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MFA Financial

NYSE:MFA
Snowflake Description

Second-rate dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MFA
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

MFA Financial, Inc., through its subsidiaries, operates as a real estate investment trust (REIT) in the United States. The last earnings update was 78 days ago. More info.


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MFA Share Price and Events
7 Day Returns
0.3%
NYSE:MFA
0.2%
US Mortgage REITs
-0.9%
US Market
1 Year Returns
-6.9%
NYSE:MFA
-6%
US Mortgage REITs
3.8%
US Market
MFA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MFA Financial (MFA) 0.3% 0.6% -2% -6.9% -2.7% -11.6%
US Mortgage REITs 0.2% 1.1% -3.3% -6% -0.1% -11.3%
US Market -0.9% 1.1% 1.1% 3.8% 35.5% 42.1%
1 Year Return vs Industry and Market
  • MFA matched the Mortgage REITs industry (-6%) over the past year.
  • MFA underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
MFA
Industry
5yr Volatility vs Market

MFA Value

 Is MFA Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MFA Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MFA Financial.

NYSE:MFA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $6.94 * 9.7%
$0.67
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $6.94
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MFA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.26
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.265 (1 + (1- 21%) (283.27%))
0.904
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.904 * 5.96%)
8.12%

Discounted Cash Flow Calculation for NYSE:MFA using Excess Returns Model Model

The calculations below outline how an intrinsic value for MFA Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:MFA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.7% – 8.12%) * $6.94)
$0.11
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.11 / (8.12% - 2.73%)
$1.99
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $6.94 + $1.99
$8.93
NYSE:MFA Discount to Share Price
Calculation Result
Value per share (USD) From above. $8.93
Current discount Discount to share price of $7.27
= -1 x ($7.27 - $8.93) / $8.93
18.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MFA Financial is available for.
Intrinsic value
19%
Share price is $7.27 vs Future cash flow value of $8.93
Current Discount Checks
For MFA Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MFA Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • MFA Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MFA Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MFA Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MFA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.67
NYSE:MFA Share Price ** NYSE (2019-07-23) in USD $7.27
United States of America Mortgage REITs Industry PE Ratio Median Figure of 23 Publicly-Listed Mortgage REITs Companies 12.75x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MFA Financial.

NYSE:MFA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MFA Share Price ÷ EPS (both in USD)

= 7.27 ÷ 0.67

10.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MFA Financial is good value based on earnings compared to the US Mortgage REITs industry average.
  • MFA Financial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does MFA Financial's expected growth come at a high price?
Raw Data
NYSE:MFA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
9.6%per year
United States of America Mortgage REITs Industry PEG Ratio Median Figure of 21 Publicly-Listed Mortgage REITs Companies 1.13x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NYSE:MFA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.81x ÷ 9.6%

1.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MFA Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MFA Financial's assets?
Raw Data
NYSE:MFA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.56
NYSE:MFA Share Price * NYSE (2019-07-23) in USD $7.27
United States of America Mortgage REITs Industry PB Ratio Median Figure of 37 Publicly-Listed Mortgage REITs Companies 0.96x
United States of America Market PB Ratio Median Figure of 5,249 Publicly-Listed Companies 1.78x
NYSE:MFA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MFA Share Price ÷ Book Value per Share (both in USD)

= 7.27 ÷ 7.56

0.96x

* Primary Listing of MFA Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MFA Financial is overvalued based on assets compared to the US Mortgage REITs industry average.
X
Value checks
We assess MFA Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. MFA Financial has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MFA Future Performance

 How is MFA Financial expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MFA Financial expected to grow at an attractive rate?
  • MFA Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MFA Financial's earnings growth is positive but not above the United States of America market average.
  • MFA Financial's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MFA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MFA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 9.6%
NYSE:MFA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -16.3%
United States of America Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 40%
United States of America Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 26.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MFA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MFA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 281 357 2
2019-12-31 273 342 2
NYSE:MFA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 402 179 290
2018-12-31 389 148 285
2018-09-30 423 145 325
2018-06-30 401 122 302
2018-03-31 406 138 311
2017-12-31 401 177 306
2017-09-30 368 198 278
2017-06-30 378 237 297
2017-03-31 371 180 296
2016-12-31 377 179 296
2016-09-30 370 222 297
2016-06-30 365 193 293

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MFA Financial's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • MFA Financial's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MFA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from MFA Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MFA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.65 0.65 0.65 1.00
2020-12-31 0.75 0.81 0.62 4.00
2019-12-31 0.73 0.76 0.65 4.00
NYSE:MFA Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.67
2018-12-31 0.68
2018-09-30 0.80
2018-06-30 0.76
2018-03-31 0.79
2017-12-31 0.79
2017-09-30 0.73
2017-06-30 0.79
2017-03-31 0.80
2016-12-31 0.80
2016-09-30 0.80
2016-06-30 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MFA Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess MFA Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MFA Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MFA Past Performance

