NYSE:LADR

Stock Analysis Report

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Executive Summary

Ladder Capital Corp operates as a real estate investment trust in the United States. More Details


Snowflake Analysis

Very undervalued with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LADR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

LADR

-1.5%

US Mortgage REITs

-0.8%

US Market


1 Year Return

-59.1%

LADR

-37.7%

US Mortgage REITs

18.0%

US Market

Return vs Industry: LADR underperformed the US Mortgage REITs industry which returned -37.7% over the past year.

Return vs Market: LADR underperformed the US Market which returned 18% over the past year.


Shareholder returns

LADRIndustryMarket
7 Day-1.8%-1.5%-0.8%
30 Day6.7%2.0%6.8%
90 Day-4.5%3.8%8.9%
1 Year-55.4%-59.1%-30.8%-37.7%20.7%18.0%
3 Year-32.8%-48.3%-18.8%-41.6%41.5%32.1%
5 Year-16.2%-50.8%18.7%-31.5%84.6%63.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LADR ($7.01) is trading below our estimate of fair value ($14.55)

Significantly Below Fair Value: LADR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LADR is good value based on its PE Ratio (15.4x) compared to the US Mortgage REITs industry average (18.8x).

PE vs Market: LADR is good value based on its PE Ratio (15.4x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: LADR is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Ladder Capital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

55.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LADR's forecast earnings growth (55.2% per year) is above the savings rate (2.2%).

Earnings vs Market: LADR's earnings (55.2% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: LADR's revenue (21.3% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: LADR's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LADR's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Ladder Capital performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LADR has a large one-off gain of $20.9M impacting its June 30 2020 financial results.

Growing Profit Margin: LADR's current net profit margins (26.6%) are lower than last year (42.6%).


Past Earnings Growth Analysis

Earnings Trend: LADR's earnings have grown by 15.5% per year over the past 5 years.

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

Earnings vs Industry: LADR had negative earnings growth (-66.6%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-36.7%).


Return on Equity

High ROE: LADR's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Ladder Capital's financial position?


Financial Position Analysis

Short Term Liabilities: LADR's short term assets ($3.9B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: LADR's short term assets ($3.9B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: LADR's debt to equity ratio (328.4%) is considered high.

Reducing Debt: LADR's debt to equity ratio has increased from 271.5% to 328.4% over the past 5 years.

Debt Coverage: LADR's debt is not well covered by operating cash flow (1.9%).

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


Balance Sheet


Next Steps

Dividend

What is Ladder Capital current dividend yield, its reliability and sustainability?

19.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LADR's dividend (19.4%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: LADR's dividend (19.4%) is in the top 25% of dividend payers in the US market (4.57%)


Stability and Growth of Payments

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

Growing Dividend: LADR's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (268.4%), LADR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LADR's dividends in 3 years are not forecast to be well covered by earnings (97.3% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Brian Harris (60 yo)

12yrs

Tenure

US$16,708,186

Compensation

Mr. Brian Richard Harris serves as the Chief Executive Officer of Ladder Capital Finance LLC. Mr. Harris has been the Chief Executive Officer of Ladder Capital Securities LLC since October 2009. Mr. Harris ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD16.71M) is above average for companies of similar size in the US market ($USD2.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brian Harris
Founder12yrsUS$16.71m5.65%
$ 46.6m
Pamela McCormack
Co-Founder1.33yrsUS$5.19m0.74%
$ 6.1m
Robert Perelman
Co-Founder & Head of Asset Management12yrsUS$1.35m0.22%
$ 1.8m
Marc Fox
CFO and Head of Merchant Banking & Capital Markets11.92yrsUS$2.17m0.31%
$ 2.6m
Kelly Porcella
Chief Administrative Officer1.5yrsUS$1.29m0.055%
$ 458.2k
Kevin Moclair
Chief Accounting Officerno datano data0.015%
$ 126.6k
Michelle Wallach
Chief Compliance Officer & Senior Regulatory Counselno datano datano data
Lee Warshaw
Managing Directorno datano datano data
Marc Waldman
Managing Director3.67yrsno datano data
Ryan Jantzen
Co-Head of Origination3.5yrsno datano data
Adam Siper
Co-Head of Origination3.5yrsno datano data
Walker Brown
Managing Director3.33yrsno datano data

3.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: LADR's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Harris
Founder12yrsUS$16.71m5.65%
$ 46.6m
Pamela McCormack
Co-Founder1.33yrsUS$5.19m0.74%
$ 6.1m
Alan Fishman
Independent Non-Executive Chairman of the Board7.42yrsUS$375.00k1.05%
$ 8.7m
Douglas Durst
Independent Director6.75yrsUS$200.00k3.1%
$ 25.6m
Jeffrey Steiner
Independent Director2.25yrsUS$175.00k0.011%
$ 94.5k
David Weiner
Independent Director1.33yrsUS$132.23k0.0075%
$ 61.5k
Mark Alexander
Independent Director5.33yrsUS$190.00k0.076%
$ 624.6k

5.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: LADR's board of directors are considered experienced (5.3 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

Ladder Capital Corp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ladder Capital Corp
  • Ticker: LADR
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$825.913m
  • Market Cap: US$806.260m
  • Shares outstanding: 120.40m
  • Website: https://www.laddercapital.com

Number of Employees


Location

  • Ladder Capital Corp
  • 345 Park Avenue
  • 8th Floor
  • New York
  • New York
  • 10154
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LADRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 2014
LD1ADB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2014
0JSZLSE (London Stock Exchange)YesClass A Common StockGBUSDFeb 2014

Biography

Ladder Capital Corp operates as a real estate investment trust in the United States. The company operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 01:01
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.