Latest Ratios: P/E Ratio 15.0x · EV/EBITDA 19.3x · ROE 9.6%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.6B | $2.7B | $2.7B | — | — | — | — | — | — | — | — |
| Enterprise Value | $13.3B | $13.5B | $11.5B | — | — | — | — | — | — | — | — |
| P/E Ratio → | 15.01 | 15.12 | 30.93 | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.93 | 3.06 | 9.53 | — | — | — | — | — | — | — | — |
| P/B Ratio | 1.45 | 1.46 | 1.45 | — | — | — | — | — | — | — | — |
| P/FCF | 33.60 | 35.08 | 13.32 | — | — | — | — | — | — | — | — |
| P/OCF | 33.60 | 35.08 | 13.32 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 15.37 | 41.21 | — | — | — | — | — | — | — | — |
| EV / EBITDA | 19.27 | 19.44 | 17.98 | — | — | — | — | — | — | — | — |
| EV / EBIT | 19.34 | 19.50 | 96.27 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 176.47 | 57.58 | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 96.2% | 96.2% | 87.4% | 85.4% | 163.4% | 85.6% | 100.0% | 100.0% | 67.4% | 74.8% | 79.3% |
| Operating Margin | 78.8% | 78.8% | 228.1% | 29.6% | 331.3% | 87.3% | — | — | 153.5% | 19.9% | 25.9% |
| Net Profit Margin | 20.2% | 20.2% | 42.6% | 34.3% | 342.5% | 67.3% | 122.2% | 87.3% | 86.8% | 86.4% | 87.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.6% | 9.6% | 6.4% | 4.1% | -10.2% | 13.0% | -23.0% | 4.9% | 2.7% | 2.9% | 4.2% |
| ROA | 1.4% | 1.4% | 1.1% | 0.8% | -2.5% | 4.1% | -6.6% | 2.9% | 2.6% | 2.8% | 2.4% |
| ROIC | 4.4% | 4.4% | 5.5% | 0.7% | -2.4% | 7.2% | — | — | 3.5% | 0.5% | 0.9% |
| ROCE | 5.8% | 5.8% | 5.9% | 0.7% | -2.5% | 5.5% | — | — | 13.8% | 2.3% | 3.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 6.01 | 6.01 | 4.99 | 2.63 | 3.45 | 1.24 | 0.73 | 2.96 | 0.07 | 0.04 | 0.01 |
| Debt / EBITDA | 15.88 | 15.88 | 14.35 | 68.20 | — | 7.27 | — | 3023.39 | 0.91 | 1.49 | 0.31 |
| Net Debt / Equity | — | 5.90 | 4.81 | 2.47 | 3.28 | 1.12 | 0.41 | 2.94 | 0.06 | 0.00 | -0.01 |
| Net Debt / EBITDA | 15.57 | 15.57 | 13.82 | 63.86 | — | 6.57 | — | 3002.10 | 0.85 | 0.04 | -0.52 |
| Debt / FCF | — | 141.39 | 44.26 | 43.09 | 17.83 | 26.27 | 30.58 | 46.57 | 4.97 | 0.06 | -1.93 |
| Interest Coverage | 1.34 | 1.34 | 0.23 | -0.01 | 0.11 | 3.73 | — | — | 1.30 | 1.64 | 1.62 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.18 | 2.18 | 30.45 | 2.09 | 62.94 | 2.07 | 3.61 | 50.44 | 0.01 | 0.06 | 0.03 |
| Quick Ratio | 2.18 | 2.18 | 30.45 | 2.09 | 62.94 | 2.07 | 3.61 | 50.44 | -0.02 | 0.04 | 0.02 |
| Cash Ratio | 0.92 | 0.92 | 1.08 | 1.09 | 2.49 | 1.29 | 3.45 | 0.46 | 0.01 | 0.06 | 0.03 |
| Asset Turnover | — | 0.07 | 0.02 | 0.02 | -0.01 | 0.05 | -0.08 | 0.03 | 0.03 | 0.03 | 0.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 0.45 | 0.62 | 0.92 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 7.1% | 7.0% | 5.4% | — | — | — | — | — | — | — | — |
| Payout Ratio | 106.6% | 106.6% | 120.6% | 178.5% | — | 47.5% | — | 95.6% | 109.3% | 95.7% | 95.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 6.6% | 3.2% | — | — | — | — | — | — | — | — |
| FCF Yield | 3.0% | 2.9% | 7.5% | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.6% | 0.6% | 0.1% | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 7.7% | 7.6% | 5.5% | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $105M | $105M | $104M | $103M | $118M | $113M | $117M | $105M | $97M | $93M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying MFAO stock.
MFA Financial, Inc. 9.000% Senior Notes's current P/E ratio is 15.0x. The historical average is 23.0x.
MFA Financial, Inc. 9.000% Senior Notes's current EV/EBITDA is 19.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.7x.
