(MFA) MFA Financial - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 965m USD | Total Return: 18.3% in 12m
Avg Turnover: 12.1M
EPS Trend: 7.3%
Qual. Beats: 1
Rev. Trend: 96.4%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
MFA Financial, Inc. is a New York-based real estate investment trust (REIT) focused on the acquisition and management of residential mortgage assets. The company operates through two primary segments: Mortgage-Related Assets, which manages a portfolio of residential whole loans and mortgage-backed securities, and Lima One, a specialized platform for originating and servicing business-purpose loans for real estate investors.
The company utilizes a diversified investment strategy that includes non-qualified mortgages, rehabilitation loans, and credit risk transfer securities. As a mortgage REIT, MFA relies on the spread between interest income earned on its mortgage assets and the cost of funding those assets through securitizations and repurchase agreements. This business model is highly sensitive to interest rate fluctuations and the steepness of the yield curve.
To maintain its status as a REIT, the company is legally required to distribute at least 90% of its taxable income to shareholders, effectively exempting it from most federal corporate income taxes. For a deeper look at how these distributions align with current market valuations, you may find ValueRays analysis useful. MFA continues to focus on credit-sensitive residential loans rather than purely agency-backed securities to capture higher yields in the residential housing sector.
- Net interest margin expansion driven by business purpose loan origination volume
- Securitization market liquidity influences cost of long term non-recourse financing
- Residential credit performance determines valuation of non-performing and re-performing loans
- Federal Reserve interest rate policy impacts repurchase agreement borrowing costs
- Mortgage servicing rights valuation fluctuates with residential mortgage prepayment speed trends
| Net Income: 134.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.08 > 1.0 |
| NWC/Revenue: 57.66% < 20% (prev 3.34k%; Δ -3.29k% < -1%) |
| CFO/TA 0.01 > 3% & CFO 161.9m > Net Income 134.6m |
| Net Debt (6.29b) to EBITDA (271.4m): 23.18 < 3 |
| Current Ratio: 4.57 > 1.5 & < 3 |
| Outstanding Shares: last quarter (105.3m) vs 12m ago -0.07% < -2% |
| Gross Margin: 61.59% > 18% (prev 0.44%; Δ 6.11k% > 0.5%) |
| Asset Turnover: 5.79% > 50% (prev 2.37%; Δ 3.41% > 0%) |
| Interest Coverage Ratio: 0.51 > 6 (EBITDA TTM 271.4m / Interest Expense TTM 523.7m) |
| A: 0.03 (Total Current Assets 528.7m - Total Current Liabilities 115.8m) / Total Assets 13.2b |
| B: -0.15 (Retained Earnings -1.94b / Total Assets 13.2b) |
| C: 0.02 (EBIT TTM 269.7m / Avg Total Assets 12.4b) |
| D: -0.17 (Book Value of Equity -1.94b / Total Liabilities 11.5b) |
| Altman-Z'' = -0.31 = B |
| DSRI: 0.01 (Receivables 117.8m/8.79b, Revenue 716.0m/273.5m) |
| GMI: 0.72 (GM 61.59% / 44.42%) |
| AQI: 5.28 (AQ_t 0.96 / AQ_t-1 0.18) |
| SGI: 2.62 (Revenue 716.0m / 273.5m) |
| TATA: -0.00 (NI 134.6m - CFO 161.9m) / TA 13.2b) |
| Beneish M = -0.40 (Cap -4..+1) = D |
As of May 28, 2026, the stock is trading at USD 9.60 with a total of 889,140 shares traded.
Over the past week, the price has changed by +2.89%,
over one month by -7.25%,
over three months by -1.36% and
over the past year by +18.34%.
MFA Financial has received a consensus analysts rating of 3.57. Therefore, it is recommended to hold MFA.
