Latest Ratios: P/E Ratio 7.2x · EV/EBITDA 18.3x · ROE 14.1%. (1997–2025 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 | $15.8B | $14.3B | $9.6B | $9.6B | $8.7B | $11.2B | $12.0B | $13.5B | $11.9B | $12.7B | $9.7B |
| Enterprise Value | $125.6B | $124.2B | $98.9B | $86.8B | $76.8B | $72.9B | $82.6B | $22.2B | $18.2B | $19.1B | $16.0B |
| P/E Ratio → | 7.21 | 7.66 | 11.30 | — | 5.38 | 4.90 | — | — | — | 8.68 | 7.17 |
| P/S Ratio | 2.36 | 2.14 | 1.51 | 1.71 | 2.09 | 14.87 | 8.05 | 7.45 | 5.71 | 5.39 | 4.85 |
| P/B Ratio | 0.83 | 0.89 | 0.75 | 0.84 | 0.76 | 0.85 | 0.85 | 0.86 | 0.84 | 0.85 | 0.77 |
| P/FCF | — | — | 3.91 | 4.86 | 1.99 | 4.40 | 22.64 | — | 4.53 | 1.83 | 1.45 |
| P/OCF | 22.79 | 20.69 | 2.89 | 4.05 | 1.62 | 3.63 | 22.64 | — | 4.53 | 1.83 | 1.41 |
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 | — | 18.54 | 15.56 | 15.49 | 18.51 | 97.06 | 55.63 | 12.25 | 8.74 | 8.12 | 8.03 |
| EV / EBITDA | 18.28 | 18.07 | 17.50 | 38.28 | 24.45 | 24.69 | 22833.54 | 35.03 | 105.31 | 11.91 | 10.56 |
| EV / EBIT | 18.29 | 18.08 | 17.60 | 38.70 | 24.93 | 27.52 | — | 36.39 | 9.33 | 7.39 | 7.66 |
| EV / FCF | — | — | 40.40 | 44.07 | 17.63 | 28.73 | 156.43 | — | 6.94 | 2.76 | 2.39 |
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 | 99.9% | 99.9% | 99.0% | 99.1% | 99.0% | 93.4% | 96.9% | 97.4% | 98.3% | 97.7% | 96.5% |
| Operating Margin | 102.6% | 102.6% | 88.4% | 40.0% | 75.2% | 389.8% | -1.3% | 33.7% | 7.4% | 67.0% | 74.3% |
| Net Profit Margin | 30.3% | 30.3% | 15.8% | -29.3% | 41.6% | 318.1% | -60.0% | -119.2% | 2.6% | 66.8% | 72.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.1% | 14.1% | 8.3% | -14.5% | 14.0% | 17.6% | -6.0% | -14.5% | 0.4% | 11.4% | 11.7% |
| ROA | 1.7% | 1.7% | 1.0% | -1.9% | 2.2% | 2.9% | -0.8% | -1.8% | 0.1% | 1.7% | 1.8% |
| ROIC | 4.5% | 4.5% | 4.4% | 2.0% | 3.0% | 2.8% | -0.0% | 2.0% | 0.6% | 5.9% | 6.6% |
| ROCE | 16.3% | 16.3% | 19.3% | 10.0% | 15.3% | 11.1% | -0.0% | 0.5% | 0.2% | 1.7% | 1.8% |
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 | 6.92 | 6.92 | 7.06 | 6.83 | 6.01 | 4.69 | 5.13 | 0.67 | 0.57 | 0.48 | 0.63 |
| Debt / EBITDA | 16.28 | 16.28 | 15.86 | 34.18 | 21.74 | 20.95 | 19872.47 | 16.64 | 46.57 | 4.44 | 5.19 |
| Net Debt / Equity | — | 6.80 | 7.03 | 6.81 | 5.99 | 4.68 | 5.04 | 0.55 | 0.45 | 0.43 | 0.50 |
| Net Debt / EBITDA | 15.98 | 15.98 | 15.81 | 34.06 | 21.69 | 20.91 | 19528.62 | 13.73 | 36.52 | 4.00 | 4.18 |
| Debt / FCF | — | — | 36.49 | 39.21 | 15.64 | 24.33 | 133.79 | — | 2.41 | 0.93 | 0.95 |
| Interest Coverage | 1.42 | 1.42 | 1.22 | 0.58 | 2.35 | 10.63 | -0.02 | 0.22 | 1.03 | 2.56 | 3.18 |
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 | 0.03 | 0.03 | 0.05 | 0.10 | 0.04 | 0.01 | — | 2.45 | 0.37 | 0.70 | 0.93 |
| Quick Ratio | 0.03 | 0.03 | 0.05 | 0.10 | 0.04 | 0.01 | — | 2.45 | 0.54 | 1.39 | 258.45 |
| Cash Ratio | 0.02 | 0.02 | 0.03 | 0.07 | 0.00 | 0.00 | — | 1.97 | 1.50 | 1.53 | 4.43 |
| Asset Turnover | — | 0.05 | 0.06 | 0.06 | 0.05 | 0.01 | 0.02 | 0.01 | 0.02 | 0.02 | 0.02 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| 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 | 14.0% | 13.1% | 15.6% | 15.8% | 17.5% | 12.2% | 12.3% | 12.5% | 13.0% | 10.7% | 12.6% |
| Payout Ratio | 92.8% | 92.8% | 149.1% | — | 88.1% | 56.9% | — | — | 2832.1% | 86.2% | 85.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 13.9% | 13.1% | 8.9% | — | 18.6% | 20.4% | — | — | — | 11.5% | 13.9% |
| FCF Yield | — | — | 25.6% | 20.6% | 50.2% | 22.7% | 4.4% | — | 22.1% | 54.6% | 69.1% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 5.6% | 1.7% | 3.5% | 1.5% | 1.1% |
| Total Shareholder Yield | 14.0% | 13.1% | 15.6% | 15.8% | 17.5% | 12.2% | 17.9% | 14.1% | 16.4% | 12.1% | 13.7% |
| Shares Outstanding | — | $641M | $523M | $495M | $412M | $357M | $354M | $359M | $302M | $267M | $243M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying NLY stock.
Annaly Capital Management, Inc.'s current P/E ratio is 7.2x. The historical average is 11.9x. This places it at the 35th percentile of its historical range.
Annaly Capital Management, Inc.'s current EV/EBITDA is 18.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.0x.
Annaly Capital Management, Inc.'s return on equity (ROE) is 14.1%. The historical average is 9.1%.
Based on historical data, Annaly Capital Management, Inc. is trading at a P/E of 7.2x. This is at the 35th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Annaly Capital Management, Inc.'s current dividend yield is 13.96% with a payout ratio of 92.8%.
Annaly Capital Management, Inc. has 99.9% gross margin and 102.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Annaly Capital Management, Inc.'s Debt/EBITDA ratio is 16.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated leverage and spread volatility
Metrics are mathematically derived from official filings.
P/FFO Distorted by Earnings Volatility
NLY trades at 23.2x forward FFO, a premium to AGNC's 7.4x P/E, but FFO per share swung from $0.11 to $1.46 over the past year, per reported figures, making the multiple unreliable.
The P/FFO of 23.2x in Q2 2026 appears elevated relative to the peer group, but this is largely an artifact of depressed FFO in prior quarters. With FFO per share recovering to $1.12 in Q2 2026 from $0.11 in Q2 2025, the trailing multiple overstates valuation. The implied cap rate, derived from NOI and enterprise value, is not directly disclosed, but the 12.6% dividend yield suggests the market is pricing in significant risk. Investors should compare NLY's P/FFO to its own historical range rather than to industrial REITs, as the mREIT model relies on spread income rather than property appreciation.
NOI Margin Stable but Earnings Quality Questioned
NOI margin remained above 98.8% across all quarters, as reported in financial statements, but FFO per share ranged from -$0.00 to $1.46, indicating that profitability is driven by non-cash adjustments and hedge gains rather than core spread income.
The consistently high NOI margin is a structural artifact of mREIT accounting, where interest income is the primary revenue and direct property costs are minimal. The real profitability driver is the net interest spread, which has been under pressure due to the inverted yield curve. The 102.58% operating margin in Q2 2026 suggests that realized gains on interest rate hedges are being included in operating income, which may not be repeatable. AFFO per share of $0.84 in Q2 2026 versus FFO of $1.12 highlights a persistent gap, indicating that maintenance capex and premium amortization are consuming a significant portion of earnings.
Dividend Coverage Thin Despite High Yield
The FFO payout ratio of 67.1% in Q2 2026 appears manageable, but AFFO covered dividends by only 0.67x, as disclosed in financial statements, suggesting that the 12.6% dividend yield may not be fully supported by distributable cash flow.
While the FFO payout ratio of 67.1% is within the typical REIT range, the AFFO payout ratio is the more conservative measure, and it indicates that Annaly is paying out more than it generates in AFFO. This gap is driven by significant non-cash adjustments, including premium amortization and mark-to-market losses on derivatives. The negative AFFO in Q1 2026 (-$0.30 per share) and Q2 2025 (-$0.43 per share) underscores the volatility of distributable earnings. Investors should monitor whether the dividend is being funded by retained cash flow or by additional leverage, as the latter would be unsustainable.
Leverage Creeps Higher Amid Rate Uncertainty
Debt-to-equity rose to 7.36x in Q2 2026 from 6.92x in Q4 2025, as reported in financial statements, while interest coverage remained thin at 1.63x, indicating elevated refinancing risk in a volatile rate environment.
The debt-to-equity ratio of 7.36x is among the highest in the peer group, with only ARMOUR Residential at 7.94x showing higher leverage. Interest coverage of 1.63x in Q2 2026, though improved from 1.23x in Q1 2026, remains low, meaning that a modest increase in short-term borrowing costs could pressure earnings. The reliance on repo financing, which is subject to margin calls, amplifies the risk of forced asset sales if mortgage spreads widen sharply. The cash buffer of $2.9B represents only 2% of total assets, providing limited cushion against a liquidity shock.
Diversification Masks Liquidity Mismatch
Annaly's three-pillar strategy, including Agency MBS, MSRs, and residential credit, provides diversification, but the MSR and credit assets are less liquid than Agency MBS, as per reported figures, potentially creating a liquidity mismatch in stress scenarios.
While the Agency MBS portfolio is highly liquid and can be sold quickly, the MSR and residential credit segments are harder to exit during a market downturn. This structural liquidity mismatch may not be fully reflected in the debt-to-equity ratio, which treats all assets equally. The G&A cost efficiency appears reasonable given the internal management structure, but the lack of forward guidance in Q2 2026 suggests management is uncertain about the rate path. Investors should monitor the composition of the portfolio and the potential for forced sales if margin calls occur.
P/E Misleads for Mortgage REITs
The standard P/E ratio of 7.98x is deeply misleading for Annaly, as it ignores depreciation and non-cash adjustments, according to reported figures, and should be replaced with P/FFO or P/AFFO for a true earnings comparison.
For a mortgage REIT, net income is heavily distorted by mark-to-market gains and losses on the MBS portfolio and derivatives, making P/E an unreliable valuation metric. The P/E of 7.98x appears cheap, but it does not capture the volatility of FFO or the sustainability of dividends. Analysts should use P/FFO, which in Q2 2026 was 23.18x, and P/AFFO, which would be even higher given the AFFO shortfall. Additionally, the debt-to-equity ratio of 7.36x is more relevant than the standard D/E for industrial companies, as it reflects the leverage used to fund the asset portfolio. Investors should focus on economic leverage and interest coverage rather than P/E to assess NLY's financial health.