Capstead Mortgage Corporation Stock Price and Value Analysis

Should you buy Capstead Mortgage Corporation stock? (NYSE:CMO). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This stock is available at a great discount!
  • This company is solid.
  • This company has a large dividend yield!
  • This company is making money at a modest rate.
  • This company has wild ups and downs.

Inside the CMO Numbers

CMO Price
(Capstead Mortgage Corporation stock price per share)
$6.65
[?] CMO Fair Price
(based on intrinsic value)
$21.55
[?] CMO Safety Price (based on a variable margin of safety) $14.01
[?] PE Ratio versus Sector 2% higher than other Real Estate stocks
[?] PE Ratio versus Industry 85% lower than other REIT - Residential stocks
[?] Cash Yield 38.66%
[?] Free Cash Flow Jitter 52%
[?] Dividend Yield 9%
Shares Shorted 3,631,473

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 3,631,473 shares shorted. With 94,512,907 shares available for purchase and an average trading volume over the past 10 trading days of 604,012, it would take at least 6.012 days for all of the short holders to cover their shorts.

Is Capstead Mortgage Corporation Stock on Sale?

We believe that Capstead Mortgage Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Capstead Mortgage Corporation looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy CMO Stock?

Does Capstead Mortgage Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.