Invests in residential mortgage assets on a leveraged basis. Acquires agency mortgage-backed securities (MBS) guaranteed by government-sponsored enterprises. Now — the numbers.
This is an established company with proven profits.
Average growth of 16% a year over the last 3 years. Every year shown ended in profit.
The market pays 5.2× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
No analyst target is on record for this company.
Executives buying with their own money is usually read as confidence in the company’s future.
The stock trades near its peak today. For long-term holders the ride has paid off so far — though past performance guarantees nothing about the future.
The net profit margin is 20% — the profit kept from each dollar of revenue is the company’s cushion in hard quarters.
Over the last 4 years, sales grew about 16% a year on average.
Over the last 12 months, company executives reported 42 buys and 33 sells. Management buying with its own money is usually read as a good sign.
Getting in and out without moving the price could prove difficult.
Against everything we grade, MFAO lands near the top. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: MFAO is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
Not covered, because the filings we hold do not carry it: the revenue breakdown.