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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.05
NSM's Cash to Debt is ranked lower than
56% of the 1272 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.10 vs. NSM: 0.05 )
NSM' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.05
Current: 0.05

0.02
0.05
Equity to Asset 0.07
NSM's Equity to Asset is ranked higher than
50% of the 1588 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.10 vs. NSM: 0.07 )
NSM' s 10-Year Equity to Asset Range
Min: 0.07   Max: 0.21
Current: 0.07

0.07
0.21
Interest Coverage 0.64
NSM's Interest Coverage is ranked higher than
57% of the 1357 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.13 vs. NSM: 0.64 )
NSM' s 10-Year Interest Coverage Range
Min: 0.2   Max: 1.4
Current: 0.64

0.2
1.4
F-Score: 1
Z-Score: 0.25
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 19.80
NSM's Operating margin (%) is ranked higher than
59% of the 1462 Companies
in the Global Specialty Finance industry.

( Industry Median: 30.05 vs. NSM: 19.80 )
NSM' s 10-Year Operating margin (%) Range
Min: -131.48   Max: 32.21
Current: 19.8

-131.48
32.21
Net-margin (%) 12.41
NSM's Net-margin (%) is ranked higher than
57% of the 1570 Companies
in the Global Specialty Finance industry.

( Industry Median: 20.57 vs. NSM: 12.41 )
NSM' s 10-Year Net-margin (%) Range
Min: -131.5   Max: 23.91
Current: 12.41

-131.5
23.91
ROE (%) 22.04
NSM's ROE (%) is ranked higher than
98% of the 1554 Companies
in the Global Specialty Finance industry.

( Industry Median: 7.99 vs. NSM: 22.04 )
NSM' s 10-Year ROE (%) Range
Min: -30.66   Max: 27.09
Current: 22.04

-30.66
27.09
ROA (%) 1.55
NSM's ROA (%) is ranked higher than
93% of the 1563 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.75 vs. NSM: 1.55 )
NSM' s 10-Year ROA (%) Range
Min: -6.32   Max: 2.88
Current: 1.55

-6.32
2.88
ROC (Joel Greenblatt) (%) 290.52
NSM's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 1437 Companies
in the Global Specialty Finance industry.

( Industry Median: 78.30 vs. NSM: 290.52 )
NSM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -10.98   Max: 290.52
Current: 290.52

-10.98
290.52
» NSM's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

NSM Guru Trades in Q1 2013

Paul Tudor Jones 19,400 sh (New)
Arnold Van Den Berg 351,176 sh (+206.5%)
Kyle Bass 1,487,046 sh (+116.35%)
Caxton Associates Sold Out
Louis Moore Bacon Sold Out
» More
Q2 2013

NSM Guru Trades in Q2 2013

Steven Cohen 19,921 sh (New)
Louis Moore Bacon 150,000 sh (New)
Diamond Hill Capital 231,115 sh (New)
Paul Tudor Jones 20,400 sh (+5.15%)
Kyle Bass Sold Out
Arnold Van Den Berg 346,891 sh (-1.22%)
» More
Q3 2013

NSM Guru Trades in Q3 2013

Louis Moore Bacon 425,000 sh (+183.33%)
Diamond Hill Capital 387,665 sh (+67.74%)
Arnold Van Den Berg 342,713 sh (-1.2%)
Steven Cohen 6,895 sh (-65.39%)
Paul Tudor Jones 3,700 sh (-81.86%)
» More
Q4 2013

NSM Guru Trades in Q4 2013

Joel Greenblatt 11,398 sh (New)
Kyle Bass 1,085,638 sh (New)
Steven Cohen 19,000 sh (+175.56%)
Paul Tudor Jones 8,200 sh (+121.62%)
Diamond Hill Capital 413,480 sh (+6.66%)
Steven Cohen 100,000 sh (unchged)
Louis Moore Bacon 400,000 sh (unchged)
Louis Moore Bacon Sold Out
Arnold Van Den Berg Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with NSM

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Arnold Van Den Berg 2013-12-31 Sold Out 1.9%$36.06 - $55.14 $ 32.47-28%0
Joel Greenblatt 2013-12-31 New Buy0.01%$36.06 - $55.14 $ 32.47-28%11398
Arnold Van Den Berg 2013-03-31 Add 206.5%0.86%$30.98 - $42.01 $ 32.47-12%351176
Arnold Van Den Berg 2012-12-31 New Buy0.39%$23.75 - $36.13 $ 32.476%114575
John Keeley 2012-12-31 Sold Out 0.03%$23.75 - $36.13 $ 32.476%0
John Keeley 2012-06-30 New Buy0.02%$13.49 - $21.46 $ 32.4797%40000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

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Top Ranked Articles about Nationstar Mortgage Holdings Inc

