Annaly Capital Management Inc. Common Stock (NLY)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I see Annaly as a leveraged mortgage-finance business, not a simple earnings multiple. It invests in agency mortgage-backed securities and related residential mortgage assets, so results depend on spreads, funding costs and leverage. The filed record shows a turnaround: in fiscal 2023, the year ended 2023-12-31, net income was a loss of $1.6 billion and diluted EPS was -$3.61; in fiscal 2024, net income was $1.0 billion and EPS $1.62; in fiscal 2025, net income was $2.0 billion and EPS $2.92. Quarterly results are lumpy: in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $57.1 million and EPS $0.03; in fiscal Q3 2025, the quarter ended 2025-09-30, net income was $832.4 million and EPS $1.20; in fiscal Q1 2026, the quarter ended 2026-03-31, net income was $282.7 million and EPS $0.33; and in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $822.7 million and EPS $1.06. At the 2026-10-26 close of $18.26, FairStock calculates P/E 4.41, P/B 0.91, ROE 19.57%, ROCE 2.33%, dividend yield 14.25%, and Piotroski F-Score 5/9. The low P/E and sub-book P/B look cheap, but for a leveraged mortgage REIT book value and spread income matter more than one year's earnings. Debt-to-equity of 7.38 is high, beta is 1.24, and the 14.25% yield signals both income and risk. CET1, net interest margin and combined ratio are not in the data. FairStock's 78/100 score and TURNAROUND label fit the rebound, but the moat is not obvious; this is a spread business to watch closely.

In plain English: Annaly owns and manages mortgage investments, mostly bundles of U.S. home loans, and pays a very high dividend. Its profits have bounced back after a loss year, but the business is complex and relies on borrowed money. At $18.26, the price looks low compared with its reported earnings and accounting value, though those numbers can swing sharply.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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