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NRZ

New Residential InvestmentNYSE:NRZ Stock Report

Market Cap

US$5.4b

7D

1.5%

1Y

31.6%

Updated

23 Oct, 2021

Data

Company Financials +
NRZ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health1/6
Dividends4/6

NRZ Overview

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

Summary of all time highs, changes and price drops for New Residential Investment
Historical stock prices
Current Share PriceUS$11.49
52 Week HighUS$7.27
52 Week LowUS$11.55
Beta1.87
1 Month Change3.14%
3 Month Change21.98%
1 Year Change31.62%
3 Year Change-34.19%
5 Year Change-17.46%
Change since IPO-15.02%

Recent News & Updates

Oct 10

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.

Sep 10

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.

Aug 19

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.

Aug 01

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.

Shareholder Returns

NRZUS Mortgage REITsUS Market
7D1.5%1.2%1.7%
1Y31.6%36.7%30.3%

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.

Price Volatility

Is NRZ's price volatile compared to industry and market?
NRZ volatility
NRZ Beta1.87
Industry Beta1.46
Market Beta1

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

FoundedEmployeesCEOWebsite
20116,128Michael Nierenberghttps://www.newresi.com

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

How do New Residential Investment's earnings and revenue compare to its market cap?
NRZ fundamental statistics
Market CapUS$5.36b
Earnings (TTM)US$545.43m
Revenue (TTM)US$2.26b

9.8x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NRZ income statement (TTM)
RevenueUS$2.26b
Cost of RevenueUS$0
Gross ProfitUS$2.26b
ExpensesUS$1.71b
EarningsUS$545.43m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)1.17
Gross Margin100.00%
Net Profit Margin24.15%
Debt/Equity Ratio473.1%

How did NRZ perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

59%

Payout Ratio

Valuation

Is New Residential Investment undervalued compared to its fair value and its price relative to the market?

45.7%

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.


Future Growth

How is New Residential Investment forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

17.9%

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%).


Past Performance

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

-35.7%

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.


Financial Health

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.


Balance Sheet


Dividend

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

8.70%

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).


Next Steps

Management

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

5.4yrs

Average board tenure


CEO

Michael Nierenberg (58 yo)

7.92yrs

Tenure

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...


Board Members

Experienced Board: NRZ's board of directors are considered experienced (5.4 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 12.2%.


Top Shareholders

Company Information

New Residential Investment Corp.'s 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$5.361b
  • Shares outstanding: 466.58m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 22:24
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.