT has been paying a dividend for less than 10 years.

Growing Dividend: GPMT's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.5%), GPMT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPMT's dividends in 3 years are not forecast to be well covered by earnings (101.6% payout ratio).


Next Steps

Management

What is the CEO of Granite Point Mortgage Trust's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Jack Taylor (63yo)

2.5yrs

Tenure

US$1,170,860

Compensation

Mr. John A. Taylor, also known as Jack, J.D., has been Chief Executive Officer of Granite Point Mortgage Trust Inc. since April 7, 2017 and serves as its President. Mr. Taylor has been a Global Head of Com ...


Management Age and Tenure

2.5yrs

Average Tenure

55yo

Average Age

Experienced Management: GPMT's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GPMT's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$196,72315 Aug 19
Steven Plust
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares10,600
Max PriceUS$18.56

Ownership Breakdown


Management Team

  • Jack Taylor (63yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$1.17m
  • Steven Plust (60yo)

    Chief Operating Officer

    • Tenure: 2.5yrs
    • Compensation: US$667.68k
  • Steve Alpart (55yo)

    Chief Investment Officer & Co-Head of Originations

    • Tenure: 2.5yrs
    • Compensation: US$667.68k
  • Rebecca Sandberg (47yo)

    VP, General Counsel & Secretary

    • Tenure: 0yrs
    • Compensation: US$66.53k
  • Peter Morral

    Co-Head of Originations

    • Tenure: 1.8yrs
  • Marcin Urbaszek (43yo)

    CFO & Treasurer

    • Tenure: 2.5yrs
    • Compensation: US$231.48k
  • Chris Petta

    Investor Relations Officer

    • Tenure: 0yrs
  • Michael Karber

    Deputy General Counsel & Assistant Secretary

    • Tenure: 1.8yrs

Board Members

  • Steven, Steve Kasnet (73yo)

    Chairman & Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$168.75k
  • Martin Kamarck (69yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$122.49k
  • William Sanders (69yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$118.74k
  • Tanuja Dehne (47yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$122.49k
  • Hope Woodhouse (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$118.74k
  • Tom Siering (59yo)

    Director

    • Tenure: 2.4yrs
  • Jack Taylor (63yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$1.17m
  • Bill Roth (62yo)

    Director

    • Tenure: 2.4yrs

Company Information

Granite Point Mortgage Trust Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Granite Point Mortgage Trust Inc.
  • Ticker: GPMT
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$1.016b
  • Shares outstanding: 54.85m
  • Website: https://www.gpmortgagetrust.com

Location

  • Granite Point Mortgage Trust Inc.
  • 3 Bryant Park
  • Suite 2400A
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPMTNYSE (New York Stock Exchange)YesNew Common StockUSUSDJun 2017

Biography

Granite Point Mortgage Trust Inc. originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. A ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:33
End of Day Share Price2019/10/21 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.