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AG Mortgage (MITT)
NYSE:MITT
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AG Mortgage
(NYSE:MITT)
75Outperform
AG Mortgage (MITT) vs. S&P 500 (SPY)
Market Cap
$220.37M
Dividend Yield10.09%
Average Volume (3M)205.33K
Price to Earnings (P/E)6.1
Beta (1Y)1.20
Revenue Growth50.41%
EPS Growth-21.02%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength69
IndustryREITs
Share Statistics
EPS (TTM)1.23
Shares Outstanding29,658,830
10 Day Avg. Volume241,327
30 Day Avg. Volume205,331
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)3.39
Price to Cash Flow (P/CF)3.60
P/FCF Ratio0.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.25Price Target Upside12.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
AG Mortgage Business Overview & Revenue Model
Company DescriptionAG Mortgage Investment Trust, Inc. (MITT) is a real estate investment trust (REIT) that focuses on investing in, acquiring, and managing a diversified portfolio of residential mortgage assets, other real estate-related securities, and financial assets. The company is primarily involved in the secondary mortgage market, where it seeks to generate returns through a combination of current income and capital appreciation.
How the Company Makes MoneyAG Mortgage makes money primarily through the acquisition and management of residential mortgage-backed securities (RMBS), credit investments such as non-agency RMBS, asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS). The company earns revenue from the interest income on these securities, as well as from the appreciation in the value of its asset holdings. Additionally, AG Mortgage generates income through its strategic partnerships and financing arrangements, which allow it to leverage its portfolio to maximize returns. The company also benefits from its expertise in asset management, which helps optimize the performance and risk profile of its investments.
AG Mortgage Financial Statement Overview
Summary
AG Mortgage shows promising revenue growth and profitability, with improved debt management enhancing financial stability. Cash flow generation is strong, but high capital expenditures warrant attention. While the company demonstrates resilience, careful monitoring of operational efficiency and liquidity is recommended to mitigate potential risks.Income Statement
AG Mortgage has demonstrated significant revenue growth from 2022 to 2023, with total revenue increasing from $218,000 to $63.7 million. The net profit margin for 2023 is high at approximately 84.6%, indicating strong profitability. However, the EBIT margin is unavailable for 2023, and the EBITDA margin has shown volatility in previous years, reflecting potential instability in operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio improved significantly from 2022 to 2023 as total debt was reduced, enhancing financial stability. The equity ratio is relatively stable, providing a solid foundation. However, the return on equity (ROE) has shown fluctuations due to varying net income, which may pose risks to sustained shareholder value.60
Neutral
Cash Flow
AG Mortgage's operating cash flow has improved significantly in 2023, supporting a strong free cash flow position. The company exhibits a high free cash flow to net income ratio, indicating efficient cash generation relative to earnings. However, the investing cash flow is negative, suggesting high capital expenditures that may impact future liquidity.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 38.15M | 65.89M | 63.66M | 218.00K | 99.80M | -390.36M | Gross Profit |
| 13.56M | 65.89M | 46.14M | -17.08M | 86.44M | -795.22M | EBIT |
| 26.84M | -9.43M | 37.51M | 47.47M | 104.19M | -420.92M | EBITDA |
| 10.85M | 0.00 | 248.56M | 52.94M | 0.00 | 0.00 | Net Income Common Stockholders |
| -16.48M | 55.74M | 53.78M | -161.76M | 104.19M | -420.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 118.66M | 118.66M | 111.53M | 155.69M | 68.08M | 47.93M | Total Assets |
| 6.91B | 6.91B | 6.13B | 4.37B | 3.36B | 1.40B | Total Debt |
| 95.72M | 95.72M | 5.56B | 3.88B | 2.78B | 418.29M | Net Debt |
| -22.94M | -22.94M | 5.45B | 3.80B | 2.71B | 370.37M | Total Liabilities |
| 6.37B | 6.37B | 5.60B | 3.91B | 2.78B | 990.34M | Stockholders Equity |
| 543.42M | 543.42M | 528.37M | 462.80M | 570.38M | 409.70M |
| Cash Flow | Free Cash Flow | ||||
| 29.32M | 55.84M | 28.13M | 22.52M | 26.30M | 4.16M | Operating Cash Flow |
| 29.32M | 55.84M | 28.13M | 22.52M | 26.30M | 4.16M | Investing Cash Flow |
| -1.92B | -713.13M | -433.50M | -1.49B | -1.90B | 2.19B | Financing Cash Flow |
| 1.94B | 670.29M | 432.14M | 1.47B | 1.91B | -2.26B |
AG Mortgage Technical Analysis
Positive
7.36
Price Trends
6.94
Positive
6.90
Positive
6.82
Positive
Market Momentum
0.15
Positive
54.77
Neutral
21.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITT, the sentiment is Positive. The current price of 7.36 is below the 20-day moving average (MA) of 7.38, above the 50-day MA of 6.94, and above the 200-day MA of 6.82, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MITT.
