Annaly Capital Management
Market Cap
US$14.9b
Last Updated
2020/02/17 23:30 UTC
Data Sources
Company Financials +
Executive Summary
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets.
Rewards
Risk Analysis
Dividend of 9.6% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
High growth potential 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
Stable Share Price: NLY has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.5%
NLY
2.0%
US Mortgage REITs
0.9%
US Market
1 Year Return
2.3%
NLY
7.1%
US Mortgage REITs
20.0%
US Market
Return vs Industry: NLY underperformed the US Mortgage REITs industry which returned 7.2% over the past year.
Return vs Market: NLY underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| NLY | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.5% | 2.0% | 0.9% |
| 30 Day | 7.4% | 4.0% | 1.4% |
| 90 Day | 13.5% | 9.2% | 8.8% |
| 1 Year | 14.3%2.3% | 18.8%7.1% | 22.5%20.0% |
| 3 Year | 33.7%-3.7% | 45.4%5.1% | 49.9%40.3% |
| 5 Year | 70.7%-2.8% | 73.9%-0.1% | 73.2%54.1% |
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
4 weeks ago | Simply Wall St
What Kind Of Shareholder Appears On The Annaly Capital Management, Inc.'s (NYSE:NLY) Shareholder Register?2 months ago | Simply Wall St
Trade Alert: The Independent Director Of Annaly Capital Management, Inc. (NYSE:NLY), John Schaefer, Has Just Spent US$92k Buying Shares3 months ago | Simply Wall St
Are Insiders Buying Annaly Capital Management, Inc. (NYSE:NLY) Stock?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 ($10.42) is trading below our estimate of fair value ($21.73)
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 (1.1x) 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?
106.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NLY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: NLY is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NLY's is expected to become profitable in the next 3 years.
Revenue vs Market: NLY's revenue (77.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: NLY's revenue (77.9% 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 (11.8%).
Next Steps
Past Performance
How has Annaly Capital Management performed over the past 5 years?
-18.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NLY is currently unprofitable.
Growing Profit Margin: NLY is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NLY is unprofitable, and losses have increased over the past 5 years at a rate of -18.7% 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 (7.3%).
Return on Equity
High ROE: NLY has a negative Return on Equity (-13.69%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
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).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: NLY has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: NLY has been profitable on average in the past, therefore cash runway is not a concern.
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?
9.60%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NLY's dividend (9.6%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: NLY's dividend (9.6%) is in the top 25% of dividend payers in the US market (3.69%)
Stability and Growth of Payments
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 not forecast to be well covered by earnings (91.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Glenn Votek (61yo)
0.3yrs
Tenure
Mr. Glenn A. Votek serves as Interim Chief Executive Officer, Interim President and Director at Annaly Capital Management, Inc. since November 21, 2019. Mr. Votek was Chief Financial Officer of Annaly Capi ...
CEO Compensation Analysis
Compensation vs Market: Glenn's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Insufficient data to compare Glenn's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Vice Chair of the Board | 0.3yrs | US$251.00k | 0.13% $18.9m | |
| Interim CEO | 0.3yrs | no data | 0.015% $2.3m | |
| Chief Financial Officer | 0.2yrs | no data | no data | |
| Head of Business Operations | 0.4yrs | no data | no data | |
| Chief Investment Officer | 3.3yrs | no data | 0.028% $4.2m | |
| Chief Administrative Officer | 4.1yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Chief Corporate Officer | 2.9yrs | no data | 0.011% $1.6m | |
| Chief Compliance Officer | 1yrs | no data | no data | |
| Head of Marketing - Business Development | 0yrs | no data | no data |
2.0yrs
Average Tenure
46yo
Average Age
Experienced Management: NLY's management team is not considered experienced ( 2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Vice Chair of the Board | 0.3yrs | US$251.00k | 0.13% $18.9m | |
| Interim CEO | 0.3yrs | no data | 0.015% $2.3m | |
| Independent Director | 11.7yrs | US$259.00k | no data | |
| Independent Director | 6.8yrs | US$269.00k | 0.0061% $912.1k | |
| Independent Director | 23.1yrs | US$277.00k | 0.0076% $1.1m | |
| Independent Vice Chair of the Board | 0.3yrs | US$317.00k | 0.0032% $476.9k | |
| Independent Director | 5.8yrs | US$261.00k | 0.00094% $140.1k | |
| Independent Director | 1yrs | no data | no data | |
| Independent Chair of the Board | 0.3yrs | no data | 0.015% $2.2m | |
| Independent Director | 2.1yrs | US$251.00k | 0.0011% $162.5k |
1.5yrs
Average Tenure
60.5yo
Average Age
Experienced Board: NLY's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NLY 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 18.6%.
Top Shareholders
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$14.904b
- Shares outstanding: 1.43b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NLY | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 1997 |
| AAY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1997 |
| NLY.PRD | NYSE (New York Stock Exchange) | PFD SER D % | US | USD | Sep 2012 | |
| NLY.PRF | NYSE (New York Stock Exchange) | 6.95% PFD SER F | US | USD | Jul 2017 | |
| NLY.PRG | NYSE (New York Stock Exchange) | PFD SER G | US | USD | Jan 2018 | |
| NLY.PRI | NYSE (New York Stock Exchange) | 6.750% CUM PFD I | US | USD | Jun 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-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. It also provides financing to private equity-backed middle market businesses; and operates as a broker-dealer. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 23:30 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.