NYSE:MFA

Stock Analysis Report

Executive Summary

MFA Financial, Inc., through its subsidiaries, operates as a real estate investment trust (REIT) in the United States.


Snowflake Analysis

Very undervalued with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

153.3%

MFA

31.0%

US Mortgage REITs

7.2%

US Market


1 Year Return

-79.2%

MFA

-52.4%

US Mortgage REITs

-10.4%

US Market

Return vs Industry: MFA underperformed the US Mortgage REITs industry which returned -52.4% over the past year.

Return vs Market: MFA underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

MFAIndustryMarket
7 Day153.3%31.0%7.2%
30 Day-79.0%-49.0%-12.6%
90 Day-80.1%-52.1%-19.4%
1 Year-74.8%-79.2%-46.8%-52.4%-8.5%-10.4%
3 Year-72.1%-81.3%-35.9%-53.9%15.8%8.3%
5 Year-64.2%-80.7%-21.7%-55.0%35.8%21.0%

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

Valuation

Is MFA Financial 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: MFA ($1.52) is trading below our estimate of fair value ($14.96)

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 (1.9x) compared to the Mortgage REITs industry average (4.7x).

PE vs Market: MFA is good value based on its PE Ratio (1.9x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: MFA is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: MFA is good value based on its PB Ratio (0.2x) compared to the US Mortgage REITs industry average (0.5x).


Next Steps

Future Growth

How is MFA Financial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFA's forecast earnings growth (4.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MFA's earnings (4.2% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: MFA's revenue is expected to decline over the next 3 years (-14% per year).

High Growth Revenue: MFA's revenue is forecast to decline over the next 3 years (-14% 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 (10.8%).


Next Steps

Past Performance

How has MFA Financial performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFA has high quality earnings.

Growing Profit Margin: MFA's current net profit margins (77.4%) are higher than last year (76.5%).


Past Earnings Growth Analysis

Earnings Trend: MFA's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: MFA's earnings growth over the past year (26.6%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: MFA earnings growth over the past year (26.6%) exceeded the Mortgage REITs industry 18.1%.


Return on Equity

High ROE: MFA's Return on Equity (11.2%) is considered low.


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 0.8x 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?

52.96%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MFA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MFA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MFA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MFA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MFA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MFA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


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)

2.67s

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 ($USD5.23M) is above average for companies of similar size in the US market ($USD3.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Knutson
President2.67yrsUS$5.23m0.27% $1.9m
Stephen Yarad
Chief Financial Officer9.42yrsUS$1.02m0.029% $203.0k
Gudmundur Kristjansson
Senior VP & Co-Chief Investment Officer1.17yrsUS$2.12m0.072% $492.8k
Bryan Wulfsohn
Senior VP & Co-Chief Investment Officer1.17yrsUS$2.12m0.033% $230.0k
Sunil Yadav
Senior Vice Presidentno dataUS$1.36m0.077% $533.1k
Kathleen Hanrahan
Senior VP & Chief Accounting Officer8.42yrsno data0.033% $227.4k
John Elliott
Senior VP & CTO3yrsno datano data
Ronald Freydberg
Executive Vice Presidentno dataUS$1.20m0.14% $978.0k
Harold Schwartz
Senior VPno datano data0.024% $166.9k
Terence Meyers
Senior VP & Director of Taxno datano data0.018% $127.4k

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: MFA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Knutson
President2.67yrsUS$5.23m0.27% $1.9m
Stephen Blank
Independent Director18.17yrsUS$280.00k0.014% $95.7k
Lisa Polsky
Director0.17yrno datano data
George Krauss
Non-Executive Chairman of the Board6.17yrsUS$380.00k0.023% $159.2k
Robin Josephs
Independent Director10.17yrsUS$300.00k0.018% $126.5k
James Brodsky
Independent Director16.17yrsUS$270.00k0.021% $144.2k
Laurie Goodman
Independent Director5.67yrsUS$290.00k0.0025% $17.4k
Francis Oelerich
Director0.83yrno datano data

5.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MFA's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MFA insiders have bought more shares than they have sold 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 7.6%.


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$688.734m
  • Shares outstanding: 453.11m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFANYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1998
M4ZDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1998
MFA.PRBNYSE (New York Stock Exchange)PFD SER BUSUSDApr 2013
MFA.PRCNYSE (New York Stock Exchange)6.50 PFD SER CUSUSDFeb 2020
MFAB.OOTCPK (Pink Sheets LLC)6.50 PFD SER CUSUSDFeb 2020

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, and credit risk transfer securities; residential whole loans, including purchased performing loans, purchased credit impaired, and non-performing loans; and mortgage servicing rights related assets. The company has elected to be taxed as a REIT and would not be subject to federal 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:00
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.