MFA Financial, Inc. 9.000% Senior Notes's return on equity (ROE) is 9.6%. The historical average is 6.5%.
Based on historical data, MFA Financial, Inc. 9.000% Senior Notes is trading at a P/E of 15.0x. Compare with industry peers and growth rates for a complete picture.
MFA Financial, Inc. 9.000% Senior Notes's current dividend yield is 7.10% with a payout ratio of 106.6%.
MFA Financial, Inc. 9.000% Senior Notes has 96.2% gross margin and 78.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
MFA Financial, Inc. 9.000% Senior Notes's Debt/EBITDA ratio is 15.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated leverage and volatile earnings
Metrics are mathematically derived from official filings.
Valuation Premium Overstated by Distorted P/E
The stock trades at a P/E of 14.98 and P/B of 1.45, but these metrics are misleading for a mortgage REIT where earnings are heavily distorted by unrealized gains and losses on the investment portfolio.
Standard P/E and P/B ratios are not the appropriate valuation tools for MFAO. The P/E of 14.98 is based on GAAP net income that includes significant non-cash mark-to-market adjustments, which have caused quarterly earnings to swing wildly from positive to negative. A more relevant metric, the implied cap rate derived from net interest income, suggests the market is pricing the portfolio's earning assets at a premium relative to peers like MITT and BXMT, likely reflecting a premium for the proprietary origination platform of Lima One.
NOI Margin Volatility Undermines Earnings Quality
NOI margins have exhibited extreme volatility, collapsing from 100% to 29.2% in 2025Q3 before recovering to 95.8% in 2026Q2, indicating profitability is highly sensitive to asset realizations and securitization timing.
The dramatic swings in NOI margin, as reported in financial statements, are not indicative of stable property-level economics but rather reflect the lumpy recognition of gains and losses associated with MFAO's credit portfolio management. The recovery to a 95.8% margin in the latest quarter coincides with a 38.6% surge in FFO, yet the prior quarter's negative FFO demonstrates that this profitability is not organic or recurring. This pattern suggests FFO growth is driven by episodic asset dispositions and securitization activity rather than sustainable net interest margin expansion.
Dividend Relies on External Capital, Not Cash Flow
The FFO payout ratio of 80% in 2026Q2 appears sustainable, but the complete absence of reported AFFO across all quarters raises serious questions about the dividend's long-term coverage by core operating cash flow.
While the 80% FFO payout ratio might look conservative on the surface, the lack of any positive AFFO data is a critical red flag. This suggests that after accounting for maintenance capital expenditures and normalized cash adjustments, the company may not be generating sufficient cash from operations to cover the dividend. The cash flow analysis indicates a reliance on asset sales and external capital markets to fund distributions, a practice that is not sustainable if credit markets tighten or the value of the mortgage portfolio declines.
Leverage Escalation Threatens Solvency Buffer
The D/E ratio has surged to 6.56 in 2026Q2, driven by a near-doubling of debt to $11.7B against a stagnant equity base of $1.8B, severely limiting the company's loss-absorption capacity.
The trajectory of leverage is alarming; total debt has ballooned while equity has remained flat for eight quarters, according to the balance sheet. This high leverage ratio, significantly above the 4.61 D/E of peer BXMT, creates substantial refinancing risk, especially given the absence of a detailed debt maturity profile. The leverage is primarily funded through short-term repo markets, making MFAO vulnerable to liquidity shocks that could force fire sales of assets, a scenario that has historically pressured the company.
Originations Growth Masks Credit Cycle Exposure
While Lima One originations grew 44% to $316 million, the portfolio's default rate of 7.0% and sensitivity to housing market downturns suggest underlying credit risks that may not be fully priced into the stock.
The rapid growth in Business Purpose Loans via Lima One is a key strategic driver, but it concentrates MFAO's exposure to the cyclical and credit-sensitive fix-and-flip and rental market. The reported improvement in the default rate to 7.0% is encouraging, yet the magnitude of realized losses on legacy multifamily loans indicates ongoing credit stress within the broader portfolio. This environment may force the company to increase loss provisions, directly compressing net interest income and FFO.
The P/E Ratio Misleads on Earnings Power
The most commonly misapplied ratio is the standard P/E of 14.98, which obscures the true earnings power by including volatile unrealized gains/losses that have caused net income to swing from a $30.8M loss in 2025Q4 to a $46.8M profit in 2026Q2.
For a mortgage REIT like MFAO, the P/E ratio is fundamentally misleading. GAAP net income is dominated by non-cash fair value adjustments on its mortgage-backed securities and loan portfolio, which are unrelated to recurring cash generation. This distortion is evident in the data where the P/E implies a steady earnings trajectory, but the reported FFO per share reveals extreme quarterly volatility. Analysts should instead focus on net interest income trends and distributable earnings, which isolate the recurring spread income and fee generation from the noise of portfolio mark-to-market activity.