Kyle Bass Makes Contrarian Bet on Nationstar Mortgage
Kyle Bass (Trades, Portfolio) of management firm Hayman Advisors often takes large positions in companies facing temporary setbacks or another unusual event but that have potential for future growth. His most recent play involves Nationstar Mortgage Holdings Inc. (NSM), which he recently increased. Read more...
Hayman Advisors Update - Second Quarter Sells and Company Results
Returning 340% in his firm’s first four years earned Guru Kyle Bass a reputation fast. He is also well known for his analysis of the subprime crisis when he made around a half a billion dollars betting against subprime CDOs. His company, Hayman Capital Management, is an asset management firm based in Dallas, Texas, founded in 2005. The updated portfolio of Hayman Advisors lists 6 stocks, 1 of them new, with a total value of $38 million, and a quarter-over-quarter turnover of 45%. The portfolio is heavily weighted with consumer cyclical at 39.3%. Read more...
Kyle Bass Increases Two Largest Positions
Guru Kyle Bass first caught investors’ eyes when he made $500 million by shorting the housing bubble. In a recent interview with Bloomberg, Bass also indicates that 90% of his portfolio is actually long things such as structured mortgages, housing and U.S. stocks. The president and founder of Hyman Capital Management in Dallas bought one new stock, increased two of his current stocks, decreased one and sold out of six in the first quarter of 2013. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 13.70
NSM's P/E(ttm) is ranked higher than
72% of the 1451 Companies
in the Global Specialty Finance industry.

( Industry Median: 13.60 vs. NSM: 13.70 )
NSM' s 10-Year P/E(ttm) Range
Min: 9.87   Max: 22.54
Current: 13.7

9.87
22.54
P/B 3.10
NSM's P/B is ranked lower than
69% of the 1479 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.10 vs. NSM: 3.10 )
NSM' s 10-Year P/B Range
Min: 2.04   Max: 5.04
Current: 3.1

2.04
5.04
P/S 1.68
NSM's P/S is ranked higher than
81% of the 1638 Companies
in the Global Specialty Finance industry.

( Industry Median: 2.80 vs. NSM: 1.68 )
NSM' s 10-Year P/S Range
Min: 1.45   Max: 4.28
Current: 1.68

1.45
4.28
EV-to-EBIT 37.00
NSM's EV-to-EBIT is ranked lower than
65% of the 1447 Companies
in the Global Specialty Finance industry.

( Industry Median: 15.51 vs. NSM: 37.00 )
NSM' s 10-Year EV-to-EBIT Range
Min: 23.6   Max: 48
Current: 37

23.6
48

Valuation & Return

vs
industry
vs
history
Price/Median PS Value 0.60
NSM's Price/Median PS Value is ranked higher than
93% of the 1493 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.00 vs. NSM: 0.60 )
NSM' s 10-Year Price/Median PS Value Range
Min: 0.65   Max: 1.06
Current: 0.6

0.65
1.06
Earnings Yield (Greenblatt) 2.70
NSM's Earnings Yield (Greenblatt) is ranked lower than
55% of the 1411 Companies
in the Global Specialty Finance industry.

( Industry Median: 6.40 vs. NSM: 2.70 )
NSM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.1   Max: 4.2
Current: 2.7

2.1
4.2

Business Description

Industry: Banks » Specialty Finance
Compare: » details
Traded in other countries:2NS.Germany
Nationstar Mortgage Holdings Inc., is a Delaware corporation formed in1994. It provides residential mortgage loan services. Its servicing portfolio consists of around 389,000 loans. It services residential mortgage loans throughout the United States. Loan servicing primarily involves the calculation, collection and remittance of principal and interest payments, the administration of mortgage escrow accounts, the collection of insurance claims, the administration of foreclosure procedures, the management of real estate owned and the disbursement of required advances. It utilizes a flexible, customer-centric mortgage servicing model that focuses on asset performance through increased personal contact with borrowers and loss mitigation tools designed to decrease borrower delinquencies and defaults and to increase borrower repayment performance with a goal of home ownership preservation. Its Servicing segment produces recurring, fee-based revenues based upon contractually established servicing fees. Servicing fees consist of an amount based on either the unpaid principal balance of the loans serviced or a per-loan fee amount and also include ancillary fees such as late fees. In addition, it earns interest income on amounts deposited in collection accounts and amounts held in escrow to pay property taxes and insurance, which it refers to as float income. It also generates incentive fees from owners of the loans that it services for meeting certain delinquency and loss goals and for arranging successful loss mitigation programs. Moreover, it earns incentive fees from the U.S. Treasury for loans that it successfully modifies within the parameters of the Home Affordable Modification Program (HAMP) and other assistance programs it sponsors. In addition to its Servicing business, it has successfully launched and recently expanded its complementary businesses that provides significant opportunity for incremental earnings and require minimal capital investment. It provides these services by leveraging its servicing expertise for its current clients for either a base and/or incentive fee. Following competitive strengths differentiate it from its competitors: Attractive Business Model with Strong Cash Flow, Scalable, Proven Platform Coupled with Asset Evaluation and Acquisition Expertise, Culture of Credit Loss Ownership and Accountability & Strong and Seasoned Management Team. Its primary goal is to grow its servicing portfolio by employing a high touch approach on the back-end to increase the value of its clients' loans by reducing delinquencies and credit losses, and operating the front-end with maximum efficiency through scale and technology. It plans to grow its revenue, operating cash flow and net income by employing the following business strategies: Capitalize on Industry Opportunities, Maintain and Grow its Fee-Based Servicing Portfolio, Engage in Opportunistic Acquisitions and New Business Opportunities & Continue To Expand its Adjac

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