Annaly Capital Management NLY
Annaly Capital Management is a mortgage real estate investment trust (mREIT) that invests in residential and commercial mortgage-backed securities, funding itself with short-term debt to capture the net interest margin. Annaly Capital Management is an mREIT with extreme leverage (Debt/Equity 737.54) and a 14.56% dividend that depends on a net interest margin compressed by rates at 5.17%. Revenue growth of 479.40% is unsustainable and financial health is fragile, though a P/B of 1.02 and ROE of 19.57% offer some appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Annaly Capital Management is a mortgage real estate investment trust (mREIT) that invests in residential and commercial mortgage-backed securities, funding itself with short-term debt to capture the net interest margin. Annaly Capital Management is an mREIT with extreme leverage (Debt/Equity 737.54) and a 14.56% dividend that depends on a net interest margin compressed by rates at 5.17%. Revenue growth of 479.40% is unsustainable and financial health is fragile, though a P/B of 1.02 and ROE of 19.57% offer some appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 2.8 |
| Quality / Moat | 5.0 |
| Valuation | 7.5 |
| Growth | 9.5 |
| Dividend | 8.5 |
| Momentum | 7.7 |
| Risk & Context | 4.2 |
OVERALL SCORE: 6.0/10
Context and risks
mREIT with extreme leverage (Debt/Equity 737.54) and short-term funding: the rise in 10-year Treasury rates to 5.17% compresses the net interest margin and makes debt rollover more expensive. Additionally, the fall in gold and risk aversion in tech do not directly affect it, but the high-rate environment is the dominant risk for its model.
News considered in the analysis
- Why Annaly Capital Management (NLY) Dipped More Than Broader Market Today — Caída relativa al mercado, refleja sensibilidad a tipos y compresión de márgenes, parcialmente descontada.
- Here's How Much Income $25,000 Invested in This 13%-Yielding Dividend Stock Generates. History Says Don't Count on It Staying That Way. — Advierte sobre la sostenibilidad del dividendo en un ciclo de tipos, riesgo ya conocido por el mercado.
- Is Annaly Capital Management (NLY) A Bargain On Its Fresh Dividend Signal? — Análisis especulativo sobre el dividendo, sin información nueva material.
- Annaly Capital Management (NLY) Stock Looks Undervalued On Its Earnings Power — Señala posible infravaloración por capacidad de ganancia, visión optimista sin catalizador concreto.
- Is Annaly Capital's 13% Dividend Safe Through a Full Rate Cycle? — Cuestiona la seguridad del dividendo ante un ciclo completo de tipos, riesgo relevante para el negocio.
Verdict: Hold or reduce: the dividend is attractive but the risk of margin compression from high rates and extreme leverage make the position vulnerable.
Main risk: Extreme leverage (Debt/Equity 737.54) and short-term funding: a sustained rise in rates compresses the net interest margin and could force dividend cuts or liquidity problems.
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