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New Residential Investment

NYSE:NRZ
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NRZ
NYSE
$7B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States. The last earnings update was 63 days ago. More info.


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NRZ Share Price and Events
7 Day Returns
-0.2%
NYSE:NRZ
-0.1%
US Mortgage REITs
-0.8%
US Market
1 Year Returns
0.5%
NYSE:NRZ
1.3%
US Mortgage REITs
7%
US Market
NRZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
New Residential Investment (NRZ) -0.2% 0.2% 1.7% 0.5% 35.3% 36.8%
US Mortgage REITs -0.1% -0% 1.8% 1.3% 11% -7.8%
US Market -0.8% 2.7% 7.5% 7% 37.9% 47%
1 Year Return vs Industry and Market
  • NRZ underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
NRZ
Industry
5yr Volatility vs Market

NRZ Value

 Is New Residential Investment undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of New Residential Investment to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for New Residential Investment.

NYSE:NRZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $16.85 * 13.7%
$2.30
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $16.85
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NRZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.288 (1 + (1- 21%) (330.13%))
1.026
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.026 * 5.96%)
8.84%

Discounted Cash Flow Calculation for NYSE:NRZ using Excess Returns Model Model

The calculations below outline how an intrinsic value for New Residential Investment is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:NRZ Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.7% – 8.84%) * $16.85)
$0.81
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.81 / (8.84% - 2.73%)
$13.25
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $16.85 + $13.25
$30.11
NYSE:NRZ Discount to Share Price
Calculation Result
Value per share (USD) From above. $30.11
Current discount Discount to share price of $16.63
= -1 x ($16.63 - $30.11) / $30.11
44.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price New Residential Investment is available for.
Intrinsic value
45%
Share price is $16.63 vs Future cash flow value of $30.11
Current Discount Checks
For New Residential Investment to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • New Residential Investment's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • New Residential Investment's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for New Residential Investment's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are New Residential Investment's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NRZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.82
NYSE:NRZ Share Price ** NYSE (2019-04-22) in USD $16.63
United States of America Mortgage REITs Industry PE Ratio Median Figure of 22 Publicly-Listed Mortgage REITs Companies 11.42x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of New Residential Investment.

NYSE:NRZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NRZ Share Price ÷ EPS (both in USD)

= 16.63 ÷ 2.82

5.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Residential Investment is good value based on earnings compared to the US Mortgage REITs industry average.
  • New Residential Investment is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does New Residential Investment's expected growth come at a high price?
Raw Data
NYSE:NRZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-0.1%per year
United States of America Mortgage REITs Industry PEG Ratio Median Figure of 19 Publicly-Listed Mortgage REITs Companies 1.03x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:NRZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.89x ÷ -0.1%

-42.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Residential Investment earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on New Residential Investment's assets?
Raw Data
NYSE:NRZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $16.25
NYSE:NRZ Share Price * NYSE (2019-04-22) in USD $16.63
United States of America Mortgage REITs Industry PB Ratio Median Figure of 36 Publicly-Listed Mortgage REITs Companies 0.99x
United States of America Market PB Ratio Median Figure of 5,186 Publicly-Listed Companies 1.91x
NYSE:NRZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NRZ Share Price ÷ Book Value per Share (both in USD)

= 16.63 ÷ 16.25

1.02x

* Primary Listing of New Residential Investment.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Residential Investment is overvalued based on assets compared to the US Mortgage REITs industry average.
X
Value checks
We assess New Residential Investment's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. New Residential Investment has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NRZ Future Performance

 How is New Residential Investment expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is New Residential Investment expected to grow at an attractive rate?
  • New Residential Investment's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • New Residential Investment's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • New Residential Investment's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NRZ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NRZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -0.1%
NYSE:NRZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 5.5%
United States of America Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 25.4%
United States of America Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 18.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NRZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NRZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 985
2020-12-31 1,724 898 2
2019-12-31 1,720 833 1
NYSE:NRZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,542 -1,229 964
2018-09-30 1,854 -358 1,252
2018-06-30 1,852 -359 1,293
2018-03-31 2,109 -7 1,440
2017-12-31 1,605 -900 958
2017-09-30 1,495 -565 894
2017-06-30 1,298 -124 767
2017-03-31 876 12 514
2016-12-31 796 561 504
2016-09-30 572 452 382
2016-06-30 468 131 338
2016-03-31 459 492 344

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • New Residential Investment's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • New Residential Investment's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NRZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from New Residential Investment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NRZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.25 2.25 2.25 1.00
2020-12-31 2.15 2.25 1.97 4.00
2019-12-31 2.00 2.18 1.87 3.00
NYSE:NRZ Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.82
2018-09-30 3.81
2018-06-30 4.04
2018-03-31 4.60
2017-12-31 3.17
2017-09-30 3.10
2017-06-30 2.83
2017-03-31 2.04
2016-12-31 2.12
2016-09-30 1.64
2016-06-30 1.47
2016-03-31 1.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • New Residential Investment is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess New Residential Investment's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
New Residential Investment has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NRZ Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare New Residential Investment's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • New Residential Investment has delivered over 20% year on year earnings growth in the past 5 years.
  • New Residential Investment's 1-year earnings growth is less than its 5-year average (0.7% vs 35.6%)
  • New Residential Investment's earnings growth has not exceeded the US Mortgage REITs industry average in the past year (0.7% vs 7%).
Earnings and Revenue History
New Residential Investment's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from New Residential Investment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NRZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,542.09 963.97 389.07
2018-09-30 1,854.06 1,251.92 293.17
2018-06-30 1,852.31 1,293.43 208.87
2018-03-31 2,108.93 1,440.41 216.51
2017-12-31 1,604.86 957.53 204.17
2017-09-30 1,495.32 894.39 211.90
2017-06-30 1,298.48 767.18 184.69
2017-03-31 876.30 514.10 136.45
2016-12-31 795.84 504.45 122.38
2016-09-30 571.52 382.28 103.37
2016-06-30 467.68 337.93 95.82
2016-03-31 458.79 344.40 100.26
2015-12-31 388.70 268.64 94.35
2015-09-30 362.47 219.89 101.28
2015-06-30 453.96 291.70 105.98
2015-03-31 558.55 340.08 108.56
2014-12-31 564.96 352.88 100.99
2014-09-30 580.95 379.15 82.82
2014-06-30 475.38 315.93 70.55
2014-03-31 357.03 301.65 48.93
2013-12-31 308.10 265.95 42.17
2013-09-30 224.58 205.76 27.00
2013-06-30 163.72 154.38 17.73
2013-03-31 56.94 51.63 11.71
2012-12-31 42.08 41.25 9.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • New Residential Investment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • New Residential Investment used its assets more efficiently than the US Mortgage REITs industry average last year based on Return on Assets.
  • Unable to establish if New Residential Investment improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess New Residential Investment's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
New Residential Investment has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NRZ Health

 How is New Residential Investment's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up New Residential Investment's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • New Residential Investment's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • New Residential Investment's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of New Residential Investment's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from New Residential Investment Company Filings, last reported 3 months ago.

