MFA Financial, Inc. (MFAN) stock analysis

MFANNYSEReal Estate Investment TrustsFiscal year ends December 31Also trades as MFA, MFA.PB, MFA.PC, MFAO

Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 5, 2026Score 13/3059% below fair value

$24.52−0.20 (-0.81%)

Close on Nov 2, 2026Market cap $685.38MP/E 6.6Yield 21.24%

StockData Score

Prices as of Oct 30, 2026How the score works

Mixed13 of 30 checks passed

MFA Financial passes 13 of the 30 checks behind our score; 13 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 59.5% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $6.66 is below our fair value estimate of $16.44.
No debt
MFA Financial 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 8.2% over the last twelve months and averaged 4.6% over five years; we look for 15% on both.
Elevated bankruptcy risk
The Altman Z-score is -0.17; above 3 is the safe zone and below 1.8 the distress zone.
Not covered by earnings
Dividends take 102% of net income, leaving little room.
Dividend was cut
The dividend per share fell by more than 10% at least once in the last 8 fiscal years.

Valuation5/6

P/E below its 5-year median
MFA Financial's P/E of 6.5 is below its own 5-year median of 10.4.
P/E below the industry
MFA Financial's P/E of 6.5 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
MFA Financial's price-to-book of 0.38 is below the Miscellaneous Investing median of 1.20.
Trading below fair value
The share price of $6.66 is below our fair value estimate of $16.44.
Margin of safety over 20%
The price is 59.5% 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 8.2% over the last twelve months and averaged 4.6% 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
MFA Financial's return on equity of 8.2% 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
MFA Financial 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 -0.17; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

Pays a dividend
MFA Financial paid dividends worth 21.6% of the share price over the last twelve months.
Yield above Treasuries
The 21.6% 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; MFA Financial yields 21.6%.
Dividend was cut
The dividend per share fell by more than 10% at least once in the last 8 fiscal years.
Not covered by earnings
Dividends take 102% of net income, leaving little room.
Cash-flow cover
Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$16.44

The share price is 59% below this estimate.

20%+ below

Near fair value

20%+ above

$6.66Price$16.44Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	17.7×	10.4×	25.0×	$18.05	62%
P/B	0.9×	0.6×	1.2×	$15.40	15%
Earnings power	9.9% cost of equity	–	–	$12.84	23%
Fair value				$16.44	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 10.4
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

Medium risk

Average value traded per day: $18.08M
Value traded per 1% price move: $12.56M

Downside

Medium risk

Typical loss in a bad month: 21.2%
Volatility (annualized): 23%
Sharpe ratio, 1 year: -1.29
Beta to the S&P 500 (5Y): 0.98

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
Net income	+48.2%	–	–	-5.6%
EPS, diluted	+58.5%	–	–	-8.6%
Dividend per share	+2.9%	-4.8%	+23.6%	–

Returns and balance sheet

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

Measure	FY2016	FY2020	FY2025
Return on equity	10.4%	-23.0%	9.6%
Return on assets	2.4%	-6.6%	1.4%
Capex to revenue	0.2%	–	–
Diluted shares	93M	113M	104M

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin64.2%

Asset turnover0.05×

Equity multiplier3.82×

Return on equity, FY201911.1%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2019	64.2%	0.05×	3.82×	11.1%
FY2018	79.1%	0.03×	3.50×	9.0%
FY2017	81.8%	0.03×	3.72×	10.2%
FY2016	83.9%	0.03×	4.27×	10.4%