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New York Mortgage Trust (NYMT)
NASDAQ:NYMT
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New York Mortgage
(NASDAQ:NYMT)
61Neutral
Positive Factors
Analyst Recommendation
The stock is valued in the bottom tier of mortgage REITs, but analysts maintain a buy rating due to a high-dividend yield and expected earnings recovery in 2025.
Dividend Sustainability
The dividend, currently yielding 12.4%, appears sustainable based on increasing recurring earnings and a positive 2025 outlook.
Strategic Positioning
NYMT is positioned well to take advantage of opportunities due to its combination of cash, unencumbered assets, and under-levered assets.
Negative Factors
Asset Unwinding Impact
NYMT has been unwinding its positions in multi-family assets since 2022, which has generated losses.
Dividend Coverage Concerns
The quarterly EPS estimates for 2025 imply that the dividend will not be covered until the third quarter of 2025.
Recent Financial Losses
NYMT reported a net loss of ($0.46)/share in 4Q24 due to unrealized securities losses caused by interest rate changes.
New York Mortgage (NYMT) vs. S&P 500 (SPY)
Market Cap
$588.69M
Dividend Yield12.31%
Average Volume (3M)820.35K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth33.72%
EPS Growth-15.41%
CountryUS
Employees70
SectorReal Estate
Sector Strength73
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-1.14
Shares Outstanding90,567,444
10 Day Avg. Volume683,744
30 Day Avg. Volume820,347
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.09
Price to Cash Flow (P/CF)5.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.38Price Target Upside13.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
New York Mortgage Business Overview & Revenue Model
Company DescriptionNew York Mortgage Trust, Inc. (NYMT) is a real estate investment trust (REIT) that specializes in investing in and managing a portfolio of mortgage-related and financial assets. The company's primary focus is on residential mortgage loans, multi-family commercial mortgage-backed securities, and other mortgage-related assets. NYMT operates within the financial services sector, providing investors with opportunities to invest in income-generating real estate assets while managing risk through diversified and strategic asset allocation.
How the Company Makes MoneyNew York Mortgage Trust, Inc. makes money primarily through the interest income generated from its portfolio of mortgage and financial assets. The company invests in a variety of mortgage-related assets, including residential mortgage loans and securities, multi-family commercial mortgage-backed securities, and other financial assets. NYMT earns interest income from these investments, which forms the bulk of its revenue. Additionally, the company may engage in strategic partnerships or financial arrangements to optimize its portfolio performance and maximize returns. The revenue model is heavily reliant on the performance of the mortgage and real estate markets, interest rate fluctuations, and the company's ability to effectively manage its investment portfolio.
New York Mortgage Financial Statement Overview
Summary
NYMT's financial performance is mixed. The income statement shows declining revenues and persistent net losses, impacting profitability. However, the balance sheet is strong with no debt, and the cash flow, although reduced, remains positive. The company must address profitability to enhance investor confidence.Income Statement
New York Mortgage has experienced significant volatility in revenue and profit margins over the years. Recent data shows a decline in Total Revenue from $210 million in 2023 to $83.855 million in 2024, a significant drop. Gross Profit Margin remains stable at 100% for 2024, but Net Profit Margin is negative due to a net loss, indicating profitability challenges. EBIT and EBITDA margins are strong, but net losses raise concerns about overall profitability and growth trajectory.35
Negative
Balance Sheet
The company's balance sheet shows a strong equity base, with Stockholders' Equity at $1.398 billion in 2024. With Total Debt at $0, the Debt-to-Equity Ratio indicates no leverage risk, which is positive. However, the Return on Equity is negative due to net losses, which impacts shareholder returns. The Equity Ratio is robust at approximately 15.2%, reflecting stable financial structure despite profitability challenges.60
Neutral
Cash Flow
Operating Cash Flow decreased from $29.953 million in 2023 to $14.071 million in 2024, indicating reduced cash generation from operations. Free Cash Flow remains positive but has also decreased. The Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios are impacted by negative net income but show the company's ability to generate operational cash despite losses. Cash reserves remain strong, helping to mitigate risks.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 83.86M | 210.00M | 8.46M | 266.51M | -207.48M | Gross Profit |
| 83.86M | 97.81M | -375.19M | 237.66M | -219.81M | EBIT |
| 35.18M | 48.25M | -311.30M | 195.66M | -287.53M | EBITDA |
| 254.50M | 206.44M | 0.00 | 251.86M | 0.00 | Net Income Common Stockholders |
| -62.03M | -48.66M | -340.65M | 193.20M | -288.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.00B | 2.20B | 409.90M | 490.45M | 1.02B | Total Assets |
| 9.22B | 7.40B | 6.24B | 5.64B | 4.66B | Total Debt |
| 3.56B | 5.28B | 2.64B | 2.51B | 1.80B | Net Debt |
| 3.39B | 2.62B | 2.40B | 2.22B | 1.51B | Total Liabilities |
| 7.81B | 5.77B | 4.38B | 2.51B | 1.80B | Stockholders Equity |
| 1.40B | 1.58B | 1.77B | 2.34B | 2.30B |
| Cash Flow | Free Cash Flow | |||
| 4.60M | 29.95M | -117.59M | -347.93M | 110.55M | Operating Cash Flow |
| 14.07M | 29.95M | 91.78M | 138.91M | 110.75M | Investing Cash Flow |
| -2.24B | -1.22B | -508.77M | -133.03M | 2.12B | Financing Cash Flow |
| 2.23B | 1.14B | 460.07M | 27.49M | -2.05B |
New York Mortgage Technical Analysis
Positive
6.49
Price Trends
6.25
Positive
5.98
Positive
5.81
Positive
Market Momentum
0.04
Positive
51.44
Neutral
-4.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NYMT, the sentiment is Positive. The current price of 6.49 is below the 20-day moving average (MA) of 6.56, above the 50-day MA of 6.25, and above the 200-day MA of 5.81, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of -4.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NYMT.