NYSE:NRZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,088.30 22,807.23 383.84
2018-09-30 5,837.05 21,754.44 467.83
2018-06-30 5,798.92 15,472.72 193.57
2018-03-31 5,761.69 14,670.61 234.15
2017-12-31 4,796.16 15,747.23 298.55
2017-09-30 4,679.20 15,085.08 290.53
2017-06-30 4,618.96 16,049.24 574.53
2017-03-31 4,301.76 13,851.90 241.05
2016-12-31 3,468.18 13,184.26 297.70
2016-09-30 3,417.51 12,787.24 391.18
2016-06-30 3,113.26 12,963.24 235.89
2016-03-31 3,079.00 12,879.31 260.76
2015-12-31 2,986.58 11,306.07 253.04
2015-09-30 3,026.07 11,048.44 350.04
2015-06-30 3,095.08 10,303.80 434.39
2015-03-31 1,814.41 5,359.93 463.23
2014-12-31 1,849.93 6,072.07 249.31
2014-09-30 1,855.86 5,585.95 216.29
2014-06-30 1,811.78 5,104.63 342.12
2014-03-31 1,560.65 5,377.98 185.54
2013-12-31 1,513.08 4,109.35 307.92
2013-09-30 1,261.04 1,467.93 172.20
2013-06-30 1,245.73 1,474.34 209.70
2013-03-31 767.42 915.06
2012-12-31 378.36 150.92
  • New Residential Investment's level of debt (374.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (272.4% vs 374.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on New Residential Investment's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess New Residential Investment's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. New Residential Investment has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NRZ Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
12.03%
Current annual income from New Residential Investment dividends. Estimated to be 12.17% next year.
If you bought $2,000 of New Residential Investment shares you are expected to receive $241 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • New Residential Investment's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • New Residential Investment's dividend is above the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NRZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 10.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NRZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.12 2.00
2020-12-31 2.02 7.00
2019-12-31 2.00 7.00
NYSE:NRZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-25 2.000 11.944
2018-12-20 2.000 12.367
2018-09-20 2.000 11.623
2018-06-21 2.000 10.969
2018-03-22 2.000 11.509
2017-12-18 2.000 11.644
2017-09-22 2.000 11.449
2017-06-21 2.000 12.270
2017-01-30 1.920 11.614
2016-12-16 1.840 11.487
2016-09-23 1.840 12.714
2016-06-27 1.840 13.269
2016-03-22 1.840 14.558
2015-12-10 1.840 16.434
2015-09-22 1.840 14.683
2015-05-14 1.800 11.681
2015-03-16 1.520 9.398
2014-12-18 1.670 12.480
2014-09-18 1.550 12.429
2014-06-17 1.550 12.372
2014-03-20 1.400 11.009
2013-12-18 1.400 10.806
2013-09-18 1.400 10.895
2013-06-03 0.560 4.287

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Residential Investment has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but New Residential Investment only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of New Residential Investment's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess New Residential Investment's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can New Residential Investment afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. New Residential Investment has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NRZ Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Nierenberg
COMPENSATION $0
AGE 55
TENURE AS CEO 5.4 years
CEO Bio

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 for all sales and trading activities within the division. Mr. Nierenberg joined Bank of America Merrill Lynch in November 2008 from JP Morgan, where he was head of Global Securitized Products and a member of the management committee of the investment bank. Prior to his tenure at JP Morgan, Mr. Nierenberg held a range of senior leadership positions during fourteen years with Bear Stearns, including head of interest rate and foreign exchange trading operations, co-head of structured products and co-head of mortgage-backed securities trading. From 2006 to 2008, he was a Member of Bear Stearns’s Board of Directors. Mr. Nierenberg spent seven years at Lehman Brothers prior to joining Bear Stearns and was instrumental in building the company’s adjustable rate mortgage business.

CEO Compensation
  • Insufficient data for Michael to compare compensation growth.
  • Michael's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the New Residential Investment management team in years:

3.6
Average Tenure
46
Average Age
  • The tenure for the New Residential Investment management team is about average.
Management Team

Michael Nierenberg

TITLE
Chairman
AGE
55
TENURE
5.4 yrs

Nick Santoro

TITLE
CFO & Treasurer
AGE
50
TENURE
3.6 yrs

David Schneider

TITLE
Chief Accounting Officer
AGE
36
TENURE
1.3 yrs

Mandy Cheuk

TITLE
Head of Investor Relations

Cameron MacDougall

TITLE
Secretary
AGE
42
Board of Directors Tenure

Average tenure and age of the New Residential Investment board of directors in years:

5.8
Average Tenure
62
Average Age
  • The tenure for the New Residential Investment board of directors is about average.
Board of Directors

Michael Nierenberg

TITLE
Chairman
AGE
55
TENURE
2.9 yrs

Kevin Finnerty

TITLE
Director
COMPENSATION
$200K
AGE
63
TENURE
6 yrs

Alan Tyson

TITLE
Director
COMPENSATION
$200K
AGE
61
TENURE
6 yrs

Douglas Jacobs

TITLE
Director
COMPENSATION
$240K
AGE
70
TENURE
5.8 yrs

David Saltzman

TITLE
Independent Director
COMPENSATION
$200K
AGE
56
TENURE
6 yrs

Andrew Sloves

TITLE
Director
COMPENSATION
$200K
AGE
54
TENURE
2.8 yrs

Bob McGinnis

TITLE
Director
COMPENSATION
$200K
AGE
65
TENURE
2.3 yrs

Pam Lenehan

TITLE
Independent Director
AGE
66
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by New Residential Investment insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Feb 19 Buy Michael Nierenberg Individual 22. Feb 19 22. Feb 19 60,000 $16.50 $990,000
X
Management checks
We assess New Residential Investment's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. New Residential Investment has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NRZ News

Simply Wall St News

Is It Too Late To Consider Buying New Residential Investment Corp. (NYSE:NRZ)?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $17.17 at one point, and dropping to the lows of $15.23. … A question to answer is whether New Residential Investment's current trading price of $16.66 reflective of the actual value of the? … Let’s take a look at New Residential Investment’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What Are Analysts Saying About The Future Of New Residential Investment Corp.'s (NYSE:NRZ)?

