NYSE:NRZ

Stock Analysis Report

Executive Summary

New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States.

Snowflake

Fundamentals

High growth potential and fair value.


Similar Companies

Share Price & News

How has New Residential Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NRZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

NRZ

-0.2%

US Mortgage REITs

0.4%

US Market


1 Year Return

-7.2%

NRZ

-2.1%

US Mortgage REITs

13.1%

US Market

Return vs Industry: NRZ underperformed the US Mortgage REITs industry which returned -2.1% over the past year.

Return vs Market: NRZ underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

NRZIndustryMarket
7 Day-0.5%-0.2%0.4%
30 Day4.0%2.3%4.0%
90 Day13.3%3.9%7.4%
1 Year5.6%-7.2%9.0%-2.1%15.6%13.1%
3 Year59.3%11.1%40.9%1.8%48.2%38.6%
5 Year134.1%26.0%55.0%-11.1%62.6%44.6%

Price Volatility Vs. Market

How volatile is New Residential Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Residential Investment 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: NRZ ($16.05) is trading below our estimate of fair value ($37.42)

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


Price To Earnings Ratio

PE vs Industry: NRZ is poor value based on its PE Ratio (18.7x) compared to the Mortgage REITs industry average (13.2x).

PE vs Market: NRZ is poor value based on its PE Ratio (18.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NRZ is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

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


Next Steps

Future Growth

How is New Residential Investment forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRZ's forecast earnings growth (26.3% per year) is above the savings rate (2.7%).

Earnings vs Market: NRZ's earnings (26.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NRZ's revenue (27.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NRZ's revenue (27.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NRZ's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has New Residential Investment performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRZ has a high level of non-cash earnings.

Growing Profit Margin: NRZ's current net profit margins (29%) are lower than last year (67.5%).


Past Earnings Growth Analysis

Earnings Trend: NRZ's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: NRZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NRZ had negative earnings growth (-73%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-0.9%).


Return on Equity

High ROE: NRZ's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Residential Investment'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: NRZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: NRZ's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is New Residential Investment's current dividend yield, its reliability and sustainability?

12.46%

Current Dividend Yield


Dividend Yield vs Market

company12.5%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years12.5%

Current dividend yield vs market & industry

Notable Dividend: NRZ's dividend (12.46%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NRZ's dividend (12.46%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: NRZ has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NRZ's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (233%), NRZ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NRZ's dividends in 3 years are not forecast to be well covered by earnings (92.4% payout ratio).


Next Steps

Management

What is the CEO of New Residential Investment's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Michael Nierenberg (56yo)

6yrs

Tenure

0

Michael Nierenberg is a Managing Director at Fortress. Mr. Nierenberg served as Managing Director and head of Global Mortgages and Securitized Products at Bank of America Merrill Lynch, with responsibility ...


Management Age and Tenure

4.2yrs

Average Tenure

47yo

Average Age

Experienced Management: NRZ's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

63yo

Average Age

Experienced Board: NRZ's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: NRZ insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$15,93007 Nov 19
Andrew Sloves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$15.93
BuyUS$70,77730 Oct 19
Robert McGinnis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,500
Max PriceUS$15.73
BuyUS$29,97415 May 19
Andrew Sloves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,800
Max PriceUS$16.66
BuyUS$236,13906 May 19
David Saltzman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,174
Max PriceUS$16.66
BuyUS$990,00025 Feb 19
Michael Nierenberg
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares60,000
Max PriceUS$16.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.1%.


Management Team

  • Michael Nierenberg (56yo)

    Chairman

    • Tenure: 6yrs
  • Cameron MacDougall (43yo)

    Secretary

    • Tenure: 0yrs
  • Nick Santoro (51yo)

    CFO & Treasurer

    • Tenure: 4.2yrs
  • David Schneider (37yo)

    Chief Accounting Officer

    • Tenure: 1.8yrs
  • Kaitlyn Mauritz

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Pam Lenehan (67yo)

    Independent Director

    • Tenure: 0.6yrs
  • Doug Jacobs (71yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$240.00k
  • David Saltzman (57yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$200.00k
  • Kevin Finnerty (64yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$200.00k
  • Michael Nierenberg (56yo)

    Chairman

    • Tenure: 6yrs
  • Bob McGinnis (66yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$200.00k
  • Alan Tyson (62yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$200.00k
  • Andrew Sloves (55yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$200.00k

Company Information

New Residential Investment Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Residential Investment Corp.
  • Ticker: NRZ
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$6.669b
  • Shares outstanding: 415.52m
  • Website: https://www.newresi.com

Number of Employees


Location

  • New Residential Investment Corp.
  • 1345 Avenue Of The Americas
  • 45th Floor
  • New York
  • New York
  • 10105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRZNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2013
14N1DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2013
0K76LSE (London Stock Exchange)YesCommon StockGBUSDMay 2013
NRZ.PRANYSE (New York Stock Exchange)7.5 CUM PFD SR AUSUSDJun 2019
NRZ.PRBNYSE (New York Stock Exchange)7.125% CUM PFD BUSUSDAug 2019

Biography

New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States. It operates through Servicing and Originatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:37
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.