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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2796
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$1.6B
Byron L. Boston
Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. The company was incorporated in 1987 and is headquartered in Glen Allen, Virginia.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DX ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$DX DYNEX CAPITAL INC | 45 | 21 | 31 | 56 | 17.1x | 37.9x | 8.4% | 1.2% | 100.0% | 45.6% | 138.2% | -24.1% | 15.8% | 623.0x | $1.6B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
DYNEX CAPITAL INC (DX) receives a "Reduce" rating with a composite score of 45.0/100. It ranks #2796 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DX.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 21 | 2 | +19ALPHA |
| MOMENTUM | 56 | 59 | -3NEUTRAL |
| VALUATION | 31 | 24 | +7ALPHA |
| INVESTMENT | 18 | 1 | +17ALPHA |
| STABILITY | 74 | 83 | -9DRAG |
| SHORT INT | 79 | 89 | -10DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 0.1% vs WACC 2.5% (spread -2.4%)
GM 100% vs sector 78%, OM 46% vs sector 18%
Capital turnover 0.00x
Rev growth -24%, 10yr history
Interest coverage 0.2x, Net debt/EBITDA 619.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate DYNEX CAPITAL INC (DX) as a Reduce with a composite score of 45.0/100 at a current price of $13.96. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
DYNEX CAPITAL INC holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 45.0/100 places it at rank #2796 in our full universe.
No Moat
High
Poor
Fair Value
Gross margins of 100% signal strong pricing power.
Stable competitive position in a defensive sector.
Leverage of 623% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
DYNEX CAPITAL INC represents a reduce based on multi-factor quantitative performance.
DYNEX CAPITAL INC receives a Reduce rating from our analysis, with a composite score of 45.0/100 and 2 out of 5 stars, ranking #2796 out of 7,333 stocks. DX's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
DYNEX CAPITAL INC registers a weak quality score of just 21/100, indicating significant profitability challenges. The company reports a return on equity of 8.4% (sector avg: 9.0%), gross margins of 100.0% (sector avg: 77.7%), net margins of 138.2% (sector avg: 21.9%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
With a value score of 31/100, DX appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 17.12x, an EV/EBITDA of 37.88x, a P/B ratio of 1.44x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
DYNEX CAPITAL INC's investment score of 18/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -24.1% vs. a sector average of 10.7% and a return on assets of 1.2% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
DX demonstrates moderate momentum with a score of 56/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -24.1% year-over-year, while a beta of 0.48 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
DX shows good financial stability with a score of 74/100. Key stability metrics include a beta of 0.48 and a debt-to-equity ratio of 623.00x (sector avg: 0.5x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
DX carries a short interest score of 79/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 623.00x), small-cap liquidity risk. At $1.6B market cap (small-cap), DYNEX CAPITAL INC offers reasonable institutional liquidity.
DYNEX CAPITAL INC offers an attractive dividend yield of 15.8%, placing it among the higher-yielding stocks in its peer group. This compares to a sector average dividend yield of 2.0%. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
DYNEX CAPITAL INC is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2796 of 7,333 overall (62nd percentile). Key comparisons include ROE of 8.4% trailing the 9.0% sector median and operating margins of 45.6% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While DX currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Investment (18) would have the largest impact on the composite score.
EV/EBITDA 388% ABOVE SECTOR MEDIAN
ROE 7% BELOW SECTOR MEDIAN
Gross Margin 29% ABOVE SECTOR MEDIAN (FAVORABLE)
The $1.6B question: What happens when a company this good becomes this expensive? On Wall Street, there are companies that move money, and then there are companies that are the money. DYNEX CAPITAL INC falls squarely into the latter category — a financial infrastructure so embedded in the global economy that to bet against it feels almost like betting against commerce itself. At $1.6B in market capitalization, DYNEX CAPITAL INC (DX) currently ranks #41 in our quantitative model, with a c
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Above 50MA
37.18%
Net New Highs
+51081