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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 : 7/10

vs
industry
vs
history
Cash to Debt 0.07
NSM's Cash to Debt is ranked lower than
51% of the 1365 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.30 vs. NSM: 0.07 )
NSM' s 10-Year Cash to Debt Range
Min: 0.01   Max: No Debt
Current: 0.07

Equity to Asset 0.10
NSM's Equity to Asset is ranked higher than
76% of the 1753 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.09 vs. NSM: 0.10 )
NSM' s 10-Year Equity to Asset Range
Min: 0.06   Max: 0.27
Current: 0.1

0.06
0.27
Interest Coverage 0.64
NSM's Interest Coverage is ranked higher than
58% of the 1622 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.27 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: 4
Z-Score: 0.64
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 (%) 11.52
NSM's Operating margin (%) is ranked higher than
55% of the 1776 Companies
in the Global Specialty Finance industry.

( Industry Median: 28.81 vs. NSM: 11.52 )
NSM' s 10-Year Operating margin (%) Range
Min: -131.48   Max: 32.21
Current: 11.52

-131.48
32.21
Net-margin (%) 7.35
NSM's Net-margin (%) is ranked higher than
54% of the 1783 Companies
in the Global Specialty Finance industry.

( Industry Median: 21.59 vs. NSM: 7.35 )
NSM' s 10-Year Net-margin (%) Range
Min: -131.5   Max: 23.91
Current: 7.35

-131.5
23.91
ROE (%) 12.03
NSM's ROE (%) is ranked higher than
88% of the 1790 Companies
in the Global Specialty Finance industry.

( Industry Median: 8.54 vs. NSM: 12.03 )
NSM' s 10-Year ROE (%) Range
Min: -3.81   Max: 39.52
Current: 12.03

-3.81
39.52
ROA (%) 0.92
NSM's ROA (%) is ranked higher than
79% of the 1790 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.79 vs. NSM: 0.92 )
NSM' s 10-Year ROA (%) Range
Min: -0.61   Max: 4.61
Current: 0.92

-0.61
4.61
ROC (Joel Greenblatt) (%) 11.43
NSM's ROC (Joel Greenblatt) (%) is ranked higher than
55% of the 1757 Companies
in the Global Specialty Finance industry.

( Industry Median: 72.81 vs. NSM: 11.43 )
NSM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2.11   Max: 14.72
Current: 11.43

-2.11
14.72
» NSM's 10-Y Financials

Financials


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

» Details

Guru Trades

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%)
Louis Moore Bacon 400,000 sh (unchged)
Steven Cohen 100,000 sh (unchged)
Louis Moore Bacon Sold Out
Arnold Van Den Berg Sold Out
» More
Q1 2014

NSM Guru Trades in Q1 2014

Louis Moore Bacon 25,000 sh (New)
Kyle Bass 4,829,825 sh (+344.88%)
Diamond Hill Capital 500,971 sh (+21.16%)
Steven Cohen 100,000 sh (unchged)
Steven Cohen Sold Out
Paul Tudor Jones Sold Out
Joel Greenblatt 8,974 sh (-21.27%)
» More
Q2 2014

NSM Guru Trades in Q2 2014

Paul Tudor Jones 7,018 sh (New)
Diamond Hill Capital 528,151 sh (+5.43%)
Louis Moore Bacon Sold Out
Joel Greenblatt Sold Out
Kyle Bass 4,679,038 sh (-3.12%)
» More
» Details

Insider Trades

Latest Guru Trades with NSM

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 Sold Out $28.93 - $37.7 $ 33.311%0
Joel Greenblatt 2014-03-31 Reduce -21.27%$26.26 - $36.96 $ 33.318%8974
Arnold Van Den Berg 2013-12-31 Sold Out 1.9%$36.06 - $55.14 $ 33.31-26%0
Joel Greenblatt 2013-12-31 New Buy0.01%$36.06 - $55.14 $ 33.31-26%11398
Arnold Van Den Berg 2013-03-31 Add 206.5%0.86%$30.98 - $42.01 $ 33.31-10%351176
Arnold Van Den Berg 2012-12-31 New Buy0.39%$23.75 - $36.13 $ 33.319%114575
Ken Heebner 2012-12-31 Sold Out 0.13%$23.75 - $36.13 $ 33.319%0
John Keeley 2012-12-31 Sold Out 0.03%$23.75 - $36.13 $ 33.319%0
Ken Heebner 2012-09-30 New Buy0.13%$21.9 - $33.55 $ 33.3127%160000
John Keeley 2012-06-30 New Buy0.02%$13.49 - $21.46 $ 33.31102%40000
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Guru Investment Theses on Nationstar Mortgage Holdings Inc

Diamond Hill Capital Comments on Nationstar Mortgage Holdings Inc - Jun 26, 2014

Shares of investment manager Fortress Investment Group LLC declined during the quarter as Nationstar Mortgage Holdings, Inc. (NSM), one of the firm’s larger private equity holdings, performed poorly. In addition, the firm’s macro hedge fund has experienced disappointing near-term results.



