Invesco Mortgage Capital, Inc. (IVR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Whitestone REIT

Universal Health Realty Income Trust

Chatham Lodging Trust

Invesco Mortgage Capital, Inc.

TPG RE Finance Trust, Inc.

Farmland Partners, Inc.

Gladstone Commercial Corp.

Diversified Healthcare Trust

Global Medical REIT, Inc.

Ares Commercial Real Estate Corp.

Gladstone Land Corp.

Why is Invesco Mortgage Capital, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 8.15%

Flat results in Jun 25

NET SALES(HY) At USD 48.42 MM has Grown at -79.97%
OPERATING CASH FLOW(Y) Lowest at USD 152.3 MM
INTEREST COVERAGE RATIO(Q) Lowest at 55.9

With ROE of 6.67%, it has a very attractive valuation with a 0.66 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.61%, its profits have risen by 732% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 1375.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.61% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Invesco Mortgage Capital, Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Invesco Mortgage Capital, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Invesco Mortgage Capital, Inc.

-12.79%

-0.38

28.99%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.32%

EBIT Growth (5y)

17.24%

EBIT to Interest (avg)

5.86

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

104.55%

Pledged Shares

Institutional Holding

52.16%

ROCE (avg)

23.46%

ROE (avg)

8.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.85

EV to EBIT

1.59

EV to EBITDA

1.60

EV to Capital Employed

0.81

EV to Sales

2.43

PEG Ratio

0.15

Dividend Yield

1064.15%

ROCE (Latest)

50.89%

ROE (Latest)

12.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

PRE-TAX PROFIT(Q)

At USD 51.49 MM has Grown at 1,368.74%

NET PROFIT(Q)

At USD 51.46 MM has Grown at 1,367.47%

ROCE(HY)

Highest at 13.26%

RAW MATERIAL COST(Y)

Fallen by 1.41% (YoY

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 97.28 MM

NET SALES(HY)

At USD 162.44 MM has Grown at -22.22%

CASH AND EQV(HY)

Lowest at USD 347.15 MM

DEBT-EQUITY RATIO (HY)

Highest at 683.7 %

DIVIDEND PER SHARE(HY)

Lowest at USD 7.91

Here's what is working for Invesco Mortgage Capital, Inc.

Pre-Tax Profit

At USD 51.49 MM has Grown at 1,368.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 51.46 MM has Grown at 1,367.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Raw Material Cost

Fallen by 1.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Invesco Mortgage Capital, Inc.

Net Sales

At USD 162.44 MM has Grown at -22.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Operating Cash Flow

Lowest at USD 97.28 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 347.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 683.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at USD 7.91

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)