Ladder Capital Corp (NYSE: LADR)

Sector: Real Estate Industry: REIT - Mortgage CIK: 0001577670
Market Cap 1.29 Bn
P/B 0.87
P/E 20.14
P/S 6.00
ROIC (Qtr) 1.45
Div Yield % 8.96
Rev 1y % (Qtr) -26.40
Total Debt (Qtr) 3.51 Bn
Debt/Equity (Qtr) 2.37

About

Ladder Capital Corp, a real estate investment trust (REIT) with the ticker symbol LADR, operates in the commercial real estate finance industry. The company's primary business activities include originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate, owning and operating commercial real estate, and investing in investment-grade securities secured by first mortgage loans on commercial real estate. Ladder Capital Corp's main business activities involve the origination of senior first mortgage loans,...

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Price action

Investment thesis

Bull case

  • Strong free cash flow of 91.76M provides 1.27x coverage of SG&A expenses 72.16M, indicating efficient cost management.
  • Free cash flow of 91.76M provides solid 1.20x coverage of operating expenses 76.18M, showing operational efficiency.

Bear case

  • Operating cash flow of 87.02M barely covers its investment activities of (1.61B), with a coverage ratio of -0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 87.02M provides thin coverage of dividend payments of (117.41M) with a -0.74 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 52.84M provide limited coverage of acquisition spending of (25.96M), which is -2.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 87.02M shows concerning coverage of stock compensation expenses of 20.33M, with a 4.28 ratio indicating potential earnings quality issues.
  • Free cash flow of 91.76M provides weak coverage of capital expenditures of (4.74M), with a -19.37 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the REIT - Mortgage
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RITM Rithm Capital Corp. 5.56 Bn 7.15 1.12 34.97 Bn
2 STWD Starwood Property Trust, Inc. 5.05 Bn 11.75 4.20 21.43 Bn
3 AGNC AGNC Investment Corp. 4.13 Bn 1.40 1.31 95.01 Bn
4 NLY Annaly Capital Management Inc 3.69 Bn 2.21 1.94 107.02 Bn
5 LADR Ladder Capital Corp 1.29 Bn 20.14 6.00 3.51 Bn
6 MFA Mfa Financial, Inc. 0.89 Bn 3.03 2.45 9.84 Bn
7 CIM Chimera Investment Corp 0.84 Bn 8.08 1.54 12.22 Bn
8 BRSP BrightSpire Capital, Inc. 0.75 Bn -1.47 2.08 2.17 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.82 0.56
EV to Cash from Ops. EV/CFO 48.57 45.88
EV to Debt EV to Debt 1.20 0.87
EV to EBIT EV/EBIT 62.46 187.98
EV to EBITDA EV/EBITDA 42.62 120.37
EV to Free Cash Flow [EV/FCF] EV/FCF 46.07 56.42
EV to Market Cap EV to Market Cap 3.27 25.15
EV to Revenue EV/Rev 19.61 56.50
Price to Book Value [P/B] P/B 0.87 0.71
Price to Earnings [P/E] P/E 20.14 4.95
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.55 -0.57
Dividend Payout Ratio % Div Payout % (Qtr) 180.40 33.95
Dividend per Basic Share Div per Share (Qtr) 0.92 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 125.85 52.50
Interest Coverage Interest Coverage 0.00 -0.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -95.05 34.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -96.05 21.41
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 4.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -40.71 14.33
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.75 7.56
EBIT Growth (1y) % EBIT 1y % (Qtr) -39.42 17.27
EBT Growth (1y) % EBT 1y % (Qtr) -39.42 7.46
EPS Growth (1y) % EPS 1y % (Qtr) -40.70 41.90
FCF Growth (1y) % FCF 1y % (Qtr) -60.06 60.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -20.58 16.78
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 1.43 0.90
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 2.37 5.05
Interest Cover Ratio Interest Cover Ratio 0.00 -0.17
Times Interest Earned Times Interest Earned 0.00 -0.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 46.20 136.11
EBIT Margin % EBIT Margin % (Qtr) 31.40 141.14
EBT Margin % EBT Margin % (Qtr) 31.40 128.11
Gross Margin % Gross Margin % (Qtr) 100.00 114.71
Net Profit Margin % Net Margin % (Qtr) 29.80 124.85