The most recent earnings update New Residential Investment Corp.'s (NYSE:NRZ) released in December 2018a

Simply Wall St -

Did New Residential Investment Corp. (NYSE:NRZ) Insiders Buy Up More Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in New Residential Investment Corp. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In any event it's generally a positive if insiders are buying shares at around the current price

Simply Wall St -

Should You Think About Buying New Residential Investment Corp. (NYSE:NRZ) Now?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $18.56 at one point, and dropping to the lows of $14.98. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether New Residential Investment's current trading price of $14.98 reflective of the actual value of the?

Simply Wall St -

Why New Residential Investment Corp (NYSE:NRZ) Could Be A Buy

New Residential Investment Corp (NYSE:NRZ), a mortgage reits company based in United States,. … Let’s take a look at New Residential Investment’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change … View our latest analysis for New Residential Investment

Simply Wall St -

Is It Too Late To Buy New Residential Investment Corp (NYSE:NRZ)?

New Residential Investment Corp (NYSE:NRZ), a mortgage reits company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … Though in the case of New Residential Investment, it is expected to deliver a highly negative earnings growth in the upcoming, which doesn’t help build up its investment thesis.

Simply Wall St -

Should New Residential Investment Corp (NYSE:NRZ) Be Part Of Your Portfolio?

New Residential Investment Corp (NYSE:NRZ) has returned to shareholders over the past 5 years, an average dividend yield of 12.00% annually. … Check out our latest analysis for New Residential Investment Here's how I find good dividend stocks When researching a dividend stock, I always follow the following screening criteria: Is it the top 25% annual dividend yield payer? … Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

Simply Wall St -

What’s Installed For New Residential Investment Corp (NYSE:NRZ)?

New Residential Investment is a REIT industry laggard in terms of its future growth outlook, and is trading relatively in-line with its peers. … If your initial investment thesis is around the growth prospects of New Residential Investment, there are other REIT companies that are expected to deliver higher growth in the future, and perhaps trading at a discount to the industry average. … If growth and mispricing are important aspects for your investment thesis, there may be better investments in the real estate sector.

Simply Wall St -

Is New Residential Investment Corp (NYSE:NRZ) Undervalued?

New Residential Investment Corp (NYSE:NRZ), a mortgage reits company based in United States, saw its share price hover around a small range of $16.53 to $18.02 over the last few weeks. … Great news for investors – New Residential Investment is still trading at a fairly cheap price. … Another thing to keep in mind is that New Residential Investment’s share price is quite stable relative to the rest of the market, as indicated by its low beta.

Simply Wall St -

Is New Residential Investment Corp's (NRZ) ROE Of 23.62% Sustainable?

See our latest analysis for NRZ Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:NRZ Last Perf Nov 24th 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient NRZ is with its cost management.

Simply Wall St -

NRZ Company Info

Description

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 Originations, Residential Securities and Loans, and Consumer Loans segments. 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. It also invests in real estate securities and residential mortgage loans, as well as in consumer loans, including unsecured and homeowner loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2011 and is based in New York, New York.

Details
Name: New Residential Investment Corp.
NRZ
Exchange: NYSE
Founded: 2011
$6,908,595,528
415,429,677
Website: http://www.newresi.com
Address: New Residential Investment Corp.
1345 Avenue Of The Americas,
45th Floor,
New York,
New York, 10105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NRZ Common Stock New York Stock Exchange US USD 02. May 2013
DB 14N1 Common Stock Deutsche Boerse AG DE EUR 02. May 2013
LSE 0K76 Common Stock London Stock Exchange GB USD 02. May 2013
Number of employees
Current staff
Staff numbers
2,359
New Residential Investment employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 00:47
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.