NYSE:NLY

Stock Analysis Report

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Executive Summary

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


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

-0.4%

NLY

1.8%

US Mortgage REITs

2.5%

US Market


1 Year Return

-21.8%

NLY

-37.3%

US Mortgage REITs

16.3%

US Market

Return vs Industry: NLY exceeded the US Mortgage REITs industry which returned -38.3% over the past year.

Return vs Market: NLY underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

NLYIndustryMarket
7 Day-0.4%1.8%2.5%
30 Day14.2%12.7%5.6%
90 Day18.8%18.5%16.4%
1 Year-11.0%-21.8%-30.0%-37.3%18.8%16.3%
3 Year-14.3%-39.8%-19.5%-42.2%45.1%35.7%
5 Year26.8%-29.0%9.4%-37.2%75.8%56.8%

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?

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NLY ($7.38) is trading below our estimate of fair value ($9.31)

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 US 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 (0.9x) compared to the US Mortgage REITs industry average (0.7x).


Next Steps

Future Growth

How is Annaly Capital Management forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

134.7%

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 (2.2%).

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 (31.7% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: NLY's revenue (31.7% 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 (11.5%).


Next Steps

Past Performance

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

-39.9%

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 39.9% 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 (-51.4%).


Return on Equity

High ROE: NLY has a negative Return on Equity (-16.82%), as it is currently unprofitable.


Next Steps

Financial Health

How is Annaly Capital Management's financial position?


Financial Position Analysis

Short Term Liabilities: NLY's short term assets ($6.6B) do not cover its short term liabilities ($56.1B).

Long Term Liabilities: NLY's short term assets ($6.6B) do not cover its long term liabilities ($23.5B).


Debt to Equity History and Analysis

Debt Level: NLY's debt to equity ratio (557.4%) is considered high.

Reducing Debt: NLY's debt to equity ratio has increased from 491% to 557.4% over the past 5 years.

Debt Coverage: NLY's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

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

11.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NLY's dividend (11.92%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: NLY's dividend (11.92%) is in the top 25% of dividend payers in the US market (4.45%)


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 (93.5% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

David Finkelstein (47 yo)

0.42

Tenure

Mr. David L. Finkelstein, C.F.A., serves as Chief Executive Officer and Director at Annaly Capital Management, Inc. (“Annaly“) since March 13, 2020 and also serves as its Chief Investment Officer since Nov ...


Leadership Team

NamePositionTenureCompensationOwnership
Wellington Denahan-Norris
Co-Founder & Vice Chair of the Board0.75yrUS$265.00k0.13%
$ 13.5m
David Finkelstein
CEO, Chief Investment Officer & Director0.42yrno data0.036%
$ 3.7m
Serena Wolfe
Chief Financial Officer0.67yrno data0.0014%
$ 147.5k
Steve Campbell
Chief Operating Officer0.92yrno data0.0035%
$ 365.7k
Helen Crossen
Chief Administrative Officer4.58yrsno datano data
Purvi Kamdar
Head of Investor Relationsno datano datano data
Anthony Green
Chief Corporate Officer3.42yrsno data0.012%
$ 1.2m
Miki Kamijyo
Chief Compliance Officer1.5yrsno datano data
Jillian Detmer
Head of Marketing - Business Developmentno datano datano data
Nancy Murtha
Managing Director of Agency Portfolio Team12.33yrsno datano data
Konstantin Pavlov
Head of Alternative Financing12.33yrsno datano data
Robert Karner
Global Head of Debt Investments - CreXus9.17yrsno datano data

4.0yrs

Average Tenure

47yo

Average Age

Experienced Management: NLY's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wellington Denahan-Norris
Co-Founder & Vice Chair of the Board0.75yrUS$265.00k0.13%
$ 13.5m
David Finkelstein
CEO, Chief Investment Officer & Director0.42yrno data0.036%
$ 3.7m
Glenn Votek
Senior Advisor & Director0.75yrno data0.015%
$ 1.6m
Michael Haylon
Independent Chairman of the Board0.58yrUS$265.00kno data
John Schaefer
Independent Director7.25yrsUS$285.00k0.0062%
$ 646.2k
Donnell Segalas
Independent Director23.58yrsUS$285.00k0.0078%
$ 808.2k
Francine Bovich
Independent Director6.25yrsUS$275.00k0.00096%
$ 99.7k
Kathy Hannan
Independent Director1.5yrsUS$280.00k0.0011%
$ 115.3k
Thomas Hamilton
Independent Director1.42yrsUS$265.00k0.015%
$ 1.5m
Vicki Williams
Independent Director2.58yrsUS$265.00kno data
Katherine Fallon
Independent Director2.58yrsUS$265.00k0.0017%
$ 172.4k

1.5yrs

Average Tenure

58yo

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 not been meaningfully diluted in the past year.


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$10.389b
  • Shares outstanding: 1.41b
  • 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 Analysis2020/08/08 00:41
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.