From Diamond Hill Capital's Select Fund Commentary – First Quarter 2014.



Check out Diamond Hill Capital latest stock trades

Top Ranked Articles about Nationstar Mortgage Holdings Inc

Diamond Hill Capital Comments on Nationstar Mortgage Holdings Inc
Shares of investment manager Fortress Investment Group LLC declined during the quarter as Nationstar Mortgage Holdings, Inc. (NSM), one of the firm’s larger private equity holdings, performed poorly. In addition, the firm’s macro hedge fund has experienced disappointing near-term results. Read more...
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...

Ratios

vs
industry
vs
history
P/E(ttm) 25.70
NSM's P/E(ttm) is ranked higher than
62% of the 1927 Companies
in the Global Specialty Finance industry.

( Industry Median: 14.50 vs. NSM: 25.70 )
NSM' s 10-Year P/E(ttm) Range
Min: 9.87   Max: 27.91
Current: 25.7

9.87
27.91
P/B 2.92
NSM's P/B is ranked higher than
54% of the 1927 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.13 vs. NSM: 2.92 )
NSM' s 10-Year P/B Range
Min: 2.04   Max: 5.04
Current: 2.92

2.04
5.04
P/S 1.82
NSM's P/S is ranked higher than
88% of the 1927 Companies
in the Global Specialty Finance industry.

( Industry Median: 2.97 vs. NSM: 1.82 )
NSM' s 10-Year P/S Range
Min: 1.45   Max: 4.28
Current: 1.82

1.45
4.28
PFCF 7.40
NSM's PFCF is ranked higher than
89% of the 1927 Companies
in the Global Specialty Finance industry.

( Industry Median: 98.89 vs. NSM: 7.40 )
NSM' s 10-Year PFCF Range
Min: 6.35   Max: 8.04
Current: 7.4

6.35
8.04
EV-to-EBIT 59.74
NSM's EV-to-EBIT is ranked higher than
59% of the 1927 Companies
in the Global Specialty Finance industry.

( Industry Median: 17.23 vs. NSM: 59.74 )
NSM' s 10-Year EV-to-EBIT Range
Min: 23.7   Max: 61.4
Current: 59.74

23.7
61.4

Valuation & Return

vs
industry
vs
history
Price/Median PS Value 0.71
NSM's Price/Median PS Value is ranked higher than
96% of the 1927 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.08 vs. NSM: 0.71 )
NSM' s 10-Year Price/Median PS Value Range
Min: 0.63   Max: 1.53
Current: 0.71

0.63
1.53
Earnings Yield (Greenblatt) 1.70
NSM's Earnings Yield (Greenblatt) is ranked higher than
51% of the 1692 Companies
in the Global Specialty Finance industry.

( Industry Median: 7.00 vs. NSM: 1.70 )
NSM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.6   Max: 4.2
Current: 1.7

1.6
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
» More Articles for NSM

Headlines

Articles On GuruFocus.com
Diamond Hill Capital Comments on Nationstar Mortgage Holdings Inc Jun 26 2014 
Kyle Bass Makes Contrarian Bet on Nationstar Mortgage Mar 18 2014 
Kyle Bass Makes Contrarian Bet on Nationstar Mortgage Mar 18 2014 
Kyle Bass and Paul Singer Top Guru Buys of the Week Mar 18 2014 
Kyle Bass Thinks that a Nonbank Mortgage Servicer Is More Effective than Banks Mar 17 2014 
Kyle Bass of Hayman Capital Talks About Merit of Nationstar Mortgage, Increased Stake Mar 14 2014 
Hayman Advisors Update - Second Quarter Sells and Company Results Aug 26 2013 
Kyle Bass Increases Two Largest Positions May 17 2013 
comment on NSM Apr 26 2013 
Century’s Arnold Van Den Berg Releases Q4 Portfolio Updates, Biggest Buys Jan 09 2013 

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