MFA Financial, Inc. 9.000% Senior Notes (MFAO) 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

-1160.0%

-$71.71

vs $6.77 price

Levered DCF

-$93.77

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-0

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	5.44×	12.28×	24.5×	-3.83×	6.86×	-2.59×	9.53×	9.28×
P/B	0.53×	0.57×	0.61×	0.51×	0.79×	0.7×	1.02×	0.82×
P/S	1.1×	3.77×	4.92×	-15.03×	4.14×	-3.16×	7.96×	8.04×
EV / EBITDA	16.97×	80.66×	0×	206.77×	10.67×	0×	4,041.87×	11.62×
Gross margin	96.2%	87.4%	85.4%	163.4%	85.6%	100.0%	100.0%	67.4%
Operating margin	78.8%	228.1%	29.6%	331.3%	87.3%	0.0%	0.0%	153.5%
Net margin	20.2%	42.6%	34.3%	342.5%	67.3%	122.2%	87.3%	86.8%
Current ratio	2.18×	30.45×	2.09×	62.94×	2.07×	3.61×	50.44×	0.01×
Debt / equity	6.01×	4.99×	2.63×	3.45×	1.24×	0.73×	2.96×	0.23×
Interest coverage	1.34×	1.22×	0.16×	-0.87×	3.54×	0×	0×	2.3×
Dividend yield	4.2%	16.8%	15.3%	21.3%	9.4%	8.1%	10.9%	12.3%
Payout ratio	22.8%	148.2%	219.5%	-93.7%	57.5%	-21.1%	99.6%	114.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.7%	6.5%	4.2%	-11.6%	12.9%	-26.9%	11.2%	8.8%
Return on invested capital	5.4%	5.7%	3.3%	-2.5%	4.7%	0.0%	0.0%	-23.8%
Return on assets	1.4%	1.0%	0.7%	-2.5%	3.6%	-9.8%	2.8%	2.4%
Free cash flow yield	7.9%	19.0%	9.4%	36.0%	5.4%	1.9%	6.2%	5.2%
Earnings yield	18.3%	11.3%	7.0%	-22.8%	16.3%	-38.6%	11.0%	10.8%
Enterprise value	$11.7B	$9.9B	$5.8B	$7.5B	$4.9B	$2.8B	$13.4B	$3.5B
Net debt / EBITDA	15.57×	72.07×	0×	178.9×	6.24×	0×	3,002.1×	2.4×
Cash conversion cycle (days)	-347	11,512	-138	-42,404	-17	-26	6,273	751