NYSE:NRZ

Stock Analysis Report

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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 Analysis

High growth potential with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

NRZ

1.9%

US Mortgage REITs

2.5%

US Market


1 Year Return

-46.2%

NRZ

-37.4%

US Mortgage REITs

16.3%

US Market

Return vs Industry: NRZ underperformed the US Mortgage REITs industry which returned -37.3% over the past year.

Return vs Market: NRZ underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

NRZIndustryMarket
7 Day1.6%1.9%2.5%
30 Day18.2%12.4%5.3%
90 Day27.7%21.1%16.3%
1 Year-41.4%-46.2%-30.1%-37.4%18.8%16.3%
3 Year-32.6%-51.3%-19.5%-42.2%45.0%35.7%
5 Year-0.7%-45.1%9.5%-37.1%75.8%56.8%

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?

19.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NRZ ($8.06) is trading below our estimate of fair value ($9.95)

Significantly Below Fair Value: NRZ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NRZ is unprofitable, so we can't compare its PE Ratio to the US Mortgage REITs industry average.

PE vs Market: NRZ 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 NRZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NRZ's PB Ratio (0.7x) is in line with the US Mortgage REITs industry average.


Next Steps

Future Growth

How is New Residential Investment forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

109.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRZ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: NRZ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NRZ's is expected to become profitable in the next 3 years.

Revenue vs Market: NRZ's revenue (184.4% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: NRZ's revenue (184.4% 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 (11.5%).


Next Steps

Past Performance

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

-14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRZ is currently unprofitable.

Growing Profit Margin: NRZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NRZ is unprofitable, and losses have increased over the past 5 years at a rate of 14.4% per year.

Accelerating Growth: Unable to compare NRZ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NRZ is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-53.4%).


Return on Equity

High ROE: NRZ has a negative Return on Equity (-20.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is New Residential Investment's financial position?


Financial Position Analysis

Short Term Liabilities: NRZ's short term assets ($11.1B) exceed its short term liabilities ($7.4B).

Long Term Liabilities: NRZ's short term assets ($11.1B) exceed its long term liabilities ($11.0B).


Debt to Equity History and Analysis

Debt Level: NRZ's debt to equity ratio (308.2%) is considered high.

Reducing Debt: NRZ's debt to equity ratio has reduced from 333.6% to 308.2% over the past 5 years.

Debt Coverage: NRZ's debt is well covered by operating cash flow (23.6%).

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


Balance Sheet


Next Steps

Dividend

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

4.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRZ's dividend (4.96%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: NRZ's dividend (4.96%) is in the top 25% of dividend payers in the US market (4.36%)


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 has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: NRZ is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NRZ's dividends in 3 years are not forecast to be well covered by earnings (105.7% payout ratio).


Next Steps

Management

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

5.7yrs

Average board tenure


CEO

Michael Nierenberg (57 yo)

6.75yrs

Tenure

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 ...


Board Members

NamePositionTenureCompensationOwnership
Michael Nierenberg
Chairman6.75yrsno data0.26%
$ 8.8m
Pamela Lenehan
Independent Director1.33yrsUS$143.89k0.0078%
$ 260.4k
Douglas Jacobs
Independent Director7.17yrsUS$220.01k0.011%
$ 384.0k
David Saltzman
Independent Director7.33yrsUS$200.01k0.014%
$ 470.5k
Kevin Finnerty
Independent Director7.33yrsUS$200.02k0.060%
$ 2.0m
Robert McGinnis
Independent Director3.67yrsUS$200.02k0.022%
$ 732.5k
Alan Tyson
Independent Director7.33yrsUS$200.02k0.036%
$ 1.2m
Andrew Sloves
Independent Director4.17yrsUS$200.02k0.025%
$ 848.4k

5.7yrs

Average Tenure

64yo

Average Age

Experienced Board: NRZ's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NRZ 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

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$3.351b
  • Shares outstanding: 415.74m
  • 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)7.50% PFD SER AUSUSDJun 2019
NRZ.PRBNYSE (New York Stock Exchange)7.125 SR B PFDUSUSDAug 2019
NRZ.PRCNYSE (New York Stock Exchange)6.375 PFD SER CUSUSDFeb 2020

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 Origination, Servicing, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:38
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.