Invesco Mortgage Capital Inc. (IVR.PC) stock analysis

IVR.PCNYSEReal Estate Investment TrustsFiscal year ends December 31Also trades as IVR

Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 5, 2026Score 13/3075% below fair value

$23.00−0.13 (-0.56%)

Close on Oct 30, 2026Market cap $571.57MP/E 3.6Yield –

StockData Score

Prices as of Oct 30, 2026How the score works

Mixed13 of 30 checks passed

Invesco Mortgage Capital passes 13 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 5/6
Growth: 0/6
Past performance: 1/6
Financial health: 4/6
Dividend: 3/6

What stands out

Margin of safety over 20%
The price is 75.0% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $5.31 is below our fair value estimate of $21.21.
No debt
Invesco Mortgage Capital has no borrowings on its latest balance sheet.
Interest well covered
No meaningful interest expense to cover.

What to watch

Return on equity under 15%
Return on equity was 14.1% over the last twelve months and averaged -4.8% over five years; we look for 15% on both.
Elevated bankruptcy risk
The Altman Z-score is -0.65; above 3 is the safe zone and below 1.8 the distress zone.

Valuation5/6

P/E below its 5-year median
Invesco Mortgage Capital's P/E of 3.6 is below its own 5-year median of 10.6.
P/E below the industry
Invesco Mortgage Capital's P/E of 3.6 is below the Miscellaneous Investing median of 25.0.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B below the industry
Invesco Mortgage Capital's price-to-book of 0.58 is below the Miscellaneous Investing median of 1.20.
Trading below fair value
The share price of $5.31 is below our fair value estimate of $21.21.
Margin of safety over 20%
The price is 75.0% below fair value, more than the 20% cushion we look for.

Growth0/6

Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growth against the industry
Needs revenue for this year and last.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.

Past performance1/6

Return on equity under 15%
Return on equity was 14.1% over the last twelve months and averaged -4.8% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Invesco Mortgage Capital's return on equity of 14.1% is above the Miscellaneous Investing median of 3.4%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.

Financial health4/6

No debt
Invesco Mortgage Capital has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Elevated bankruptcy risk
The Altman Z-score is -0.65; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

Pays a dividend
Invesco Mortgage Capital paid dividends worth 27.1% of the share price over the last twelve months.
Yield above Treasuries
The 27.1% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 4.0% or more; Invesco Mortgage Capital yields 27.1%.
Dividend stability
Fewer than five years of dividend history.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$21.21

The share price is 75% below this estimate.

20%+ below

Near fair value

20%+ above

$5.31Price$21.21Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	17.8×	10.6×	25.0×	$26.34	62%
P/B	0.9×	0.6×	1.2×	$8.18	15%
Earnings power	11.0% cost of equity	–	–	$16.24	23%
Fair value				$21.21	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Own 5-year median 10.6
Miscellaneous Investing median 25.0

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day: $21.46M
Value traded per 1% price move: $17.72M

Downside

Medium risk

Typical loss in a bad month: 18.5%
Volatility (annualized): 24%
Sharpe ratio, 1 year: -1.32
Beta to the S&P 500 (5Y): 1.21

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

–

Per year	1 year	3 years	5 years	10 years	Five-year pace
Net income	+69.1%	–	–	-1.1%
EPS, diluted	+103.1%	–	–	-15.8%

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2016	FY2020	FY2025
Return on equity	11.4%	-77.9%	13.3%
Return on assets	1.6%	-10.8%	1.7%
Diluted shares	13M	17M	67M