NYSE:MITT

Stock Analysis Report

Executive Summary

AG Mortgage Investment Trust, Inc., a real estate investment trust, focuses on investing in, acquiring, and managing a portfolio of residential mortgage-backed securities, other real estate-related securities, and financial assets in the United States.

Rewards

Trading at 43.4% below its fair value

Revenue is forecast to grow 18.95% per year

Risk Analysis

Earnings have declined by -12.22% per year over past 5 years

Dividend of 11.52% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (8.8%) are lower than last year (72.7%)

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value unattractive dividend payer.


Similar Companies

Share Price & News

How has AG Mortgage Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.0%

MITT

1.2%

US Mortgage REITs

0.06%

US Market


1 Year Return

-5.7%

MITT

8.4%

US Mortgage REITs

19.3%

US Market

Return vs Industry: MITT underperformed the US Mortgage REITs industry which returned 7.8% over the past year.

Return vs Market: MITT underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

MITTIndustryMarket
7 Day2.0%1.2%0.06%
30 Day5.2%4.6%1.7%
90 Day9.6%10.6%9.0%
1 Year6.2%-5.7%20.3%8.4%21.8%19.3%
3 Year29.2%-7.8%46.1%5.7%49.5%39.9%
5 Year61.7%-11.4%75.2%0.7%73.1%54.1%

Price Volatility Vs. Market

How volatile is AG Mortgage Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AG Mortgage Investment Trust undervalued compared to its fair value and its price relative to the market?

42.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MITT ($16.5) is trading below our estimate of fair value ($29.17)

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


Price To Earnings Ratio

PE vs Industry: MITT is poor value based on its PE Ratio (88.2x) compared to the Mortgage REITs industry average (13.3x).

PE vs Market: MITT is poor value based on its PE Ratio (88.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MITT is good value based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is AG Mortgage Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

19.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MITT's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MITT's earnings are forecast to grow faster than the US market

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

Revenue vs Market: MITT's revenue (19% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MITT's revenue (19% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MITT's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has AG Mortgage Investment Trust performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MITT has high quality earnings.

Growing Profit Margin: MITT's current net profit margins (8.8%) are lower than last year (72.7%).


Past Earnings Growth Analysis

Earnings Trend: MITT's earnings have declined by -12.2% per year over the past 5 years.

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

Earnings vs Industry: MITT had negative earnings growth (-88.5%) over the past year, making it difficult to compare to the Mortgage REITs industry average (7.3%).


Return on Equity

High ROE: MITT's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AG Mortgage Investment Trust'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: MITT has a low level of unsold assets or inventory.

Debt Coverage by Assets: MITT's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: MITT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MITT has a sufficient allowance for bad loans.

Low Risk Liabilities: MITT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MITT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MITT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MITT has an appropriate level of bad loans.


Next Steps

Dividend

What is AG Mortgage Investment Trust's current dividend yield, its reliability and sustainability?

11.40%

Current Dividend Yield


Dividend Yield vs Market

company11.4%marketbottom25%1.4%markettop25%3.7%industryaverage9.2%forecastin3Years10.8%

Current dividend yield vs market & industry

Notable Dividend: MITT's dividend (11.52%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MITT's dividend (11.52%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

Growing Dividend: MITT's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1042.4%), MITT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MITT's dividends in 3 years are not forecast to be well covered by earnings (99.7% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

David Roberts (57yo)

9.1yrs

Tenure

0

Mr. David Nathan Roberts serves as the Head of Strategy and Senior Managing Director at Angelo, Gordon & Co. He joined Angelo Gordon in 1993 and is Head of Strategy and is a Managing Director. Mr. Roberts  ...


Leadership Team

NamePositionTenureCompensationOwnership
David Roberts
Chairman of the Board9.1yrsno data0.92% $5.0m
Brian Sigman
CFO, Treasurer & Director1.8yrsUS$1.26m0.14% $746.9k
Thomas Durkin
Chief Investment Officer & Director1.8yrsno data0.17% $919.1k
Raul Moreno
General Counsel & Secretary4.3yrsUS$415.98k0.012% $67.9k
Andrew Parks
Chief Risk Officer10.5yrsUS$157.32kno data
Alison Halpern
Chief Accounting Officer & Controller0.2yrsno datano data
Karen Werbel
Investor Relations0yrsno datano data

5.3yrs

Average Tenure

39.5yo

Average Age

Experienced Management: MITT's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Roberts
Chairman of the Board9.1yrsno data0.92% $5.0m
Brian Sigman
CFO, Treasurer & Director1.8yrsUS$1.26m0.14% $746.9k
Thomas Durkin
Chief Investment Officer & Director1.8yrsno data0.17% $919.1k
Peter Linneman
Independent Director8.6yrsUS$160.00k0.079% $430.7k
Debra Hess
Independent Director2yrsUS$143.11k0.028% $152.0k
Arthur Ainsberg
Independent Director6.8yrsUS$185.00k0.061% $334.5k
Andrew Berger
Independent Director8.6yrsUS$170.00k0.091% $493.8k
Joseph LaManna
Lead Independent Director0yrsUS$185.00k0.10% $560.4k

6.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: MITT's board of directors are considered experienced (6.8 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 been diluted in the past year, with total shares outstanding growing by 10.4%.


Top Shareholders

Company Information

AG Mortgage Investment Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AG Mortgage Investment Trust, Inc.
  • Ticker: MITT
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$545.486m
  • Shares outstanding: 32.74m
  • Website: https://www.agmit.com

Location

  • AG Mortgage Investment Trust, Inc.
  • 245 Park Avenue
  • 26th Floor
  • New York
  • New York
  • 10167
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MITTNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2011
8AGDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2011
MITT.PRANYSE (New York Stock Exchange)8.25% PFD SER AUSUSDJul 2012
MITT.PRBNYSE (New York Stock Exchange)PFD SER B 8.00%USUSDSep 2012
MITT.PRCNYSE (New York Stock Exchange)8% CUM PFD CUSUSDSep 2019

Biography

AG Mortgage Investment Trust, Inc., a real estate investment trust, focuses on investing in, acquiring, and managing a portfolio of residential mortgage-backed securities, other real estate-related securities, and financial assets in the United States. It operates through two segments, Securities and Loans, and Single-Family Rental Properties. The Securities and Loans segment invests in residential mortgage-backed securities; residential investments, including credit risk transfer securities, mortgage-backed securities collateralized by re-performing mortgage loans and/or non-performing mortgage loans, and new origination loans, as well as re-performing mortgage loans and/or non-performing mortgage loans; commercial investments, such as commercial mortgage-backed securities (CMBS), interest-only securities, and CMBS principal-only securities; and asset backed securities comprising investment grade and non-investment grade debt and equity tranches of securitizations collateralized by various asset classes. The Single-Family Rental Properties segment operates single-family rental properties, as well as provides property management services. Its portfolio includes 1,225 properties located in the Southeast United States. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2011 and is based 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 Analysis2020/02/21 01:30
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.