Annaly Capital Management
Market Cap
US$12.7b
Last Updated
2021/05/06 23:37 UTC
Data Sources
Company Financials +
Executive Summary
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 42.6% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Good value average dividend payer.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NLY's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.7%
NLY
-1.6%
US Mortgage REITs
-1.7%
US Market
1 Year Return
50.2%
NLY
66.1%
US Mortgage REITs
51.8%
US Market
Return vs Industry: NLY underperformed the US Mortgage REITs industry which returned 69.5% over the past year.
Return vs Market: NLY underperformed the US Market which returned 52.8% over the past year.
Shareholder returns
| NLY | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | -1.6% | -1.7% |
| 30 Day | 5.1% | 2.2% | 1.5% |
| 90 Day | 6.8% | 9.4% | 3.1% |
| 1 Year | 68.7%50.2% | 83.2%66.1% | 54.4%51.8% |
| 3 Year | 25.9%-11.9% | 12.3%-17.6% | 63.0%52.8% |
| 5 Year | 46.0%-17.6% | 51.0%-11.6% | 127.2%101.9% |
Long-Term 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
1 month ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Annaly Capital Management, Inc. (NYSE:NLY) Shares?2 months ago | Simply Wall St
Annaly Capital Management, Inc.'s (NYSE:NLY) Has Found A Path To Profitability3 months ago | Simply Wall St
How Much Are Annaly Capital Management, Inc. (NYSE:NLY) Insiders Spending On Buying Shares?Valuation
Is Annaly Capital Management undervalued compared to its fair value and its price relative to the market?
31.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NLY ($9.15) is trading below our estimate of fair value ($13.38)
Significantly Below Fair Value: NLY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NLY is good value based on its PE Ratio (2.9x) compared to the US Mortgage REITs industry average (11.4x).
PE vs Market: NLY is good value based on its PE Ratio (2.9x) compared to the US market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: NLY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NLY's PB Ratio (1x) is in line with the US Mortgage REITs industry average.
Future Growth
How is Annaly Capital Management forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-42.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NLY's earnings are forecast to decline over the next 3 years (-42.6% per year).
Earnings vs Market: NLY's earnings are forecast to decline over the next 3 years (-42.6% per year).
High Growth Earnings: NLY's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NLY's revenue is expected to decline over the next 3 years (-57.5% per year).
High Growth Revenue: NLY's revenue is forecast to decline over the next 3 years (-57.5% 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 (10.9%).
Past Performance
How has Annaly Capital Management performed over the past 5 years?
-27.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NLY has a large one-off loss of $1.8B impacting its March 31 2021 financial results.
Growing Profit Margin: NLY became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NLY has become profitable over the past 5 years, growing earnings by -27.8% per year.
Accelerating Growth: NLY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NLY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (27.6%).
Return on Equity
High ROE: Whilst NLY's Return on Equity (32%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Annaly Capital Management's financial position?
Financial Position Analysis
Short Term Liabilities: NLY's short term assets ($12.6B) do not cover its short term liabilities ($50.6B).
Long Term Liabilities: NLY's short term assets ($12.6B) do not cover its long term liabilities ($20.7B).
Debt to Equity History and Analysis
Debt Level: NLY's debt to equity ratio (471.1%) is considered high.
Reducing Debt: NLY's debt to equity ratio has reduced from 557.9% to 471.1% over the past 5 years.
Debt Coverage: NLY's debt is not well covered by operating cash flow (0.8%).
Interest Coverage: Insufficient data to determine if NLY's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Annaly Capital Management current dividend yield, its reliability and sustainability?
9.62%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NLY's dividend (9.62%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: NLY's dividend (9.62%) is in the top 25% of dividend payers in the US market (3.42%)
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: With its reasonably low payout ratio (28.4%), NLY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NLY's dividends in 3 years are forecast to be covered by earnings (83.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
David Finkelstein (47 yo)
1.17yrs
Tenure
US$13,203,778
Compensation
Mr. David L. Finkelstein, C.F.A., serves as Chief Executive Officer and Director at Annaly Capital Management, Inc. since March 13, 2020 and also its Chief Investment Officer since November 2016. Mr. Finke...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD13.20M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.
Leadership Team
Experienced Management: NLY's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: NLY's board of directors are not considered experienced ( 2.2 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 only sold shares 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$12.740b
- Shares outstanding: 1.40b
- 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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 23:37 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.