MFA Financial
Market Cap
US$3.6b
Last Updated
2020/02/16 23:47 UTC
Data Sources
Company Financials +
Executive Summary
MFA Financial, Inc., through its subsidiaries, operates as a real estate investment trust (REIT) in the United States.
Rewards
Risk Analysis
Dividend of 10.15% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Good value second-rate dividend payer.
Similar Companies
Share Price & News
How has MFA Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MFA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.9%
MFA
1.6%
US Mortgage REITs
1.8%
US Market
1 Year Return
6.5%
MFA
7.2%
US Mortgage REITs
20.1%
US Market
Return vs Industry: MFA matched the US Mortgage REITs industry which returned 7.2% over the past year.
Return vs Market: MFA underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| MFA | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 1.6% | 1.8% |
| 30 Day | 0% | 4.1% | 1.4% |
| 90 Day | 2.5% | 9.3% | 8.8% |
| 1 Year | 18.6%6.5% | 19.0%7.2% | 22.7%20.1% |
| 3 Year | 35.2%-1.3% | 46.1%5.6% | 50.1%40.4% |
| 5 Year | 67.7%-1.4% | 75.0%0.5% | 72.9%53.9% |
Price Volatility Vs. Market
How volatile is MFA Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Our Take On MFA Financial, Inc.'s (NYSE:MFA) CEO Salary1 month ago | Simply Wall St
Investors Who Bought MFA Financial (NYSE:MFA) Shares A Year Ago Are Now Up 18%Valuation
Is MFA Financial undervalued compared to its fair value and its price relative to the market?
49.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MFA ($7.88) is trading below our estimate of fair value ($15.48)
Significantly Below Fair Value: MFA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MFA is good value based on its PE Ratio (11x) compared to the Mortgage REITs industry average (13.1x).
PE vs Market: MFA is good value based on its PE Ratio (11x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: MFA is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: MFA is overvalued based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (1x).
Next Steps
Future Growth
How is MFA Financial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
3.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MFA's forecast earnings growth (3.9% per year) is above the savings rate (1.7%).
Earnings vs Market: MFA's earnings (3.9% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: MFA's earnings are forecast to grow, but not significantly.
Revenue vs Market: MFA's revenue (0.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MFA's revenue (0.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MFA's Return on Equity is forecast to be low in 3 years time (11.1%).
Next Steps
Past Performance
How has MFA Financial performed over the past 5 years?
0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MFA has high quality earnings.
Growing Profit Margin: MFA's current net profit margins (72.9%) are lower than last year (79.1%).
Past Earnings Growth Analysis
Earnings Trend: MFA's earnings have grown by 0.7% per year over the past 5 years.
Accelerating Growth: MFA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MFA had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Mortgage REITs industry average (7.3%).
Return on Equity
High ROE: MFA's Return on Equity (9.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is MFA Financial'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: MFA has a low level of unsold assets or inventory.
Debt Coverage by Assets: MFA's debt is not covered by short term assets (assets are 0.7x debt).
Financial Institutions Analysis
Asset Level: MFA's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if MFA has a sufficient allowance for bad loans.
Low Risk Liabilities: MFA reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if MFA has an acceptable proportion of non-loan assets held.
Low Risk Deposits: MFA has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if MFA has an appropriate level of bad loans.
Next Steps
Dividend
What is MFA Financial's current dividend yield, its reliability and sustainability?
10.15%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MFA's dividend (10.15%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: MFA's dividend (10.15%) is in the top 25% of dividend payers in the US market (3.69%)
Stability and Growth of Payments
Stable Dividend: MFA's dividends per share have been stable in the past 10 years.
Growing Dividend: MFA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (112.1%), MFA's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MFA's dividends in 3 years are not forecast to be well covered by earnings (99% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Craig Knutson (60yo)
2.6yrs
Tenure
US$5,225,637
Compensation
Mr. Craig L. Knutson has been the Chief Executive Officer and President of MFA Financial, Inc. since July 2017 and January 1, 2014 respectively. Mr. Knutson served as Co-Chief Executive Officer of MFA Fina ...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD5.23M) is about average for companies of similar size in the US market ($USD4.88M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.6yrs | US$5.23m | 0.28% $9.8m | |
| Chief Financial Officer | 9.4yrs | US$1.02m | 0.030% $1.1m | |
| Senior VP & Co-Chief Investment Officer | 1.1yrs | US$2.12m | 0.072% $2.6m | |
| Senior VP & Co-Chief Investment Officer | 1.1yrs | US$2.12m | 0.034% $1.2m | |
| Senior Vice President | 0yrs | US$1.36m | 0.078% $2.8m | |
| Senior VP & Chief Accounting Officer | 8.3yrs | no data | 0.033% $1.2m | |
| Senior VP & CTO | 2.9yrs | no data | no data | |
| Executive Vice President | 0yrs | US$1.20m | 0.14% $5.0m | |
| Senior VP | 0yrs | no data | 0.024% $865.1k | |
| Senior VP & Director of Tax | 0yrs | no data | 0.019% $660.4k |
2.8yrs
Average Tenure
53yo
Average Age
Experienced Management: MFA's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.6yrs | US$5.23m | 0.28% $9.8m | |
| Independent Director | 18.1yrs | US$280.00k | 0.014% $496.3k | |
| Director | 0.08yrs | no data | no data | |
| Non-Executive Chairman of the Board | 6.1yrs | US$380.00k | 0.023% $825.6k | |
| Independent Director | 10.1yrs | US$300.00k | 0.018% $655.4k | |
| Independent Director | 16.1yrs | US$270.00k | 0.021% $747.2k | |
| Independent Director | 5.6yrs | US$290.00k | 0.0025% $90.1k | |
| Director | 0.8yrs | no data | no data |
5.8yrs
Average Tenure
62.5yo
Average Age
Experienced Board: MFA's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MFA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11%.
Top Shareholders
Company Information
MFA Financial, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: MFA Financial, Inc.
- Ticker: MFA
- Exchange: NYSE
- Founded: 1997
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$3.560b
- Shares outstanding: 451.77m
- Website: https://www.mfafinancial.com
Number of Employees
Location
- MFA Financial, Inc.
- 350 Park Avenue
- 20th Floor
- New York
- New York
- 10022
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MFA | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 1998 |
| M4Z | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1998 |
| MFA.PRB | NYSE (New York Stock Exchange) | PFD SER B | US | USD | Apr 2013 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:47 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.