Invesco Mortgage Capital Inc. (IVR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-1482.0%

-$73.73

vs $5.34 price

Levered DCF

-$74.82

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

-1.58

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	6.37×	12.38×	-9.92×	-0.99×	-5.51×	-0.33×	6.56×	-13.37×
P/B	0.7×	0.59×	0.47×	0.51×	0.52×	0.41×	0.71×	0.67×
P/S	1.64×	1.31×	1.6×	-0.95×	14.46×	-0.34×	5.14×	3.63×
EV / EBITDA	19.06×	16.92×	21.34×	-13.49×	-92.99×	0×	0×	0×
Gross margin	35.3%	24.0%	76.4%	86.3%	58.1%	100.0%	100.0%	90.4%
Operating margin	29.8%	18.2%	-6.8%	75.7%	-159.3%	0.0%	0.0%	-16.6%
Net margin	29.8%	18.2%	-6.8%	92.1%	-178.8%	101.6%	89.2%	-16.7%
Current ratio	0.04×	0.04×	0.05×	0.07×	0.09×	0×	0.95×	0.72×
Debt / equity	7.05×	6.7×	5.7×	5.27×	4.99×	5.29×	0.56×	0.72×
Interest coverage	0.46×	0.24×	-0.07×	-6.43×	-7.48×	0×	0×	-0.21×
Dividend yield	19.2%	24.5%	27.5%	33.9%	18.3%	24.6%	12.9%	15.2%
Payout ratio	105.5%	176.1%	-644.4%	-34.8%	-147.9%	-8.2%	74.5%	-331.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.7%	8.2%	-2.0%	-50.1%	-6.4%	-122.5%	12.4%	-3.1%
Return on invested capital	1.6%	1.1%	-0.3%	-6.6%	-1.0%	0.0%	0.0%	-0.2%
Return on assets	1.6%	1.1%	-0.3%	-7.9%	-1.1%	-19.4%	1.6%	-0.4%
Free cash flow yield	28.2%	42.5%	64.0%	47.4%	20.9%	30.5%	16.4%	19.7%
Earnings yield	18.2%	13.9%	-4.3%	-97.4%	-12.4%	-299.7%	17.4%	-4.6%
Enterprise value	$6.1B	$5.3B	$4.8B	$4.5B	$7.4B	$7.4B	$3.6B	$3.1B
Net debt / EBITDA	17.32×	15.53×	19.67×	-12.25×	-83.81×	0×	0×	0×
Cash conversion cycle (days)	27	-22	-466	-20	138	-4	90	-284