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Annaly Capital Management has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Annaly Capital Management Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Annaly Capital Management's interest coverage with the available data.
Annaly Capital Management's debt to revenue ratio for the quarter that ended in Jun. 2026 was 10.65.
Altman Z-Score does not apply to banks and insurance companies.
Annaly Capital Management (FRA:AAYA) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Annaly Capital Management has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Annaly Capital Management Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Annaly Capital Management (FRA:AAYA) has a Financial Strength of 1 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Annaly Capital Management and its competitors. This is 67% below median its historical median of 3.00. Over the past decade, Annaly Capital Management's Financial Strength has ranged from 1.00 to 6.00.
Is Annaly Capital Management's Financial Strength too high?
Annaly Capital Management's current Financial Strength of 1 is 67% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 6.00. Overall, Annaly Capital Management has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Annaly Capital Management's Financial Strength compare to AGNC and STWD?
Annaly Capital Management's Financial Strength of 1 can be compared against companies in the REITs industry. Historically, Annaly Capital Management's own Financial Strength has ranged from 1.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Annaly Capital Management and its competitors. Annaly Capital Management's current Financial Strength is 1, which is 67% below median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Annaly Capital Management stock overvalued right now?
Annaly Capital Management (FRA:AAYA) has a current Financial Strength of 1. The current Financial Strength is 1, which is 67% below median its 10-year median of 3.00. Annaly Capital Management's overall GF Score™ is 26/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Annaly Capital Management (FRA:AAYA), the current Financial Strength is 1 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Annaly Capital Management Inc is an American mortgage real estate investment trust. Its business objective is to generate net income for distribution to its stockholders and optimize its returns through prudent management of its diversified investment strategies. The company's reportable operating segments are: the Agency segment, which invests in Agency mortgage-backed securities collateralized by residential mortgages; the Residential Credit segment, which invests in non-Agency residential whole loans and securitized products within the residential and commercial markets; the Mortgage Servicing Rights segment; and Corporate & Other. Maximum revenue for the company is generated from its Agency segment.
26GF Score
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