Annaly Capital ManagementFRA:AAYA -0.71%24 ROE % is 7.03% as of Mar. 2026, which is 29% below its 10-year median of 9.92. GuruFocus rates FRA:AAYA with a GF Score™ of 24/100. The stock has 8 warning signs investors should review. Among 934 REITs companies, Annaly Capital Management ranks better than 87.69% on this metric.
The historical rank and industry rank for Annaly Capital Management's ROE % or its related term are showing as below:
FRA:AAYA'
s ROE % Range Over the Past 10 Years
Min: -14.59 Med: 9.92 Max: 17.59
Current: 14.84
During the past 13 years, Annaly Capital Management's highest ROE % was 17.59%. The lowest was -14.59%. And the median was 9.92%.
FRA:AAYA's ROE % is ranked better than 87.69% of 934
companies
in the REITs industry
Industry Median: 6.13
vs FRA:AAYA: 14.84
Annaly Capital Management (FRA:AAYA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the REIT - Mortgage subindustry, Annaly Capital Management's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Annaly Capital Management ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Annaly Capital Management's ROE % distribution charts can be found below:
* The bar in red indicates where Annaly Capital Management's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Annaly Capital Management (FRA:AAYA) has a ROE % of 7.03% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Annaly Capital Management and its competitors. This is 29% below median its historical median of 9.92. According to the industry distribution chart, Annaly Capital Management ranks #115 out of 934 companies in the REITs industry, placing it in the top 12.3%.
Is Annaly Capital Management's ROE % too high?
Annaly Capital Management's current ROE % of 7.03% is 29% below median its 10-year median of 9.92. The REITs industry median ROE % is 6.13. Annaly Capital Management's value of 7.03% is 14.7% above this industry median. Based on the distribution chart, Annaly Capital Management ranks #115 out of 934 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Annaly Capital Management has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Annaly Capital Management's ROE % compare to AGNC and STWD?
According to the REITs industry distribution chart, Annaly Capital Management ranks #115 out of 934 companies for ROE %. This places Annaly Capital Management in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 6.13. Annaly Capital Management's value of 7.03% is 14.7% above this benchmark. While the company's 10-year median is 9.92 vs. the industry median of 6.13, Annaly Capital Management has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a REITs company?
The median ROE % among REITs companies is 6.13, based on 934 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Annaly Capital Management's current ROE % of 7.03% is 14.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Annaly Capital Management and its competitors. For the REITs industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Annaly Capital Management's current ROE % is 7.03%, which is 29% below median its own 10-year median of 9.92. 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 ROE % of 7.03%. The current ROE % is 7.03%, which is 29% below median its 10-year median of 9.92 and 14.7% above the REITs industry median of 6.13. Annaly Capital Management's overall GF Score™ is 24/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Annaly Capital Management (FRA:AAYA), the current ROE % is 7.03% as of Mar. 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.
24GF Score
Get the complete analysis for FRA:AAYA
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:AAYA has been successfully added to your 
