MFA Financial Operating Margin vs. Return On Equity

MFA-PB Preferred Stock  USD 23.16  0.78  3.49%   
Taking into consideration MFA Financial's profitability measurements, MFA Financial may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess MFA Financial's ability to earn profits and add value for shareholders.
For MFA Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MFA Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MFA Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MFA Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MFA Financial over time as well as its relative position and ranking within its peers.
  
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For information on how to trade MFA Preferred Stock refer to our How to Trade MFA Preferred Stock guide.
Please note, there is a significant difference between MFA Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if MFA Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MFA Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

MFA Financial Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MFA Financial's current stock value. Our valuation model uses many indicators to compare MFA Financial value to that of its competitors to determine the firm's financial worth.
MFA Financial is considered to be number one stock in operating margin category among its peers. It also is considered to be number one stock in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value MFA Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for MFA Financial's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

MFA Return On Equity vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

MFA Financial

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
3.83 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

MFA Financial

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0838
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

MFA Return On Equity Comparison

MFA Financial is currently under evaluation in return on equity category among its peers.

MFA Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on MFA Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of MFA Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the MFA Financial's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in MFA Financial without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Piotroski F Score

Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
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Use Investing Themes to Complement your MFA Financial position

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Steel Works Etc
Steel Works Etc Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Steel Works Etc theme has 54 constituents at this time.
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Other Information on Investing in MFA Preferred Stock

To fully project MFA Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MFA Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include MFA Financial's income statement, its balance sheet, and the statement of cash flows.
Potential MFA Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MFA Financial investors may work on each financial statement separately, they are all related. The changes in MFA Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MFA Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.