Granite Point Price To Book vs. Price To Earning

GPMT Stock  USD 3.28  0.07  2.09%   
Based on Granite Point's profitability indicators, Granite Point Mortgage may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in January. Profitability indicators assess Granite Point's ability to earn profits and add value for shareholders. Price To Sales Ratio is likely to drop to 1.09 in 2024. Days Sales Outstanding is likely to drop to 16.11 in 2024. At this time, Granite Point's Income Tax Expense is comparatively stable compared to the past year. Net Interest Income is likely to gain to about 98.3 M in 2024, despite the fact that Net Loss is likely to grow to (53.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.870.9576
Moderately Down
Slightly volatile
For Granite Point profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Granite Point to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Granite Point Mortgage utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Granite Point's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Granite Point Mortgage over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Granite Point. If investors know Granite will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Granite Point listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.96)
Dividend Share
0.45
Earnings Share
(3.78)
Revenue Per Share
(2.76)
Quarterly Revenue Growth
0.827
The market value of Granite Point Mortgage is measured differently than its book value, which is the value of Granite that is recorded on the company's balance sheet. Investors also form their own opinion of Granite Point's value that differs from its market value or its book value, called intrinsic value, which is Granite Point's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Granite Point's market value can be influenced by many factors that don't directly affect Granite Point's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Granite Point's value and its price as these two are different measures arrived at by different means. Investors typically determine if Granite Point is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Granite Point's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Granite Point Mortgage Price To Earning vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Granite Point's current stock value. Our valuation model uses many indicators to compare Granite Point value to that of its competitors to determine the firm's financial worth.
Granite Point Mortgage is rated below average in price to book category among its peers. It is rated # 4 in price to earning category among its peers reporting about  151.16  of Price To Earning per Price To Book. Comparative valuation analysis is a catch-all technique that is used if you cannot value Granite Point by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Granite Price To Earning vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Granite Point

P/B

 = 

MV Per Share

BV Per Share

 = 
0.25 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Granite Point

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
37.88 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Granite Price To Earning Comparison

Granite Point is currently under evaluation in price to earning category among its peers.

Granite Point Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Granite Point, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Granite Point will eventually generate negative long term returns. The profitability progress is the general direction of Granite Point's change in net profit over the period of time. It can combine multiple indicators of Granite Point, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-506 K-531.3 K
Operating Income121.9 M73.7 M
Net Loss-56 M-53.2 M
Income Before Tax-63.1 M-59.9 M
Total Other Income Expense Net-185 M-175.7 M
Net Loss-49.8 M-47.3 M
Net Loss-63.2 M-60 M
Income Tax Expense95 K115.6 K
Net Interest Income85.7 M98.3 M
Interest Income263.7 M208.9 M
Non Operating Income Net Other-80 M-76 M
Change To Netincome10 M10.5 M
Net Loss(1.22)(1.16)
Income Quality(0.82)(0.78)
Net Income Per E B T 1.00  0.77 

Granite Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Granite Point. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Granite Point position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Granite Point's important profitability drivers and their relationship over time.

Use Granite Point in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Granite Point position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Granite Point will appreciate offsetting losses from the drop in the long position's value.

Granite Point Pair Trading

Granite Point Mortgage Pair Trading Analysis

The ability to find closely correlated positions to Granite Point could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Granite Point when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Granite Point - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Granite Point Mortgage to buy it.
The correlation of Granite Point is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Granite Point moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Granite Point Mortgage moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Granite Point can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Granite Point position

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Additional Tools for Granite Stock Analysis

When running Granite Point's price analysis, check to measure Granite Point's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Granite Point is operating at the current time. Most of Granite Point's value examination focuses on studying past and present price action to predict the probability of Granite Point's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Granite Point's price. Additionally, you may evaluate how the addition of Granite Point to your portfolios can decrease your overall portfolio volatility.