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Shares of Owens Realty Mor Rank the Highest in Terms of Debt to EBITDA Ratio in the Mortgage REITs Industry (ORM, CMO, RSO, WMC, ANH)

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.

Owens Realty Mor ranks highest with a a debt to EBITDA ratio of 267.2. Following is Capstead Mortgag with a a debt to EBITDA ratio of 63.7. Resource Capital ranks third highest with a a debt to EBITDA ratio of 58.3.

Western Asset Mo follows with a a debt to EBITDA ratio of 35.6, and Anworth Mortgage rounds out the top five with a a debt to EBITDA ratio of 35.1.

SmarTrend recommended that subscribers consider buying shares of Anworth Mortgage on February 17th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $4.47. Since that recommendation, shares of Anworth Mortgage have risen 36.5%. We continue to monitor Anworth Mortgage for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio nyse:orm owens realty mor capstead mortgag resource capital nyse:wmc western asset mo anworth mortgage

Ticker(s): CMO RSO ANH