Switch to:

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 0.04
NSM's Cash to Debt is ranked lower than
56% of the 1254 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.36 vs. NSM: 0.04 )
NSM' s 10-Year Cash to Debt Range
Min: 0.01   Max: No Debt
Current: 0.04

Equity to Asset 0.09
NSM's Equity to Asset is ranked higher than
67% of the 1643 Companies
in the Global Specialty Finance industry.

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

0.06
0.27
Interest Coverage 0.64
NSM's Interest Coverage is ranked higher than
56% of the 1455 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.21 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: 0.28
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
61% of the 1599 Companies
in the Global Specialty Finance industry.

( Industry Median: 29.41 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
58% of the 1618 Companies
in the Global Specialty Finance industry.

( Industry Median: 21.45 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 1620 Companies
in the Global Specialty Finance industry.

( Industry Median: 8.17 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 1621 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
94% of the 1574 Companies
in the Global Specialty Finance industry.

( Industry Median: 73.99 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

Q2 2013

NSM Guru Trades in Q2 2013

Louis Moore Bacon 150,000 sh (New)
Diamond Hill Capital 231,115 sh (New)
Steven Cohen 19,921 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

Kyle Bass 1,085,638 sh (New)
Joel Greenblatt 11,398 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)
Arnold Van Den Berg Sold Out
Louis Moore Bacon 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
» Details

Insider Trades

Latest Guru Trades with NSM

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-03-31 Reduce -21.27%$26.26 - $36.96 $ 32.866%8974
Arnold Van Den Berg 2013-12-31 Sold Out 1.9%$36.06 - $55.14 $ 32.86-27%0
Joel Greenblatt 2013-12-31 New Buy0.01%$36.06 - $55.14 $ 32.86-27%11398
Arnold Van Den Berg 2013-03-31 Add 206.5%0.86%$30.98 - $42.01 $ 32.86-12%351176
Arnold Van Den Berg 2012-12-31 New Buy0.39%$23.75 - $36.13 $ 32.867%114575
John Keeley 2012-12-31 Sold Out 0.03%$23.75 - $36.13 $ 32.867%0
John Keeley 2012-06-30 New Buy0.02%$13.49 - $21.46 $ 32.86100%40000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

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...
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...

Ratios

vs
industry
vs
history
P/E(ttm) 16.70
NSM's P/E(ttm) is ranked higher than
70% of the 1834 Companies
in the Global Specialty Finance industry.

( Industry Median: 15.40 vs. NSM: 16.70 )
NSM' s 10-Year P/E(ttm) Range
Min: 9.87   Max: 22.54
Current: 16.7

9.87
22.54
P/B 3.00
NSM's P/B is ranked higher than
53% of the 1834 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.15 vs. NSM: 3.00 )
NSM' s 10-Year P/B Range
Min: 2.04   Max: 5.04
Current: 3

2.04
5.04
P/S 1.70
NSM's P/S is ranked higher than
89% of the 1834 Companies
in the Global Specialty Finance industry.

( Industry Median: 3.10 vs. NSM: 1.70 )
NSM' s 10-Year P/S Range
Min: 1.45   Max: 4.28
Current: 1.7

1.45
4.28
EV-to-EBIT 42.11
NSM's EV-to-EBIT is ranked higher than
60% of the 1834 Companies
in the Global Specialty Finance industry.

( Industry Median: 18.41 vs. NSM: 42.11 )
NSM' s 10-Year EV-to-EBIT Range
Min: 23.7   Max: 48
Current: 42.11

23.7
48

Valuation & Return

vs
industry
vs
history
Price/Median PS Value 0.60
NSM's Price/Median PS Value is ranked higher than
96% of the 1834 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.11 vs. NSM: 0.60 )
NSM' s 10-Year Price/Median PS Value Range
Min: 0.6   Max: 1.46
Current: 0.6

0.6
1.46
Earnings Yield (Greenblatt) 2.40
NSM's Earnings Yield (Greenblatt) is ranked higher than
50% of the 1581 Companies
in the Global Specialty Finance industry.

( Industry Median: 6.90 vs. NSM: 2.40 )
NSM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.1   Max: 4.2
Current: 2.4

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
» 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 

More From Other Websites
Nationstar Schedules Second Quarter 2014 Earnings Investor Call for August 6, 2014 Jul 23 2014
Nationstar Schedules Second Quarter 2014 Earnings Investor Call for August 6, 2014 Jul 23 2014
Making Money On Mortgages Gets Tough Jul 17 2014
Why Nationstar Mortgage Holdings (NSM) Stock Is Falling Today Jul 16 2014
Why mortgage originators are moving out on the risk curve Jul 16 2014
Nationstar, Walter Investment downgraded to Underperform at Wells Fargo Jul 16 2014
NATIONSTAR MORTGAGE HOLDINGS INC. Files SEC form 8-K, Change in Directors or Principal Officers,... Jul 08 2014
Consider KB Home’s background before looking at its 2Q14 earnings Jul 07 2014
Larry D. Zimpleman, the Chairman, President and CEO of Principal Financial Group, Inc. (PFG),... Jul 07 2014
[$$] Nationstar Temporarily Restricted in Servicing Mortgages Last Year Jul 01 2014
Nonbank Servicers Pose Fannie-Freddie Risk, Says Audit Jun 30 2014
KB Home: First Time Home Buyers And Margins Deliver A Sustained Post-Earnings Kick Jun 29 2014
NATIONSTAR MORTGAGE HOLDINGS INC. Files SEC form 8-K, Other Events, Financial Statements and... Jun 25 2014
Nationstar to Redeem 10.875% Senior Notes Due 2015 Jun 25 2014
3 Real Estate Stocks Dragging The Industry Down Jun 24 2014
Nationstar investor plays for time Jun 16 2014
Mortgage applications make a surprising jump, rising 10% Jun 13 2014
Why mortgage rates rose as the 10-year bond sold off Jun 12 2014
Why the bipartisan mortgage compromise so far affects REITs Jun 12 2014
A key guide to the left-versus-right divide on housing policy Jun 11 2014

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide