Dynex Stock Story

DX
 Stock
  

USD 16.44  0.15  0.92%   

As many millenniums are trying to avoid real estate space, it makes sense to break down Dynex Capital a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is the firm operations in 2022 sustainable? Here we are going to cover Dynex Capital perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a week ago
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The impact of current bullish trends on Dynex Capital (NYSE:DX)

The company reports 2.97 B of total liabilities with total debt to equity ratio (D/E) of 3.78, which may imply that Dynex Capital relies heavily on debt financing.
Our trade advice tool can cross-verify current analyst consensus on Dynex Capital and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Dynex Capital using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Dynex Capital based exclusively on its fundamental and basic technical indicators. By analyzing Dynex Capital's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Dynex Capital's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Dynex Capital. We calculate exposure to Dynex Capital's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Dynex Capital's related companies.

Dynex Capital Investment Alerts

Dynex investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Dynex Capital performance across your portfolios.Please check all investment alerts for Dynex

Dynex Capital Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Dynex value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Dynex Capital competition to find correlations between indicators driving the intrinsic value of Dynex.

How does Dynex utilize its cash?

To perform a cash flow analysis of Dynex Capital, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Dynex Capital is receiving and how much cash it distributes out in a given period. The Dynex Capital cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Dynex Capital Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Dynex Capital reported Net Cash Flow from Operations of 146.97 Million in 2021

Dynex Capital exotic insider transaction detected

Legal trades by Dynex Capital insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Dynex insider trading alert for general transaction of common stock by Smriti Popenoe, President and Co-CIO, on 31st of May 2022. This event was filed by Dynex Capital Inc with SEC on 2022-05-31. Statement of changes in beneficial ownership - SEC Form 4. Smriti Popenoe currently serves as executive vice president, chief investment officer of Dynex Capital [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Dynex Capital generated the yearly revenue of 128.55 M. Reported Net Income was 93.85 M with gross profit of 127.69 M.

Margins Breakdown

Dynex profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Dynex Capital itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Dynex Capital profit margins.
Operating Margin48.55
EBITDA Margin2.14
Gross Margin0.89
Profit Margin0.72


Dynex Capital Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Dynex Capital Earnings Before Interest Taxes and Depreciation Amortization USD was 214,135,053. Also, Dynex Capital Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment.

Our perspective of the current Dynex Capital slide

Jensen alpha is down to 0.28. It may suggest a possible volatility slide.
As of the 25th of July, Dynex Capital shows the Mean Deviation of 1.39, downside deviation of 2.09, and Coefficient Of Variation of 1198.37. Dynex Capital technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed and interpolated nineteen technical drivers for Dynex Capital, which can be compared to its rivals. Please confirm Dynex Capital coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Dynex Capital is priced favorably, providing market reflects its regular price of 15.95 per share. Given that Dynex Capital has jensen alpha of 0.2813, we urge you to verify Dynex Capital's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While many of the other players in the reit—mortgage industry are either recovering or due for a correction, Dynex Capital may not be performing as strong as the other in terms of long-term growth potentials. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Dynex as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Dynex Capital.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Dynex Capital. Please refer to our Terms of Use for any information regarding our disclosure principles.

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