INVESCO MORTGAGE CAPITAL INC Common Stock (IVR)

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $5.60 on 2026-10-13, Invesco Mortgage Capital looks statistically cheap: FairStock's calculations show a 3.54 P/E and 0.69 P/B, with a 14.13% ROE. But I distrust cheapness in leveraged financials unless the balance sheet is sound. This mortgage REIT earns a spread on mortgage-backed securities, so it has little pricing power and no real moat; results depend on financing costs, prepayments, credit, and interest-rate moves. The earnings record is volatile. FY2023 produced a net loss of $15.9M and EPS of -$0.85; FY2024 net income was $59.9M and EPS $0.65; FY2025 net income was $101.3M and EPS $1.32. In fiscal Q1 2026, the quarter ended 2026-03-31, it lost $19.9M, or EPS -$0.28, then in fiscal Q2 2026, the quarter ended 2026-06-30, it earned $35.0M, or EPS $0.34. The supplied Lynch category is TURNAROUND because it returned to profit after a loss within the last three years, but that is not steady compounding. D/E of 6.27 is heavy leverage, and ROCE of 1.90% is thin. The 22.33% dividend yield may attract income seekers, yet it also signals risk. Piotroski is 5/9, and beta is 1.57. CET1, net interest margin, and combined ratio are not in the data, so I cannot judge bank-specific safety. A low P/B and P/E can work if book value holds; if not, leverage can destroy it.

In plain English: Invesco Mortgage Capital invests in mortgage-backed securities. Its profits have swung between losses and gains, and it uses a lot of borrowed money, so the business looks risky. The stock price looks cheap compared with its earnings and asset value, but the very high dividend suggests caution.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer