Ladder Capital Corp (NYSE: LADR)

Sector: Real Estate Industry: REIT - Mortgage CIK: 0001577670
Market Cap 1.43 Bn
P/B 0.96
P/E 17.95
P/S 6.12
ROIC (Qtr) 1.84
Div Yield % 8.13
Rev 1y % (Qtr) -15.36
Total Debt (Qtr) 3.00 Bn
Debt/Equity (Qtr) 2.00

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,...

Read more

Price action

Investment thesis

Bull case

  • Operating cash flow of (18.46M) provides exceptional 35.92x coverage of minority interest expenses (514000), showing strong core operations.

Bear case

  • Operating cash flow of (18.46M) barely covers its investment activities of (871.68M), with a coverage ratio of 0.02, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (18.46M) provides thin coverage of dividend payments of (117.48M) with a 0.16 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of (18.46M) shows concerning coverage of stock compensation expenses of 19.50M, with a -0.95 ratio indicating potential earnings quality issues.
  • Free cash flow of 35.62M provides weak coverage of capital expenditures of (54.08M), with a -0.66 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (18.46M) provides minimal -3.33x coverage of tax expenses of 5.55M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the REIT - Mortgage
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NLY Annaly Capital Management Inc 13.98 Bn 10.42 8.17 107.02 Bn
2 AGNC AGNC Investment Corp. 11.44 Bn 16.65 30.74 95.01 Bn
3 STWD Starwood Property Trust, Inc. 6.55 Bn 17.88 3.63 21.43 Bn
4 RITM Rithm Capital Corp. 5.78 Bn 7.43 1.16 34.97 Bn
5 BXMT Blackstone Mortgage Trust, Inc. 3.36 Bn 31.37 6.62 15.46 Bn
6 ARR Armour Residential REIT, Inc. 1.83 Bn 34.78 15.64 16.56 Bn
7 DX Dynex Capital Inc 1.59 Bn 9.04 6.88 11.75 Bn
8 ABR Arbor Realty Trust Inc 1.50 Bn 9.84 2.84 10.40 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.86 0.83
EV to Cash from Ops. EV/CFO -217.97 -102.96
EV to Debt EV to Debt 1.34 1.31
EV to EBIT EV/EBIT 47.23 -260.73
EV to EBITDA EV/EBITDA 34.66 -16.37
EV to Free Cash Flow [EV/FCF] EV/FCF 113.00 3.47
EV to Market Cap EV to Market Cap 2.90 9.18
EV to Revenue EV/Rev 17.23 26.77
Price to Book Value [P/B] P/B 0.93 0.68
Price to Earnings [P/E] P/E 17.44 -4.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.68 -0.55
Dividend Payout Ratio % Div Payout % (Qtr) 146.00 29.47
Dividend per Basic Share Div per Share (Qtr) 0.92 1.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 323.94 57.60
Interest Coverage Interest Coverage 0.00 -0.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.91 37.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -96.12 24.22
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 4.53
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -17.09 17.83
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.92 9.86
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.30 20.98
EBT Growth (1y) % EBT 1y % (Qtr) -12.30 11.17
EPS Growth (1y) % EPS 1y % (Qtr) -17.11 59.25
FCF Growth (1y) % FCF 1y % (Qtr) -88.26 59.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.21 20.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.05 0.04
Cash Payout Ratio Cash Payout (Qtr) -1.62 0.83
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 2.00 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) 49.90 137.11
EBIT Margin % EBIT Margin % (Qtr) 36.48 142.19
EBT Margin % EBT Margin % (Qtr) 36.48 129.16
Gross Margin % Gross Margin % (Qtr) 100.00 117.97
Net Profit Margin % Net Margin % (Qtr) 34.10 125.89