New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States.
New Residential Investment Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$11.49|
|52 Week High||US$7.27|
|52 Week Low||US$11.55|
|1 Month Change||3.14%|
|3 Month Change||21.98%|
|1 Year Change||31.62%|
|3 Year Change||-34.19%|
|5 Year Change||-17.46%|
|Change since IPO||-15.02%|
Recent News & Updates
New Residential Investment: Safety First
This article analyzes the business fundamentals of New Residential Investment Corp., with a special focus on its safety and leverage. In particular, NRZ’s recent Caliber acquisition will enhance the diversification of its income stream and help to drive higher earnings in any rate environment. More importantly and reassuringly, the results also show that its profitability and acquisition are achieved with stable leveraging.
New Residential: Revisiting An Old Friend
In hindsight, investors clearly underestimated the risk within the New Residential model several years ago. Today, those risks look more priced in given how the stock trades. That said, the Caliber acquisition (which does not get talked about enough) offsets a lot of these risks going forward. Shares are below fair value here, but not quite enough to get me involved again.
New Residential Investment Corp.: Alpha Generation Via Yield Spread
My last article analyzed New Residential Investment Corp. by its yield spread relative to the 10-year treasury rate and BBA bond yield. The results suggested slight overvaluation but still good potential for a single-digit return and a good 8% current dividend income in the mid-term. This article first provides an update to the change in the yield spread since my last writing. Secondly, building on the previous results, this article also discusses an alpha generation method based on the yield spread.
New Residential Investment: Reassessment And Responses
My last article analyzed New Residential Investment Corp by its yield spread relative to the 10-year Treasury rate. The results suggested slight overvaluation but still good potential for a single-digit return and a good 8% current dividend income in the mid term. This article furthers the analysis using an alternative yield spread and also addresses some of the comments received on my last article.
|NRZ||US Mortgage REITs||US Market|
Return vs Industry: NRZ underperformed the US Mortgage REITs industry which returned 36.7% over the past year.
Return vs Market: NRZ exceeded the US Market which returned 30.3% over the past year.
Stable Share Price: NRZ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NRZ's weekly volatility (3%) has been stable over the past year.
About the Company
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 five segments: Origination, Servicing, MSR Related Investments, Residential Securities and Loans, and Consumer Loans. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, including the basic fee component of the related MSRs.
New Residential Investment Fundamentals Summary
|NRZ fundamental statistics|
Is NRZ overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NRZ income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 02, 2021
|Earnings per share (EPS)||1.17|
|Net Profit Margin||24.15%|
How did NRZ perform over the long term?See historical performance and comparison
8.7%Current Dividend Yield
Is New Residential Investment undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NRZ ($11.49) is trading below our estimate of fair value ($21.17)
Significantly Below Fair Value: NRZ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NRZ is good value based on its PE Ratio (9.8x) compared to the US Mortgage REITs industry average (9.9x).
PE vs Market: NRZ is good value based on its PE Ratio (9.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: NRZ is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: NRZ's PB Ratio (1x) is in line with the US Mortgage REITs industry average.
How is New Residential Investment forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NRZ's forecast earnings growth (17.9% per year) is above the savings rate (2%).
Earnings vs Market: NRZ's earnings (17.9% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: NRZ's earnings are forecast to grow, but not significantly.
Revenue vs Market: NRZ's revenue (11.8% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: NRZ's revenue (11.8% per year) is forecast to grow slower 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 (14.2%).
How has New Residential Investment performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NRZ has high quality earnings.
Growing Profit Margin: NRZ became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NRZ's earnings have declined by 35.7% per year over the past 5 years.
Accelerating Growth: NRZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NRZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (52.5%).
Return on Equity
High ROE: NRZ's Return on Equity (10.6%) is considered low.
How is New Residential Investment's financial position?
Financial Position Analysis
Short Term Liabilities: NRZ's short term assets ($16.1B) do not cover its short term liabilities ($17.4B).
Long Term Liabilities: NRZ's short term assets ($16.1B) exceed its long term liabilities ($13.7B).
Debt to Equity History and Analysis
Debt Level: NRZ's debt to equity ratio (473.1%) is considered high.
Reducing Debt: NRZ's debt to equity ratio has increased from 415.9% to 473.1% over the past 5 years.
Debt Coverage: NRZ's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if NRZ's interest payments on its debt are well covered by EBIT.
What is New Residential Investment current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NRZ's dividend (8.7%) is higher than the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: NRZ's dividend (8.7%) is in the top 25% of dividend payers in the US market (3.47%)
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 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (58.5%), NRZ's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NRZ's dividends in 3 years are forecast to be covered by earnings (59.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Michael Nierenberg (58 yo)
Mr. Michael Nierenberg is Chief Executive Officer and Chairman at Fortress Capital Acquisition Corp. He is a Managing Director at Fortress’s Private Equity Group. He is Chief Executive Officer and Chairman...
Experienced Board: NRZ's board of directors are considered experienced (5.4 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.2%.
New Residential Investment Corp.'s employee growth, exchange listings and data sources
- Name: New Residential Investment Corp.
- Ticker: NRZ
- Exchange: NYSE
- Founded: 2011
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$5.361b
- Shares outstanding: 466.58m
- Website: https://www.newresi.com
Number of Employees
- New Residential Investment Corp.
- 1345 Avenue Of The Americas
- 45th Floor
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/23 22:24|
|End of Day Share Price||2021/10/22 00:00|
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.