company background image
GPMT

Granite Point Mortgage Trust NYSE:GPMT Stock Report

Last Price

US$10.15

Market Cap

US$531.4m

7D

-1.7%

1Y

-24.3%

Updated

14 Aug, 2022

Data

Company Financials +
GPMT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends2/6

GPMT Stock Overview

Granite Point Mortgage Trust Inc., a real estate investment trust, 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.

Granite Point Mortgage Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Granite Point Mortgage Trust
Historical stock prices
Current Share PriceUS$10.15
52 Week HighUS$14.10
52 Week LowUS$8.81
Beta1.39
1 Month Change6.51%
3 Month Change1.91%
1 Year Change-24.25%
3 Year Change-44.63%
5 Year Change-46.78%
Change since IPO-46.58%

Recent News & Updates

Aug 02

9.3%-Yielding Granite Point Mortgage Is Flying Under The Radar

GPMT is a high-yielding commercial real estate lender that's reasonably leveraged, with a strong investment pipeline and favorable outlook. It maintains a safe investment portfolio comprised primarily of senior first mortgages with a healthy weighted average loan to value ratio. Meanwhile, the stock trades at a material discount to book value and offers an attractive dividend yield. Commercial mortgage REITs remain an attractive asset class with high dividend yields, even when they are supposed to benefit from the impact of rising rates. This was seen in Blackstone Mortgage Trust's (BXMT) strong Q2 results, with strong originations and bottom line growth. This brings me to Granite Point Mortgage Trust (GPMT), which hasn't yet reported its second-quarter results, but may see a similar benefit. GPMT hasn't seen the same uptick in its share price that BXMT has, and in this article, I highlight why this may present a high yield buying opportunity. Why GPMT? Granite Point Mortgage Trust is a relative newcomer to the commercial mREIT space. It went public in 2017, and last year, made the shareholder-friendly move of internalizing its management. This helps to align the interests of shareholders and management, since external managers receive a part of their compensation based on the size of AUM. GPMT maintains a broadly diversified portfolio of commercial real estate loans that are backed by 99% senior first mortgages. Its portfolio also carries a safe 63% weighted average loan to value ratio. At present, the loan portfolio carries a $3.8 billion balance spread across 103 investments. As shown below, the portfolio is diversified by geography and asset type, with office, multifamily, and hotels comprising 85% of the total balance. GPMT Portfolio Mix (Investor Presentation) GPMT is making good headway, as it resolved three of four loans on nonaccrual status during its first quarter, reducing its nonaccruals ratio to 2.7% of the total loan portfolio. It's also seeing strong interest collections, with 100% of borrowers making their contractual payments in accordance with loan agreements. Moreover, GPMT is reasonably leveraged at 2.5x debt to equity. Moreover, GPMT fully repaid $225 million of borrowings under its higher-cost senior secured term loan facilities while releasing approximately $180 million of capital through refinancing 2 de-levered legacy funding vehicles, resulting in lower cost of funds. Distributable earnings came in at $0.24 per share, and management expects these actions to improve its quarterly run-rate net interest income by $0.05 to $0.06 per share. Looking forward, GPMT maintains a strong investment pipeline worth $200 million, and management plans on taking leverage up to 3.0-3.5x to help with funding. It's also well-positioned for a rising rate environment with 98% of its portfolio being floating rate. Risks to the growth thesis include potential for market volatility in the near term, and higher interest rates may affect borrowers' finances. However, given peer BXMT's strong Q2 results, I don't see this as being much of a factor for GPMT's second-quarter results. This is also supported by management's favorable outlook in the last conference call: We continue to see a healthy flow of attractive lending opportunities and are focused on properties with favorable fundamentals. Given the ongoing uncertainties with respect to global events, the pandemic, supply chain disruptions, inflation, rising interest rates and credit spreads, we remain disciplined in our approach to investing, underwriting and loan structure. Given our liquidity and leverage, we are well positioned to take advantage of wider loan spreads and remain opportunistic in further improving our capitalization. With the amount of volatility global markets are experiencing, we believe that U.S. commercial real estate will continue to be viewed as a safe haven asset class by long-term fundamental investors. And our strategy of lending on a senior floating rate basis against institutional quality real estate should generate attractive risk adjusted returns over time. While GPMT's quarterly dividend of $0.25 per share is slightly under-covered by the $0.24 in distributable EPS last quarter, I see potential for coverage to improve due to the aforementioned management actions, which could benefit quarterly EPS by $0.05 to $0.06.

Shareholder Returns

GPMTUS Mortgage REITsUS Market
7D-1.7%2.9%3.2%
1Y-24.3%-17.6%-10.2%

Return vs Industry: GPMT underperformed the US Mortgage REITs industry which returned -17.6% over the past year.