  How has MFA Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MFA Financial's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MFA Financial's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • MFA Financial's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MFA Financial's 1-year earnings growth is negative, it can't be compared to the US Mortgage REITs industry average.
Earnings and Revenue History
MFA Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MFA Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MFA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 402.32 290.36 48.70
2018-12-31 389.49 284.94 46.08
2018-09-30 423.08 324.94 42.64
2018-06-30 401.33 301.68 46.59
2018-03-31 406.08 311.23 47.30
2017-12-31 400.84 305.69 48.73
2017-09-30 368.31 277.76 51.92
2017-06-30 378.29 296.94 47.73
2017-03-31 371.04 295.99 46.31
2016-12-31 376.95 296.04 45.61
2016-09-30 370.10 296.89 44.63
2016-06-30 365.21 293.44 43.86
2016-03-31 363.20 292.58 43.17
2015-12-31 365.58 296.69 42.05
2015-09-30 370.43 303.02 41.84
2015-06-30 367.34 302.50 41.62
2015-03-31 366.54 303.27 40.48
2014-12-31 358.79 297.40 40.25
2014-09-30 352.83 296.31 37.50
2014-06-30 345.63 288.81 36.43
2014-03-31 341.53 281.10 35.21
2013-12-31 340.68 283.93 33.69
2013-09-30 339.07 276.16 34.16
2013-06-30 343.77 284.55 34.09
2013-03-31 340.58 289.90 33.61
2012-12-31 347.91 297.16 33.57
2012-09-30 340.02 298.37 32.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MFA Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MFA Financial used its assets more efficiently than the US Mortgage REITs industry average last year based on Return on Assets.
  • Unable to establish if MFA Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess MFA Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MFA Financial has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MFA Health

 How is MFA Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MFA Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MFA Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • MFA Financial's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MFA Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MFA Financial Company Filings, last reported 3 months ago.

NYSE:MFA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,404.53 9,265.72 76.58
2018-12-31 3,416.10 8,660.32 51.97
2018-09-30 3,552.24 8,089.28 126.50
2018-06-30 3,206.61 6,507.68 66.06
2018-03-31 3,235.43 7,006.92 216.06
2017-12-31 3,261.64 7,075.42 449.76
2017-09-30 3,257.65 7,225.93 608.17
2017-06-30 3,274.64 7,621.90 745.48
2017-03-31 3,055.95 8,233.85 421.69
2016-12-31 3,033.90 8,830.96 260.35
2016-09-30 3,033.44 8,903.80 288.82
2016-06-30 2,947.67 9,266.77 182.77
2016-03-31 2,861.65 9,371.07 146.39
2015-12-31 2,967.26 9,576.71 166.13
2015-09-30 3,051.78 9,713.52 174.18
2015-06-30 3,145.67 9,862.78 219.34
2015-03-31 3,208.17 10,093.35 169.77
2014-12-31 3,203.27 8,540.16 583.91
2014-09-30 3,253.74 8,417.49 618.89
2014-06-30 3,275.29 8,755.58 453.33
2014-03-31 3,204.59 9,031.41 339.98
2013-12-31 3,142.25 8,833.72 606.55
2013-09-30 3,073.53 9,153.12 532.42
2013-06-30 3,164.50 9,492.14 465.94
2013-03-31 3,265.55 9,595.68 614.47
2012-12-31 3,311.01 9,562.32 414.20
2012-09-30 3,239.15 9,759.97 463.21
  • MFA Financial's level of debt (272.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (281.7% vs 272.2% today).
  • Debt is not well covered by operating cash flow (1.9%, less than 20% of total debt).
  • Unable to confirm if the interest payments on MFA Financial's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess MFA Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MFA Financial has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MFA Dividends

 What is MFA Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
11%
Current annual income from MFA Financial dividends. Estimated to be 11% next year.
If you bought $2,000 of MFA Financial shares you are expected to receive $220 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MFA Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • MFA Financial's dividend is above the markets top 25% of dividend payers in United States of America (3.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MFA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 10.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MFA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.80 1.00
2020-12-31 0.80 4.00
2019-12-31 0.80 4.00
NYSE:MFA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-12 0.800 11.088
2019-03-06 0.800 10.950
2018-12-12 0.800 11.235
2018-09-13 0.800 11.165
2018-06-07 0.800 10.327
2018-03-07 0.800 10.554
2017-12-13 0.800 10.659
2017-09-14 0.800 9.573
2017-06-12 0.800 9.272
2017-03-08 0.800 9.813
2016-12-14 0.800 10.129
2016-09-15 0.800 10.709
2016-06-14 0.800 10.670
2016-03-11 0.800 11.505
2015-12-09 0.800 12.230
2015-09-17 0.800 11.473
2015-06-15 0.800 10.767
2015-03-13 0.800 10.143
2014-12-09 0.800 10.049
2014-02-13 0.860 10.595
2012-12-12 0.880 10.933
2011-12-14 0.985 12.796
2010-12-16 0.890 11.722
2010-02-11 0.990 13.250
2009-12-16 1.080 14.662
2009-10-01 1.000 13.255
2009-07-01 1.000 13.324
2009-04-01 0.880 14.140
2009-02-13 0.810 14.344
2008-12-11 0.840 14.457
2008-10-01 0.880 16.424
2008-07-30 0.720 11.292

