Annaly Capital Management Inc. Common Stock (NLY)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

Strengths

• Solid return on equity of 15.0% above cost of capital
• Revenue growth of 101.2% demonstrates strong top-line momentum
• Attractive 12.4% dividend yield providing steady income returns
• FairStock composite score of 78/100 places it in the top tier across value, quality, and momentum factors

Concerns

• High leverage at 7.33x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of -0.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Annaly Capital Management Inc. Common Stock is a mid-cap real estate company valued at $16.4 billion. The business generates $2.5 billion in annual revenue with a 9.7% net margin. From a quality standpoint, Annaly shows distressed Altman Z-Score of -0.0 warrants caution and adequate 15% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 7.2x, with offers a 44% margin of safety vs Graham Number of $40. Growth dynamics show revenue growing at 101.2% and profit growth of 110.3%. The 12.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 78/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Annaly's 101% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 7.3x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer