NYSE:WMC

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Western Asset Mortgage Capital

Executive Summary

Western Asset Mortgage Capital Corporation operates as a real estate investment trust in the United States.


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Western Asset Mortgage Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WMC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

WMC

-2.4%

US Mortgage REITs

-0.7%

US Market


1 Year Return

-78.8%

WMC

-43.3%

US Mortgage REITs

5.3%

US Market

Return vs Industry: WMC underperformed the US Mortgage REITs industry which returned -43.1% over the past year.

Return vs Market: WMC underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

WMCIndustryMarket
7 Day-4.9%-2.4%-0.7%
30 Day-27.1%-7.9%4.6%
90 Day-24.2%11.2%14.0%
1 Year-77.5%-78.8%-36.7%-43.3%7.6%5.3%
3 Year-71.2%-78.8%-26.2%-47.3%34.9%26.1%
5 Year-73.8%-85.7%-0.2%-43.1%62.3%44.7%

Price Volatility Vs. Market

How volatile is Western Asset Mortgage Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Western Asset Mortgage Capital undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMC ($2.13) is trading below our estimate of fair value ($8.61)

Significantly Below Fair Value: WMC is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WMC's PB Ratio (0.6x) is in line with the US Mortgage REITs industry average.


Next Steps

Future Growth

How is Western Asset Mortgage Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

98.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: WMC's revenue (109.7% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: WMC's revenue (109.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WMC's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Western Asset Mortgage Capital performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMC is currently unprofitable.

Growing Profit Margin: WMC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WMC is unprofitable, and losses have increased over the past 5 years at a rate of -19.8% per year.

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

Earnings vs Industry: WMC is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-42.8%).


Return on Equity

High ROE: WMC has a negative Return on Equity (-186.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Western Asset Mortgage Capital's financial position?


Financial Position Analysis

Short Term Liabilities: WMC's short term assets ($2.4B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: WMC's short term assets ($2.4B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: WMC's debt to equity ratio (1624.1%) is considered high.

Reducing Debt: WMC's debt to equity ratio has increased from 655.3% to 1624.1% over the past 5 years.

Debt Coverage: WMC's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

What is Western Asset Mortgage Capital current dividend yield, its reliability and sustainability?

5.45%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WMC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WMC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WMC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WMC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WMC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WMC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jennifer Murphy (55yo)

4.08yrs

Tenure

Ms. Jennifer Williams Murphy, CFA has been the Chief Executive Officer and President of Western Asset Mortgage Capital Corporation since June 1, 2016 and serves as its Director. Ms. Murphy serves as Direct ...


Leadership Team

NamePositionTenureCompensationOwnership
James Hirschmann
Chairman of the Board11yrsno data0.14% $155.3k
Jennifer Murphy
President4.08yrsno data0.29% $330.1k
Lisa Meyer
CFO & Treasurer4.67yrsUS$875.01k0.028% $31.5k
Elliott Neumayer
Chief Operating Officer4.75yrsno data0.013% $14.9k
Harris Trifon
Chief Investment Officer1.17yrsno data0.038% $42.8k
Sean Johnson
Deputy Chief Investment Officer1.17yrsno data0.021% $23.6k
Larry Clark
Investor Relations Contactno datano datano data
Charles Ruys De Perez
Secretaryno datano datano data
James Flick
Director of Client Service & Marketing - Western Asset Management Companyno datano datano data
Adam Wright
Assistant Secretaryno datano datano data

4.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: WMC's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Hirschmann
Chairman of the Board11yrsno data0.14% $155.3k
Jennifer Murphy
President4.08yrsno data0.29% $330.1k
Edward Fox
Independent Director8.17yrsUS$150.00k0.12% $131.8k
Ranjit Kripalani
Independent Director5.67yrsUS$150.00k0.096% $109.2k
M. Mitchell
Lead Independent Director5.75yrsUS$185.00k0.10% $119.1k
Richard Roll
Independent Director8.17yrsUS$150.00k0.10% $119.1k
Lisa Quateman
Independent Director0.083yrno datano data

5.8yrs

Average Tenure

65yo

Average Age

Experienced Board: WMC's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WMC 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

Western Asset Mortgage Capital Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Western Asset Mortgage Capital Corporation
  • Ticker: WMC
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$113.793m
  • Shares outstanding: 53.42m
  • Website: https://www.westernassetmcc.com

Number of Employees


Location

  • Western Asset Mortgage Capital Corporation
  • 385 East Colorado Boulevard
  • Pasadena
  • California
  • 91101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMCNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2012
488DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2012

Biography

Western Asset Mortgage Capital Corporation operates as a real estate investment trust in the United States. It focuses on acquiring, investing in, financing, and managing a portfolio of agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities, residential whole-loans, residential bridge loans, securitized commercial loans, and other financial assets. 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 2009 and is based in Pasadena, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 00:02
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
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.