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of MFA Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.9x coverage).
X
Income/ dividend checks
We assess MFA Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MFA Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MFA Financial has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MFA Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Craig Knutson
COMPENSATION $5,225,637
AGE 60
TENURE AS CEO 2 years
CEO Bio

Mr. Craig L. Knutson has been the Chief Executive Officer and President of MFA Financial, Inc. since July 2017 and January 1, 2014 respectively. Mr. Knutson served as Co-Chief Executive Officer of MFA Financial, Inc. from July 31, 2017 to August 17, 2017 and as its Chief Operating Officer from January 1, 2014 to August 17, 2017. Mr. Knutson had been the Chief Investment Officer of CBA Commercial, LLC since May 2005. Mr. Knutson served as an Executive Vice President of MFA Financial, Inc. since July 1, 2009 until 2013. He served as a Senior Vice President of Investments at MFA Financial, Inc. since June 2008. He served as a Senior Executive Vice President of CBA Commercial, LLC from 2004 to 2007. He served as a Senior Vice President of Risk Management at MFA Financial, Inc. since June 2008. He joined CBA Commercial in August 2004 and served as its Executive Vice President, responsible for strategic planning as well as developing and implementing the information technology platform for CBA Commercial. He served as the President and Chief Operating Officer of Ariasys Inc., from 2001 to August 2004. Mr. Knutson managed all client projects and held additional responsibilities including client relationships, business development, sales, marketing, human resources, finance and legal. Initially he served as a Consultant at Ariasys Inc. during its conceptual phase and later was an equity partner in it. Mr. Knutson spent two years at Morgan Stanley & Co. and served as a Vice President in the Mortgage Trading Department and at Smith Barney as a Vice President in the Mortgage Trading Department for one year. From 1986 to 1999, Mr. Knutson served as a Vice President of CS First Boston in the Mortgage Trading Department, where his responsibilities included securitized mortgage product as well as whole loan trading. From 1981 to 1984, Mr. Knutson served as an Analyst and then Associate in the Investment Banking Department of E.F. Hutton & Company Inc. He has a combination of technology experience as well as mortgage, asset-backed, trading, structuring, investment banking and capital markets background. From May 1996 to May 1999, Mr. Knutson served as a Director at Credit Suisse First Boston, where he developed and managed the subprime residential whole loan business. Directing a joint venture with the Asset Finance Department, Mr. Knutson was responsible for the first securitization of subprime whole loans at Credit Suisse First Boston. He designed and implemented valuation techniques, negotiated and executed trades with originators, negotiated and oversaw legal documentation and directed the securitization process including cash flow/security structuring, hedging, marketing and sales. Mr. Knutson holds an MBA in Finance from Harvard Business School in 1986 and an AB in Economics and French from Hamilton College in 1981.

CEO Compensation
  • Craig's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Craig's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MFA Financial management team in years:

2.2
Average Tenure
53
Average Age
  • The tenure for the MFA Financial management team is about average.
Management Team

Craig Knutson

TITLE
President
COMPENSATION
$5M
AGE
60
TENURE
2 yrs

Stephen Yarad

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
49
TENURE
8.8 yrs

Gudmundur Kristjansson

TITLE
Senior VP & Co-Chief Investment Officer
COMPENSATION
$2M
AGE
39
TENURE
0.5 yrs

Bryan Wulfsohn

TITLE
Senior VP & Co-Chief Investment Officer
COMPENSATION
$2M
AGE
35
TENURE
0.5 yrs

Sunil Yadav

TITLE
Senior Vice President
COMPENSATION
$1M
AGE
49

Kathleen Hanrahan

TITLE
Senior VP & Chief Accounting Officer
AGE
53
TENURE
7.8 yrs

John Elliott

TITLE
Senior VP & CTO
TENURE
2.3 yrs

Ron Freydberg

TITLE
Executive Vice President
COMPENSATION
$1M
AGE
59

Harold Schwartz

TITLE
Senior VP
AGE
54

Terence Meyers

TITLE
Senior VP & Director of Tax
AGE
64
Board of Directors Tenure

Average tenure and age of the MFA Financial board of directors in years:

5.4
Average Tenure
61.5
Average Age
  • The tenure for the MFA Financial board of directors is about average.
Board of Directors

George Krauss

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$380K
AGE
77
TENURE
5.5 yrs

Craig Knutson

TITLE
President
COMPENSATION
$5M
AGE
60
TENURE
1.9 yrs

Robin Josephs

TITLE
Director
COMPENSATION
$300K
AGE
59
TENURE
9.5 yrs

Laurie Goodman

TITLE
Director
COMPENSATION
$290K
AGE
63
TENURE
5 yrs

Steve Blank

TITLE
Director
COMPENSATION
$280K
AGE
73
TENURE
17.5 yrs

Jim Brodsky

TITLE
Director
COMPENSATION
$270K
AGE
74
TENURE
15.5 yrs

Rich Byrne

TITLE
Director
COMPENSATION
$270K
AGE
58
TENURE
5.3 yrs

Frank Oelerich

TITLE
Director
AGE
58
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Nov 18 Buy Robin Josephs Individual 08. Nov 18 08. Nov 18 14,000 $7.10 $99,400
X
Management checks
We assess MFA Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MFA Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MFA News

Simply Wall St News

What Kind Of Shareholder Owns Most MFA Financial, Inc. (NYSE:MFA) Stock?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … Check out our latest analysis for MFA Financial NYSE:MFA Ownership Summary, July 5th 2019 What Does The Institutional Ownership Tell Us About MFA Financial? … We can see that MFA Financial does have institutional investors; and they hold 85% of the stock.

Simply Wall St -

Have Insiders Been Buying MFA Financial, Inc. (NYSE:MFA) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in MFA Financial, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … MFA Financial Insider Transactions Over The Last Year.

Simply Wall St -

Have Insiders Been Buying MFA Financial, Inc. (NYSE:MFA) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in MFA Financial, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Happily, we note that in the last year insiders bought 24.18k shares for a total of US$174k

Simply Wall St -

Where MFA Financial Inc (NYSE:MFA) Stands In Terms Of Earnings Growth Against Its Industry

After reading MFA Financial Inc's (NYSE:MFA) most recent earnings announcement (31 March 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … How MFA fared against its long-term earnings performance and its industry … MFA's trailing twelve-month earnings (from 31 March 2018) of US$311.00m has

Simply Wall St -

Was MFA Financial Inc's (NYSE:MFA) Earnings Growth Better Than The Industry's?

View our latest analysis for MFA Financial Were MFA's earnings stronger than its past performances and the industry? … I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … Given that these figures are relatively nearsighted, I have created an annualized five-year value for MFA's earnings, which stands at US$293.68M This means generally, MFA Financial has been able to consistently grow its net income over the past few years as well.

Simply Wall St -

When Should You Buy MFA Financial Inc (NYSE:MFA)?

A question to answer is whether MFA Financial's current trading price of $7.12 reflective of the actual value of the mid-cap? … It’s trading around 13.79% below my intrinsic value, which means if you buy MFA Financial today, you’d be paying a reasonable price for it. … It seems like the market has already priced in MFA’s future outlook, with shares trading around its fair value.

Simply Wall St -

Only 3 Days Left To MFA Financial Inc (NYSE:MFA)’s Ex-Dividend Date, Should You Buy?

Have you been keeping an eye on MFA Financial Inc's (NYSE:MFA) upcoming dividend of $0.2 per share payable on the 31 January 2018? … Check out our latest analysis for MFA Financial Here's how I find good dividend stocks When researching a dividend stock, I always follow the following screening criteria: Is it paying an annual yield above 75% of dividend payers? … Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout.

Simply Wall St -

MFA Company Info

Description

MFA Financial, Inc., through its subsidiaries, operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage assets, including non-agency mortgage-backed securities (MBS), agency MBS, residential whole loans, credit risk transfer securities, and mortgage servicing rights related assets. Its MBS are secured by hybrid, adjustable-rate, 15-year fixed-rate, and 30-year and longer-term fixed-rate mortgages, as well as mortgages that have interest rates that reset annually or more frequently. The company has elected to be taxed as a REIT and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. MFA Financial, Inc. was incorporated in 1997 and is headquartered in New York, New York.

Details
Name: MFA Financial, Inc.
MFA
Exchange: NYSE
Founded: 1997
$3,271,033,438
450,555,570
Website: http://www.mfafinancial.com
Address: MFA Financial, Inc.
350 Park Avenue,
20th Floor,
New York,
New York, 10022,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MFA Common Stock New York Stock Exchange US USD 13. Apr 1998
DB M4Z Common Stock Deutsche Boerse AG DE EUR 13. Apr 1998
NYSE MFA.PRB PFD SER B New York Stock Exchange US USD 10. Apr 2013
Number of employees
Current staff
Staff numbers
60
MFA Financial employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/24 01:10
End of day share price update: 2019/07/23 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.