Should you buy Capstead Mortgage Corporation stock? (NYSE:CMO). Let's see how it does in our automated value investing analysis system.
Based on historical returns, we believe that Capstead Mortgage Corporation can grow its free cash at a rate of about 0%. That's positive!
(Capstead Mortgage Corporation stock price per share)
||CMO Fair Price
(based on intrinsic value)
|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||330% higher than other REIT - Residential stocks|
|Free Cash Flow Jitter||39%|
|Dividend Yield||10%||Shares Shorted||3,523,799|
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 3,523,799 shares shorted. With 94,333,049 shares available for purchase and an average trading volume over the past 10 trading days of 1,242,757, it would take at least 2.835 days for all of the short holders to cover their shorts.
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).
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.
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