AG Mortgage Risk Analysis
AG Mortgage disclosed 66 risk factors in its most recent earnings report. AG 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
AG 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $220.37M | 6.08 | 10.40% | 10.09% | 50.41% | -21.02% | |
68 Neutral | $12.13B | 13.37 | 8.40% | 12.00% | 13.33% | ― | |
62 Neutral | $1.44B | 5.93 | 13.74% | 12.99% | 28.33% | ― | |
61 Neutral | $4.74B | 19.16 | -3.00% | 7.93% | 6.45% | -20.78% | |
59 Neutral | $1.12B | 13.36 | 6.35% | 12.87% | 26.34% | 79.07% | |
58 Neutral | $532.73M | 13.49 | 7.97% | 18.54% | 137.36% | ― | |
52 Neutral | $1.45B | 8.01 | -1.09% | 15.15% | -46.65% | 76.86% |
* Real Estate Sector Average
Performance Comparison
MITT
AG Mortgage
7.36
1.90
34.80%
NLY
Annaly Capital
20.97
3.69
21.35%
ARR
ARMOUR Residential REIT
18.48
1.46
8.58%
IVR
Invesco Mortgage
8.44
0.66
8.48%
MFA
MFA Financial
10.67
0.63
6.27%
TWO
Two Harbors
13.37
2.14
19.06%
AG Mortgage Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -2.77% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant achievements in book value increase, economic return on equity, and successful acquisition results. However, some concerns remain with the flat book value in January and previous losses contributed by Arc Home. Overall, the highlights significantly outweigh the lowlights.Highlights
Increase in Book Value
The book value increased by 0.6% from $10.58 to $10.64 during the fourth quarter, with an annual increase of 4.3%.
Economic Return on Equity
AG Mortgage Investment Trust delivered an 11.7% economic return on equity for shareholders in 2024.
Dividend Increase
The quarterly dividend was increased by 5.6% earlier in the year.
Successful WMC Acquisition
The acquisition of WMC increased the market cap by over 45% and resulted in a total stockholder return of more than 15%.
Arc Home Profitability
Arc Home achieved profitability in December and January after investments in new leadership positions.
Lowlights
Flat Book Value in January
The book value remained flat for the month of January, indicating potential challenges.
Arc Home's Previous Losses
Arc Home contributed a loss of $0.02 to earnings available for distribution over the past quarters.
Company Guidance
During the AG Mortgage Investment Trust Inc. fourth quarter 2024 earnings call, management provided several key financial metrics, demonstrating the company's robust performance amid challenging market conditions. For the fourth quarter, the company reported an increase in book value by 0.6%, moving from $10.58 to $10.64, and delivered a 2.4% economic return on equity. For the full year 2024, the quarterly dividend was increased by 5.6%, contributing to an annual economic return on equity of 11.7%. The economic leverage ratio was maintained at 1.4 turns, down from 2.7 turns when the CEO took over in October 2022, showcasing disciplined financial management. Additionally, the successful acquisition of WMC led to a more than 45% increase in market cap and a 15% total stockholder return since the transaction, highlighting the company's strategic growth initiatives.AG Mortgage Corporate Events
Private Placements and Financing
AG Mortgage Updates Equity Distribution Agreements
Neutral
Nov 6, 2024
AG Mortgage Investment Trust, Inc. has entered into new Equity Distribution Agreements with several sales agents to potentially offer up to $75 million in common stock. The proceeds are intended for general corporate purposes, including acquiring residential investments. Sales can occur through market offerings on the NYSE and compensate agents with up to 2% of the gross sales price. The company also terminated agreements with previous sales agents, effective November 6, 2024.
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.