Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- . The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- NLY's revenue growth trails the industry average of 18.7%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to -$1,305.68 million or 49.32% when compared to the same quarter last year. Despite an increase in cash flow, ANNALY CAPITAL MANAGEMENT's cash flow growth rate is still lower than the industry average growth rate of 60.23%.
- The gross profit margin for ANNALY CAPITAL MANAGEMENT is currently very high, coming in at 93.60%. Regardless of NLY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NLY's net profit margin of -9.00% significantly underperformed when compared to the industry average.
- ANNALY CAPITAL MANAGEMENT has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ANNALY CAPITAL MANAGEMENT reported lower earnings of $0.49 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($1.81 versus $0.49).
Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. The company has a P/E ratio of 113.9, above the average real estate industry P/E ratio of 52.5 and above the S&P 500 P/E ratio of 17.7. Annaly Capital Management has a market cap of $16.37 billion and is part of the
industry. Shares are up 7% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.