Annaly Capital Management
Market Cap
US$9.8b
Last Updated
2020/10/29 00:26 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
Dividend of 12.38% 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
-2.7%
NLY
-0.2%
US Mortgage REITs
-1.1%
US Market
1 Year Return
-22.3%
NLY
-38.6%
US Mortgage REITs
15.0%
US Market
Return vs Industry: NLY exceeded the US Mortgage REITs industry which returned -38.6% over the past year.
Return vs Market: NLY underperformed the US Market which returned 15.6% over the past year.
Shareholder returns
| NLY | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -0.2% | -1.1% |
| 30 Day | -2.0% | -2.0% | 2.9% |
| 90 Day | -5.8% | -0.7% | 5.7% |
| 1 Year | -11.3%-22.3% | -31.9%-38.6% | 17.6%15.0% |
| 3 Year | -11.5%-38.2% | -19.8%-42.2% | 38.9%29.7% |
| 5 Year | 29.8%-27.4% | 16.0%-33.1% | 78.4%58.4% |
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
Annaly Capital Management, Inc. (NYSE:NLY) Insiders Increased Their Holdings2 months ago | Simply Wall St
How Much Of Annaly Capital Management, Inc. (NYSE:NLY) Do Institutions Own?4 months ago | Simply Wall St
Is Now The Time To Look At Buying Annaly Capital Management, Inc. (NYSE:NLY)?Valuation
Is Annaly Capital Management undervalued compared to its fair value and its price relative to the market?
30.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NLY ($7.11) is trading below our estimate of fair value ($10.02)
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's PB Ratio (0.8x) is in line with the US Mortgage REITs industry average.
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?
122.8%
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 (65.4% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: NLY's revenue (65.4% 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 (11.4%).
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 (-36.7%).
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 ($12.4B) do not cover its short term liabilities ($71.7B).
Long Term Liabilities: NLY's short term assets ($12.4B) exceed its long term liabilities ($8.0B).
Debt to Equity History and Analysis
Debt Level: NLY's debt to equity ratio (557.5%) is considered high.
Reducing Debt: NLY's debt to equity ratio has increased from 491% to 557.5% 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?
12.61%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NLY's dividend (12.38%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: NLY's dividend (12.38%) is in the top 25% of dividend payers in the US market (4.63%)
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 (90.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
David Finkelstein (47 yo)
0.58
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Vice Chair of the Board | 0.92yr | US$265.00k | 0.13% $ 12.8m | |
| CEO, Chief Investment Officer & Director | 0.58yr | no data | 0.036% $ 3.5m | |
| Chief Financial Officer | 0.83yr | no data | 0.0014% $ 140.0k | |
| Chief Operating Officer | 1.08yrs | no data | 0.0035% $ 346.6k | |
| Chief Administrative Officer | 4.75yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Chief Corporate Officer | 3.58yrs | no data | 0.012% $ 1.1m | |
| Chief Compliance Officer | 1.58yrs | no data | no data | |
| Head of Marketing - Business Development | no data | no data | no data | |
| Managing Director of Agency Portfolio Team | 12.5yrs | no data | no data | |
| Head of Alternative Financing | 12.5yrs | no data | no data | |
| Global Head of Debt Investments - CreXus | 9.33yrs | no data | no data |
4.2yrs
Average Tenure
47yo
Average Age
Experienced Management: NLY's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Vice Chair of the Board | 0.92yr | US$265.00k | 0.13% $ 12.8m | |
| CEO, Chief Investment Officer & Director | 0.58yr | no data | 0.036% $ 3.5m | |
| Independent Chairman of the Board | 0.75yr | US$265.00k | 0% $ 0 | |
| Independent Director | 7.42yrs | US$285.00k | 0.0062% $ 611.0k | |
| Independent Director | 23.75yrs | US$285.00k | 0.0078% $ 763.8k | |
| Director | 0.92yr | no data | 0.025% $ 2.4m | |
| Independent Director | 6.42yrs | US$275.00k | 0.00096% $ 94.0k | |
| Independent Director | 1.58yrs | US$280.00k | 0.0011% $ 108.7k | |
| Independent Director | 1.58yrs | US$265.00k | 0.015% $ 1.5m | |
| Independent Director | 2.75yrs | US$265.00k | 0% $ 0 | |
| Independent Director | 2.75yrs | US$265.00k | 0.0017% $ 163.5k |
1.6yrs
Average Tenure
58yo
Average Age
Experienced Board: NLY's board of directors are not considered experienced ( 1.7 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: 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 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$9.792b
- 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
| 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) | 6.75% PFD SER 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-age ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/29 00:26 |
| End of Day Share Price | 2020/10/28 00:00 |
| Earnings | 2020/06/30 |
| 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.