Return vs Market: GPMT underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is GPMT's price volatile compared to industry and market?
GPMT volatility
GPMT Average Weekly Movement5.3%
Mortgage REITs Industry Average Movement5.4%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: GPMT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GPMT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201533Jack Taylorhttps://www.gpmtreit.com

Granite Point Mortgage Trust Inc., a real estate investment trust, 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. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. As of December 31, 2021, its investment portfolio includes 105 commercial real estate loan investments.

Granite Point Mortgage Trust Fundamentals Summary

How do Granite Point Mortgage Trust's earnings and revenue compare to its market cap?
GPMT fundamental statistics
Market CapUS$531.36m
Earnings (TTM)US$9.01m
Revenue (TTM)US$81.96m

59.0x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GPMT income statement (TTM)
RevenueUS$81.96m
Cost of RevenueUS$5.69m
Gross ProfitUS$76.26m
Other ExpensesUS$67.26m
EarningsUS$9.01m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin93.05%
Net Profit Margin10.99%
Debt/Equity Ratio288.5%

How did GPMT perform over the long term?

See historical performance and comparison

Dividends

9.9%

Current Dividend Yield

599%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GPMT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GPMT?

Other financial metrics that can be useful for relative valuation.

GPMT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does GPMT's PE Ratio compare to its peers?

GPMT PE Ratio vs Peers
The above table shows the PE ratio for GPMT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.4x
NREF NexPoint Real Estate Finance
7.5x19.9%US$481.3m
AFCG AFC Gamma
9.9x34.7%US$361.8m
TRTX TPG RE Finance Trust
10.1x23.3%US$802.7m
ACRE Ares Commercial Real Estate
14.1x16.3%US$751.4m
GPMT Granite Point Mortgage Trust
59x35.3%US$531.4m

Price-To-Earnings vs Peers: GPMT is expensive based on its Price-To-Earnings Ratio (59x) compared to the peer average (10.4x).


Price to Earnings Ratio vs Industry

How does GPMT's PE Ratio compare vs other companies in the US Mortgage REITs Industry?

Price-To-Earnings vs Industry: GPMT is expensive based on its Price-To-Earnings Ratio (59x) compared to the US Mortgage REITs industry average (12.5x)


Price to Earnings Ratio vs Fair Ratio

What is GPMT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GPMT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio59x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: GPMT is expensive based on its Price-To-Earnings Ratio (59x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).


Share Price vs Fair Value

What is the Fair Price of GPMT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GPMT ($10.15) is trading above our estimate of fair value ($4.67)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Granite Point Mortgage Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


35.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPMT's forecast earnings growth (35.3% per year) is above the savings rate (1.9%).

Earnings vs Market: GPMT's earnings (35.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: GPMT's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GPMT's revenue (6.1% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: GPMT's revenue (6.1% 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 (5.8%).


Discover growth companies

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-6.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GPMT has a large one-off loss of $27.7M impacting its June 30 2022 financial results.

Growing Profit Margin: GPMT's current net profit margins (11%) are lower than last year (30%).


Past Earnings Growth Analysis

Earnings Trend: GPMT's earnings have declined by 6.4% per year over the past 5 years.

Accelerating Growth: GPMT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GPMT had negative earnings growth (-77.8%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-1.6%).


Return on Equity

High ROE: GPMT's Return on Equity (1.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Granite Point Mortgage Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GPMT's short term assets ($4.1B) exceed its short term liabilities ($60.6M).

Long Term Liabilities: GPMT's short term assets ($4.1B) exceed its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: GPMT's net debt to equity ratio (274.2%) is considered high.

Reducing Debt: GPMT's debt to equity ratio has increased from 148.2% to 288.5% over the past 5 years.

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

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


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


9.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GPMT's dividend (9.85%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: GPMT's dividend (9.85%) is in the top 25% of dividend payers in the US market (3.95%)


Stability and Growth of Payments

Stable Dividend: GPMT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GPMT has only been paying a dividend for 5 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (598.5%), GPMT's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (100%), GPMT's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Jack Taylor (66 yo)

5.33yrs

Tenure

US$4,727,154

Compensation

Mr. John A. Taylor, also known as Jack, J.D., is Chief Executive Officer of Granite Point Mortgage Trust Inc. since April 7, 2017 and is its President. Mr. Taylor is a Chief Investment Officer at Pine Rive...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD4.73M) is above average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Jack's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: GPMT's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: GPMT's board of directors are considered experienced (5.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Granite Point Mortgage Trust Inc.'s 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
  • Implied Market Cap: US$531.363m
  • Shares outstanding: 52.35m
  • Website: https://www.gpmtreit.com

Number of Employees


Location

  • Granite Point Mortgage Trust Inc.
  • 3 Bryant Park
  • 24th Floor, Suite 2400A
  • New York
  • New York
  • 10036
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.