NYSE:NLY

Stock Analysis Report

Executive Summary

Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Annaly Capital Management's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

NLY

2.1%

US Mortgage REITs

1.0%

US Market


1 Year Return

-9.4%

NLY

-1.2%

US Mortgage REITs

8.0%

US Market

Return vs Industry: NLY underperformed the US Mortgage REITs industry which returned -1.2% over the past year.

Return vs Market: NLY underperformed the US Market which returned 8% over the past year.


Shareholder returns

NLYIndustryMarket
7 Day3.2%2.1%1.0%
30 Day0%0.8%-0.07%
90 Day-6.3%-0.6%-1.0%
1 Year1.7%-9.4%10.0%-1.2%10.4%8.0%
3 Year22.7%-12.0%39.0%0.3%46.2%36.7%
5 Year37.7%-21.6%56.5%-10.1%64.3%46.2%

Price Volatility Vs. Market

How volatile is Annaly Capital Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Annaly Capital Management 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: NLY ($8.95) is trading below our estimate of fair value ($18.2)

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


Price To Earnings Ratio

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

PE vs Market: NLY 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 NLY's PEG Ratio to determine if it is good value.


Price to Book Ratio

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


Next Steps

Future Growth

How is Annaly Capital Management forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

99.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NLY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NLY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NLY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NLY's revenue (59.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NLY's revenue (59.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NLY's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Annaly Capital Management performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NLY is unprofitable, but has reduced losses over the past 5 years at a rate of 4.1% per year.

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

Earnings vs Industry: NLY is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (5.2%).


Return on Equity

High ROE: NLY has a negative Return on Equity (-28.62%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NLY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NLY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Annaly Capital Management'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: NLY has a low level of unsold assets or inventory.

Debt Coverage by Assets: NLY's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Annaly Capital Management's current dividend yield, its reliability and sustainability?

11.17%

Current Dividend Yield


Dividend Yield vs Market

company11.2%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years11.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NLY's dividend (11.17%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: NLY's dividend (11.17%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: NLY's dividend payments have been volatile in the past 10 years.

Growing Dividend: NLY's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NLY is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NLY's dividends in 3 years are forecast to be covered by earnings (87.1% payout ratio).


Next Steps

Management

What is the CEO of Annaly Capital Management's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Kevin Keyes (51yo)

4.1yrs

Tenure

0

Mr. Kevin G. Keyes has been the Chief Executive Officer of Annaly Capital Management, Inc. since September 2015 and as its Chairman since January 1, 2018 and President since October 2012. Previously, Mr. K ...


CEO Compensation Analysis

Compensation vs. Market: Kevin's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: NLY's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NLY's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$24,93610 Jun 19
Katherine Fallon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,780
Max PriceUS$8.97
BuyUS$284,10020 May 19
Cure Fa Foundation, Inc., Endowment Arm
EntityCompany
Shares30,000
Max PriceUS$9.47
BuyUS$568,19420 May 19
Thomas Hamilton
EntityIndividual
Shares60,000
Max PriceUS$9.47
BuyUS$478,00015 May 19
Anthony Green
EntityIndividual
Role
Chief Legal Officer
Chief Corporate Officer
Shares50,000
Max PriceUS$9.56
BuyUS$955,66014 May 19
David Finkelstein
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares100,000
Max PriceUS$9.56
BuyUS$2,887,47007 May 19
Kevin Keyes
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares300,000
Max PriceUS$9.62

Ownership Breakdown


Management Team

  • Wellington Denahan-Norris (55yo)

    Co-Founder & Director

    • Tenure: 23.8yrs
    • Compensation: US$251.00k
  • Glenn Votek (61yo)

    Chief Financial Officer

    • Tenure: 6.2yrs
  • Steve Campbell

    Head of Business Operations

    • Tenure: 0.08yrs
  • Anthony Green (44yo)

    Chief Corporate Officer

    • Tenure: 2.6yrs
  • Kevin Keyes (51yo)

    Chairman

    • Tenure: 4.1yrs
  • Purvi Kamdar

    Head of Investor Relations

    • Tenure: 0yrs
  • David Finkelstein (46yo)

    Chief Investment Officer

    • Tenure: 2.9yrs
  • Helen Crossen

    Chief Administrative Officer

    • Tenure: 3.8yrs
  • Miki Kamijyo

    Chief Compliance Officer

    • Tenure: 0.7yrs
  • Jillian Detmer

    Head of Marketing - Business Development

    • Tenure: 0yrs

Board Members

  • Mike Haylon (60yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$259.00k
  • Wellington Denahan-Norris (55yo)

    Co-Founder & Director

    • Tenure: 23.8yrs
    • Compensation: US$251.00k
  • John Schaefer (67yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$269.00k
  • Donnell Segalas (61yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$277.00k
  • Jonathan Green (72yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$317.00k
  • Fran Bovich (67yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$261.00k
  • Kathy Hannan (57yo)

    Independent Director

    • Tenure: 0.7yrs
  • Kevin Keyes (51yo)

    Chairman

    • Tenure: 4.1yrs
  • Vicki Williams (46yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$251.00k
  • Katie Fallon (43yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$251.00k

Company Information

Annaly Capital Management, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Annaly Capital Management, Inc.
  • Ticker: NLY
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$13.034b
  • Shares outstanding: 1.46b
  • Website: https://www.annaly.com

Number of Employees


Location

  • Annaly Capital Management, Inc.
  • 1211 Avenue of the Americas
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLYNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1997
AAYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1997
NLY.PRDNYSE (New York Stock Exchange)PFD SER D %USUSDSep 2012
NLY.PRFNYSE (New York Stock Exchange)6.95% PFD SER FUSUSDJul 2017
NLY.PRGNYSE (New York Stock Exchange)PFD SER GUSUSDJan 2018
NLY.PRINYSE (New York Stock Exchange)6.750% CUM PFD IUSUSDJun 2019

Biography

Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-age ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:31
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.