MFA Financial Return On Asset vs. Profit Margin

MFA Stock  USD 11.11  0.04  0.36%   
Taking into consideration MFA Financial's profitability measurements, MFA Financial's profitability may be sliding down. It has an above-average odds of reporting lower numbers next quarter. Profitability indicators assess MFA Financial's ability to earn profits and add value for shareholders. At present, MFA Financial's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.58, whereas Days Sales Outstanding is forecasted to decline to 170.23. At present, MFA Financial's Operating Income is projected to decrease significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 135.8 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to about 16.8 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.860.8541
Slightly Up
Pretty Stable
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.
  
Check out Correlation Analysis.
For information on how to trade MFA Stock refer to our How to Trade MFA Stock guide.
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of MFA Financial. If investors know MFA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about MFA Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.78)
Dividend Share
1.4
Earnings Share
1.63
Revenue Per Share
3.551
Quarterly Revenue Growth
4.999
The market value of MFA Financial is measured differently than its book value, which is the value of MFA that is recorded on the company's balance sheet. Investors also form their own opinion of MFA Financial's value that differs from its market value or its book value, called intrinsic value, which is MFA Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because MFA Financial's market value can be influenced by many factors that don't directly affect MFA Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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 Profit Margin vs. Return On Asset 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 regarded second in return on asset category among its peers. It is rated below average in profit margin category among its peers fabricating about  29.04  of Profit Margin per Return On Asset. At present, MFA Financial's Net Profit Margin is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MFA Financial's earnings, one of the primary drivers of an investment's value.

MFA Profit Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

MFA Financial

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0191
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

MFA Financial

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.55 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

MFA Profit Margin Comparison

MFA Financial is currently under evaluation in profit margin category among its peers.

MFA Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MFA Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MFA Financial will eventually generate negative long term returns. The profitability progress is the general direction of MFA Financial's change in net profit over the period of time. It can combine multiple indicators of MFA Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income17.7 M16.8 M
Operating Income69.2 M116 M
Net Income80.2 M135.8 M
Income Tax Expense-4.2 M-4 M
Income Before Tax80.2 M146.2 M
Net Loss-238 M-226.1 M
Total Other Income Expense Net11 M11.6 M
Net Loss-2.9 M-2.7 M
Net Interest Income185.7 M171.5 M
Interest Income578.6 M510.2 M
Non Operating Income Net Other29.2 M18.3 M
Change To Netincome-29.8 M-31.3 M
Net Income Per Share 0.78  0.75 
Income Quality 1.36  2.11 
Net Income Per E B T 1.23  1.34 

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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When determining whether MFA Financial offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of MFA Financial's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mfa Financial Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mfa Financial Stock:
Check out Correlation Analysis.
For information on how to trade MFA Stock refer to our How to Trade MFA Stock guide.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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.