New Residential Investment (NYSE:NRZ) - Share price, News & Analysis

NRZ fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	2/6
Dividends	4/6

NRZ Stock Overview

New Residential Investment Corp. operates as a real estate investment trust in the United States.

Rewards

Trading at 33.4% below our estimate of its fair value

Earnings grew by 162.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 30.5% per year for the next 3 years

Has a high level of debt

Unstable dividend track record

New Residential Investment Competitors

Annaly Capital Management

NYSE:NLY

US$9.9b

Starwood Property Trust

NYSE:STWD

US$7.1b

AGNC Investment

NasdaqGS:AGNC

US$6.1b

Blackstone Mortgage Trust

NYSE:BXMT

US$5.0b

Price History & Performance

Summary of all time highs, changes and price drops for New Residential Investment
Historical stock prices
Current Share Price	US$10.63
52 Week High	US$11.81
52 Week Low	US$8.98
Beta	1.66
1 Month Change	-0.75%
3 Month Change	1.24%
1 Year Change	3.71%
3 Year Change	-35.65%
5 Year Change	-35.77%
Change since IPO	-21.38%

Recent News & Updates

May 05

New Residential: I Am Buying This Fat 8.8% Yield For Passive Income

New Residential out-earned its dividend again by a high margin in 1Q-22. The trust’s book value was up 9.8% to $12.56 per share. MSR portfolio provides a hedge against inflation. Despite great dividend coverage and book value growth, the stock trades at a 10% discount to book value.

Shareholder Returns

	NRZ	US Mortgage REITs	US Market
7D	-2.1%	0.06%	0.1%
1Y	3.7%	-21.9%	-12.7%

Return vs Industry: NRZ exceeded the US Mortgage REITs industry which returned -21.9% over the past year.

Return vs Market: NRZ exceeded the US Market which returned -12.7% over the past year.

Price Volatility

Is NRZ's price volatile compared to industry and market?
NRZ volatility
NRZ Average Weekly Movement	5.2%
Mortgage REITs Industry Average Movement	4.4%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: NRZ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NRZ's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	11,323	Michael Nierenberg	https://www.newresi.com

New Residential Investment Corp. operates as a real estate investment trust in the United States. It operates through Origination, Servicing, MSR Related Investments, Residential Securities, Properties and Loans, Consumer Loans, Mortgage Loans, and Corporate segments. The company invests in mortgage servicing rights, mortgage origination and servicing companies, residential mortgage-backed securities, properties and loans, consumer loans, and other opportunistic investments.

New Residential Investment Fundamentals Summary

How do New Residential Investment's earnings and revenue compare to its market cap?
NRZ fundamental statistics
Market Cap	US$5.02b
Earnings (TTM)	US$1.09b
Revenue (TTM)	US$3.64b

4.6x

P/E Ratio

1.4x

P/S Ratio

Is NRZ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NRZ income statement (TTM)
Revenue	US$3.64b
Cost of Revenue	US$0
Gross Profit	US$3.64b
Other Expenses	US$2.55b
Earnings	US$1.09b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.33
Gross Margin	100.00%
Net Profit Margin	29.93%
Debt/Equity Ratio	378.5%

How did NRZ perform over the long term?

See historical performance and comparison

Dividends

9.4%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

33.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NRZ ($10.63) is trading below our estimate of fair value ($15.96)

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 (4.6x) compared to the US Mortgage REITs industry average (11.6x).

PE vs Market: NRZ is good value based on its PE Ratio (4.6x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: NRZ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: NRZ's PB Ratio (0.8x) 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 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-30.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRZ's earnings are forecast to decline over the next 3 years (-30.5% per year).

Earnings vs Market: NRZ's earnings are forecast to decline over the next 3 years (-30.5% per year).

High Growth Earnings: NRZ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NRZ's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: NRZ's revenue is forecast to decline over the next 3 years (-1.7% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if NRZ's Return on Equity is forecast to be high in 3 years time

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-23.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NRZ has high quality earnings.

Growing Profit Margin: NRZ's current net profit margins (29.9%) are higher than last year (16.9%).

Past Earnings Growth Analysis

Earnings Trend: NRZ's earnings have declined by 23.7% per year over the past 5 years.

Accelerating Growth: NRZ's earnings growth over the past year (162.4%) exceeds its 5-year average (-23.7% per year).

Earnings vs Industry: NRZ earnings growth over the past year (162.4%) exceeded the Mortgage REITs industry 5.4%.

Return on Equity

High ROE: NRZ's Return on Equity (16.6%) is considered low.

Financial Health

How is New Residential Investment's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NRZ's short term assets ($18.3B) exceed its short term liabilities ($12.0B).

Long Term Liabilities: NRZ's short term assets ($18.3B) do not cover its long term liabilities ($18.7B).

Debt to Equity History and Analysis

Debt Level: NRZ's net debt to equity ratio (347.9%) is considered high.

Reducing Debt: NRZ's debt to equity ratio has increased from 322.3% to 378.5% over the past 5 years.

Debt Coverage: NRZ's debt is well covered by operating cash flow (26.7%).

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?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

9.41%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NRZ's dividend (9.41%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: NRZ's dividend (9.41%) is in the top 25% of dividend payers in the US market (4.09%)

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 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.5%), NRZ's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (6.4%), NRZ's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

5.9yrs

Average board tenure

CEO

Michael Nierenberg (58 yo)

8.5yrs

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 (5.9 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/20 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31