NYSE:MFA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential and overvalued.


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

-3.1%

MFA

-0.8%

US Mortgage REITs

2.3%

US Market


1 Year Return

-65.7%

MFA

-43.1%

US Mortgage REITs

6.7%

US Market

Return vs Industry: MFA underperformed the US Mortgage REITs industry which returned -43.1% over the past year.

Return vs Market: MFA underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

MFAIndustryMarket
7 Day-3.1%-0.8%2.3%
30 Day-5.0%-7.5%6.0%
90 Day35.5%9.5%18.9%
1 Year-59.5%-65.7%-36.4%-43.1%9.0%6.7%
3 Year-57.5%-70.9%-26.1%-47.2%36.6%27.7%
5 Year-41.1%-67.5%-0.06%-43.0%64.2%46.1%

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?

0.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MFA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MFA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MFA is unprofitable, so we can't compare its PE Ratio to the US Mortgage REITs industry average.

PE vs Market: MFA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MFA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MFA is good value based on its PB Ratio (0.5x) compared to the US Mortgage REITs industry average (0.6x).


Next Steps

Future Growth

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

130.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MFA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MFA's is expected to become profitable in the next 3 years.

Revenue vs Market: MFA's revenue (90.1% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: MFA's revenue (90.1% per year) is forecast to grow faster 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 (6.2%).


Next Steps

Past Performance

How has MFA Financial performed over the past 5 years?

-13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFA is currently unprofitable.

Growing Profit Margin: MFA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MFA is unprofitable, and losses have increased over the past 5 years at a rate of -13.8% per year.

Accelerating Growth: Unable to compare MFA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MFA is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-42.8%).


Return on Equity

High ROE: MFA has a negative Return on Equity (-25.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is MFA Financial's financial position?


Financial Position Analysis

Short Term Liabilities: MFA's short term assets ($7.8B) exceed its short term liabilities ($66.6M).

Long Term Liabilities: MFA's short term assets ($7.8B) do not cover its long term liabilities ($8.6B).


Debt to Equity History and Analysis

Debt Level: MFA's debt to equity ratio (353.3%) is considered high.

Reducing Debt: MFA's debt to equity ratio has increased from 314.6% to 353.3% over the past 5 years.

Debt Coverage: MFA's debt is not well covered by operating cash flow (2.2%).

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


Balance Sheet


Next Steps

Dividend

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

10.67%

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 recent payouts.

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

3.2yrs

Average management tenure


CEO

Craig Knutson (61yo)

3yrs

Tenure

US$5,351,445

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 ($USD5.35M) is above average for companies of similar size in the US market ($USD3.17M).

Compensation vs Earnings: Craig's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Knutson
President3yrsUS$5.35m0.27% $3.1m
Stephen Yarad
Chief Financial Officer9.83yrsUS$1.07m0.029% $331.1k
Gudmundur Kristjansson
Senior VP & Co-Chief Investment Officer1.5yrsUS$2.19m0.072% $804.0k
Bryan Wulfsohn
Senior VP & Co-Chief Investment Officer1.5yrsUS$2.19m0.033% $375.3k
Sunil Yadav
Senior Vice Presidentno dataUS$1.26m0.077% $869.8k
Kathleen Hanrahan
Senior VP & Chief Accounting Officer8.75yrsno data0.033% $371.0k
John Elliott
Senior VP & CTO3.33yrsno datano data
Ronald Freydberg
Executive Vice Presidentno dataUS$1.20m0.14% $1.6m
Harold Schwartz
Senior VPno datano data0.024% $272.2k
Terence Meyers
Senior VP & Director of Taxno datano data0.018% $207.8k
Matthew Ottinger
Senior VP & Controllerno datano datano data

3.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: MFA's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Knutson
President3yrsUS$5.35m0.27% $3.1m
Lisa Polsky
Independent Director0.50yrno datano data
George Krauss
Independent Non-Executive Chairman of the Board6.5yrsUS$380.00k0.027% $303.3k
Robin Josephs
Independent Director10.5yrsUS$300.00k0.023% $262.7k
James Brodsky
Independent Director16.5yrsUS$270.00k0.021% $235.1k
Laurie Goodman
Independent Director6yrsUS$290.00k0.0025% $28.3k
Richard Wald
Director0.083yrno datano data
Francis Oelerich
Independent Director1.17yrsUS$229.29k0.0043% $48.9k

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: MFA's board of directors are considered experienced (4.5 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

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$1.124b
  • Shares outstanding: 453.24m
  • 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
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 Analysis2020/07/13 06:54
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.