Mfa Financial Intrinsic Value – MFA Financial Reports Missed Expectations for Non-GAAP EPS and Net Interest Income
May 5, 2023
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The company reported Non-GAAP earnings per share of $0.30, missing analyst estimates by $0.02.
Additionally, the company’s net interest income of $39.37 million was short of the estimated amount by $15.11 million. MFA ($NYSE:MFA) Financial is a mortgage real estate investment trust that focuses on acquiring and managing residential mortgage-backed securities backed by adjustable and fixed rate mortgages, as well as agency and non-agency mortgage-backed securities. It primarily invests in residential mortgage pass-through securities, collateralized mortgage obligations and other mortgage-related investments. The company provides investors with a reliable source of income and capital appreciation by investing in mortgage-related investments that are considered lower risk.
Earnings
MFA FINANCIAL recently released its financial reports for the fourth quarter of FY2022, ending December 31 2022. The reports indicated that the company earned 8.22M USD in total revenue, a 0.0% decrease from the previous year. In the last three years, MFA FINANCIAL’s total revenue has remained unchanged at 8.22M USD. Furthermore, MFA FINANCIAL missed expectations for both non-GAAP Earnings Per Share (EPS) and net interest income.
This is the first time in recent years that the company has not met its financial expectations, signaling a potential shift in its growth trajectory. The decrease in total revenue and missed financial expectations indicate that MFA FINANCIAL is not performing as well as it previously did. It is important to monitor how the company responds in the coming quarters to see if it can turn its performance around.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mfa Financial. More…
| Total Revenues | Net Income | Net Margin |
| -83.91 | -265.08 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mfa Financial. More…
| Operations | Investing | Financing |
| 366.08 | -1.13k | 850.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mfa Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.11k | 7.12k | 19.53 |
Key Ratios Snapshot
Some of the financial key ratios for Mfa Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Market Price
On Thursday, MFA FINANCIAL‘s stock opened at $10.2 and closed at $10.3, a 1.2% rise from its last closing price of 10.2. The company released a report detailing its non-GAAP earnings per share (EPS) and net interest income, which both missed market expectations. These figures fell short of what analysts had projected, resulting in a slight dip in stock price.
Despite the slight dip, MFA FINANCIAL’s stock still closed higher than its opening price and remained relatively stable throughout the day. This indicates that the market is still confident in the company and that investors are willing to overlook this shortfall in expectation. Live Quote…
Analysis – Mfa Financial Intrinsic Value
At GoodWhale, we recently examined the financials of MFA FINANCIAL. Our proprietary Valuation Line has concluded that the intrinsic value of one MFA FINANCIAL share is $14.5. However, currently the stock is traded at $10.3 – a difference of 29.1%. This means that the stock is currently undervalued, and we recommend that investors look into buying a stake in it. More…
Peers
The company’s primary objective is to generate attractive risk-adjusted returns for its shareholders, primarily through dividends and capital appreciation. MFA Financial Inc competes with other mortgage REITs such as Ellington Residential Mortgage REIT, AG Mortgage Investment Trust Inc, and New York Mortgage Trust Inc.
– Ellington Residential Mortgage REIT ($NYSE:EARN)
Ellington Residential Mortgage REIT is a mortgage real estate investment trust that focuses on acquiring, investing in, and managing residential mortgage- and real estate-related assets. The company has a market cap of $83.32 million as of 2022. Ellington Residential Mortgage REIT is headquartered in Greenwich, Connecticut.
– AG Mortgage Investment Trust Inc ($NYSE:MITT)
MFA Mortgage Investment Trust Inc is a real estate investment trust, which focuses on investing in, financing and managing residential mortgage assets in the United States. As of December 31, 2020, the Company’s investment portfolio totaled $4.16 billion. The Company is externally managed and advised by MFA Financial, Inc.
– New York Mortgage Trust Inc ($NASDAQ:NYMT)
New York Mortgage Trust Inc is a real estate investment trust that focuses on acquiring and managing residential mortgage loans. As of December 31, 2020, the Company’s investment portfolio included $5.6 billion of residential mortgage loans. The Company operates in two segments: Residential and Commercial. The Residential segment invests in and manages a portfolio of residential mortgage loans, including first mortgage loans, subordinate loans, and other real estate-related assets. The Commercial segment focuses on commercial real estate loans, including first mortgage loans, mezzanine loans, and other commercial real estate-related assets.
Summary
MFA Financial is a real estate investment trust that invests in residential mortgage assets. Investors should be cautious in their assessment of the company’s financial performance as the numbers indicate an overall decline in earnings and income year-over-year. It is important to analyze the company’s cash flows, balance sheet, and other indicators to determine whether the stock is a good investment.
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