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Capstead Mortgag has the Highest Debt to EBITDA Ratio in the Mortgage REITs Industry (CMO, ANH, AGNC, WMC, IVR)

By David Diaz

Below are the three companies in the Mortgage REITs industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Capstead Mortgag ranks highest with a a debt to EBITDA ratio of 50.7. Following is Anworth Mortgage with a a debt to EBITDA ratio of 38.5. Agnc Investment ranks third highest with a a debt to EBITDA ratio of 34.0.

Western Asset Mo follows with a a debt to EBITDA ratio of 33.3, and Invesco Mortgage rounds out the top five with a a debt to EBITDA ratio of 29.3.

SmarTrend recommended that its subscribers protect gains by selling shares of Anworth Mortgage on November 2nd, 2017 by issuing a Downtrend alert when the shares were trading at $5.58. Since that call, shares of Anworth Mortgage have fallen 24.7%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio capstead mortgag anworth mortgage agnc investment western asset mo invesco mortgage

Ticker(s): CMO ANH AGNC WMC IVR