- StrongBuy: 1
- Buy: 2
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 15 | 56.3% |
P/E Trailing = 10.7386
P/E Forward = 6.9493
P/S = 3.3483
P/B = 0.5396
P/EG = 2.4813
Revenue TTM = 716.0m USD
EBIT TTM = 269.7m USD
EBITDA TTM = 271.4m USD
Long Term Debt = 6.48b USD (from longTermDebt, last quarter)
Short Term Debt = 7.38m USD (from shortTermDebt, last fiscal year)
Debt = 6.51b USD (from shortLongTermDebtTotal, last quarter) + Leases 16.2m
Net Debt = 6.29b USD (calculated: Debt 6.51b - CCE 221.6m)
Enterprise Value = 7.26b USD (964.8m + Debt 6.51b - CCE 221.6m)
Interest Coverage Ratio = 0.51 (Ebit TTM 269.7m / Interest Expense TTM 523.7m)
EV/FCF = 44.82x (Enterprise Value 7.26b / FCF TTM 161.9m)
FCF Yield = 2.23% (FCF TTM 161.9m / Enterprise Value 7.26b)
FCF Margin = 22.61% (FCF TTM 161.9m / Revenue TTM 716.0m)
Net Margin = 18.80% (Net Income TTM 134.6m / Revenue TTM 716.0m)
Gross Margin = 61.59% ((Revenue TTM 716.0m - Cost of Revenue TTM 275.0m) / Revenue TTM)
Gross Margin QoQ = none% (prev 91.61%)
Tobins Q-Ratio = 0.55 (Enterprise Value 7.26b / Total Assets 13.2b)
Interest Expense / Debt = 8.04% (Interest Expense 523.7m / Debt 6.51b)
Taxrate = 21.0% (US default 21%)
NOPAT = 213.0m (EBIT 269.7m * (1 - 21.00%))
Current Ratio = 4.57 (Total Current Assets 528.7m / Total Current Liabilities 115.8m)
Debt / Equity = 3.66 (Debt 6.51b / totalStockholderEquity, last quarter 1.78b)
Debt / EBITDA = 23.18 (Net Debt 6.29b / EBITDA 271.4m)
Debt / FCF = 38.86 (Net Debt 6.29b / FCF TTM 161.9m)
Total Stockholder Equity = 1.81b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.09% (Net Income 134.6m / Total Assets 13.2b)
RoE = 3.58% (Net Income TTM 134.6m / Total Stockholder Equity 3.76b)
RoCE = 2.63% (EBIT 269.7m / Capital Employed (Equity 3.76b + L.T.Debt 6.48b))
RoIC = 1.62% (NOPAT 213.0m / Invested Capital 13.1b)
WACC = 6.63% (E(964.8m)/V(7.48b) * Re(8.47%) + D(6.51b)/V(7.48b) * Rd(8.04%) * (1-Tc(0.21)))
Discount Rate = 8.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -11.94 | Cagr: -0.99%
[DCF] Terminal Value 77.97% ; FCFF base≈150.0m ; Y1≈171.9m ; Y5≈253.0m
[DCF] Fair Price = N/A (negative equity: EV 3.81b - Net Debt 6.29b = -2.48b; debt exceeds intrinsic value)
EPS Correlation: 7.32 | EPS CAGR: 3.37% | SUE: 1.03 | # QB: 1
Revenue Correlation: 96.41 | Revenue CAGR: 85.92% | SUE: 0.79 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.33 | Chg30d=+0.15% | Revisions=+0% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.34 | Chg30d=-3.77% | Revisions=+0% | Analysts=2
EPS current Year (2026-12-31): EPS=1.34 | Chg30d=-0.75% | Revisions=+0% | GrowthEPS=+34.5% | GrowthRev=+4.3%
EPS next Year (2027-12-31): EPS=1.49 | Chg30d=-0.65% | Revisions=-20% | GrowthEPS=+11.0% | GrowthRev=+9.5%
[Analyst] Revisions Ratio: -20%