New York Mortgage Risk Analysis
New York Mortgage disclosed 73 risk factors in its most recent earnings report. New York Mortgage reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New York Mortgage Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.72B | 10.24 | 9.58% | 15.13% | 384.69% | 963700.00% | |
68 Neutral | $11.95B | 12.75 | 8.40% | 12.58% | 13.33% | ― | |
63 Neutral | $1.06B | 11.91 | 6.92% | 10.84% | 7.13% | 64.82% | |
62 Neutral | $1.37B | 5.57 | 13.74% | 13.63% | 28.33% | ― | |
61 Neutral | $588.69M | ― | -4.17% | 12.31% | 33.72% | -15.41% | |
61 Neutral | $4.70B | 17.65 | -3.00% | 11.43% | 5.99% | -19.07% | |
60 Neutral | $1.08B | 12.92 | 6.35% | 13.26% | 26.34% | 79.07% |
* Real Estate Sector Average
Performance Comparison
NYMT
New York Mortgage
6.49
0.21
3.34%
AGNC
AGNC Investment
9.58
1.21
14.46%
NLY
Annaly Capital
20.31
3.45
20.46%
CIM
Chimera Investment
13.10
1.02
8.44%
MFA
MFA Financial
10.26
0.54
5.56%
TWO
Two Harbors
13.36
2.12
18.86%
New York Mortgage Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 11.90% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in the portfolio, increases in adjusted interest income, and successful securitization strategies. However, the call also reflected challenges, including undepreciated losses per share, unrealized losses due to higher benchmark rates, and a decrease in book value. Despite these challenges, the company is optimistic about future earnings and dividend alignment.Highlights
Record Portfolio Growth
The company's portfolio grew by 44% relative to the same time in 2023, driven by $4.1 billion of acquisitions, primarily liquid agency bonds and higher spread bridge loans.
Increase in Adjusted Interest Income
Adjusted interest income rose 60% year over year, contributing $0.36 to EPS in Q4, a $0.10 improvement from a year earlier.
Successful Securitization and Funding Strategies
In 2024, the company issued six securitizations and kicked off 2025 with a detailed bridge securitization. An $83 million baby bond issuance was also completed in January.
Improved Recurring Income and Dividend Stability
Recurring income has increased, helping align with the current dividend of $0.20 per share, unchanged for five quarters.
Reduction in Expenses
Total G&A expenses remained unchanged compared to the previous quarter, and portfolio operating expenses decreased by $1.5 million.
Lowlights
Undepreciated Loss Per Share
The company reported an undepreciated loss per share of $0.44 in the fourth quarter, compared to undepreciated earnings of $0.39 in the third quarter.
Unrealized Losses Due to Higher Benchmark Rates
Net unrealized losses totaled $131.6 million due to lower asset prices, primarily in the agency RMBS portfolio and residential loan book.
Foreclosure Losses
Recognized losses of $9.9 million, or $0.11 per share, primarily from foreclosed properties that remain on the balance sheet.
Decrease in Book Value
GAAP book value decreased by 5.6% during the quarter, with adjusted book value per share down 4.8% from the third quarter.
Company Guidance
During the New York Mortgage Trust's fourth-quarter 2024 earnings call, the company reported significant growth and strategic shifts. The portfolio expanded by 44% compared to the previous year, with $4.1 billion in acquisitions primarily in liquid agency bonds and higher spread bridge loans. The adjusted interest income saw a 60% year-over-year increase, contributing $0.36 to EPS in Q4, a $0.10 improvement from the previous year. The firm issued six securitizations in 2024 and began 2025 with a detailed bridge securitization, alongside an $83 million baby bond issuance. They maintained a dividend yield of over 13%, while the NYMT share price traded at a 41% discount to adjusted book value at year-end. The company also reported a $0.44 per share undepreciated loss in Q4, with unrealized losses of $131.6 million due to reduced asset valuations, offset by $92 million in gains from derivatives. The balance sheet showed $272 million, or $3.05 per share, in net discount to par assets, providing potential upside. The firm's liquidity was strong, with $343 million in excess liquidity at the end of the year. The focus for 2025 includes optimizing returns, accessing nonrecourse leverage, and maintaining a competitive dividend aligned with recurring earnings.New York Mortgage Corporate Events
Business Operations and StrategyFinancial Disclosures
New York Mortgage Reports 2024 Losses Amid Strategic Investments
Neutral
Feb 19, 2025
In its report for the fourth quarter and full year 2024, New York Mortgage Trust revealed a net loss of $41.8 million for the quarter and $103.8 million for the year, attributed to its common shareholders. Despite these losses, the company achieved significant investment activities, including purchasing $2.2 billion in investment securities and $1.9 billion in residential loans, and completed multiple securitizations and sales of multi-family apartment communities, generating substantial proceeds and gains. The company’s strategic focus on expanding its portfolio by $2.2 billion in 2024, particularly in liquid agency bond and higher-spread bridge loan markets, led to a 60% increase in adjusted interest income year-over-year, positioning it for future earnings growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.