| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 72 | 7.1x | 17.8x | Top tier | |
Growth | 81 | 134.1% | 7.1% | Top tier | |
Quality | 66 | 3.5% | 4.5% | Around median | |
Safety | 23 | 24.2x | 2.6x | Bottom tier | |
Capital Return | 97 | 16.29% | 2.12% | Top tier | |
Momentum | 42 | 2.7% | 2.9% | Around median | |
Sentiment | 72 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dynex Capital, Inc. is a mortgage real estate investment trust focused on agency-guaranteed mortgage-backed securities, generating its income primarily from the yield on its Agency MBS portfolio after financing and hedging costs. The company relies on financing and leverage and uses interest rate swaps and futures contracts to manage interest rate risk, while allocating investments across different coupons and collateral characteristics to limit prepayment risk and asset duration extension.
In fiscal Q2 2026, total economic return was 6.4%, including ordinary dividends of 0.51 dollars per share and a 0.30-dollar-per-share increase in portfolio value. Book value rose to 12.90 dollars per share from 12.60 dollars at the end of the previous quarter, and net interest income increased to 0.42 dollars per share from 0.40 dollars, supported by lower financing costs and the deployment of capital into investments with attractive yields. The portfolio's fair value reached 27.6 billion dollars, up 11% from the previous quarter, while the Agency MBS portfolio grew by more than 40% during the first half of fiscal 2026.
Dynex ended fiscal Q2 2026 with a capital base of 3.1 billion dollars, compared with 2.4 billion dollars at the end of fiscal 2025, after raising 391 million dollars during the quarter on terms that management said were accretive to book value. Adjusted leverage was 8.1 times total shareholders' equity, down from 8.6 times, while cash and unencumbered securities reached 1.6 billion dollars, equivalent to more than 51% of shareholders' equity. The portfolio is concentrated in Agency MBS, making interest income, book value, and liquidity more important operating indicators in the provided data than traditional revenue and profit margin measures.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on DX is Neutral, and the average, highest, and lowest targets are identical at 14.50 dollars, so the target range provides no diversity in estimates. This target is close to the 52-week range high of 14.93 dollars and substantially above its low of 11.83 dollars; this range reflects the valuation's sensitivity to book value and Agency MBS spreads, particularly after the book value estimate declined from 12.90 dollars on June 30, 2026 to 12.67 dollars on July 17, 2026.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Dynex invests primarily in Agency MBS and earns the spread between the yields on these assets and its financing and hedging costs. The company uses interest rate swaps and futures contracts to reduce the impact of yield movements, while also diversifying the portfolio across multiple coupons and collateral characteristics. In fiscal Q2 2026, net interest income increased to 0.42 dollars per share from 0.40 dollars in the previous quarter.
Total economic return was 6.4%, including ordinary dividends of 0.51 dollars per share and a 0.30-dollar-per-share increase in portfolio value. Book value rose to 12.90 dollars per share on June 30, 2026 from 12.60 dollars at the end of the previous quarter. The portfolio's fair value also reached 27.6 billion dollars, up 11% quarter over quarter.
The company increased its portfolio from 8.6 billion dollars to 27.6 billion dollars over two years and became the third-largest Agency mREIT according to an August 2, 2026 report. Management believes greater scale may enhance liquidity and investor visibility and support a better valuation, particularly given passive investment flows that tend to favor larger companies. Dynex partially funded this expansion by raising 391 million dollars in fiscal Q2 2026 and increasing its capital base to 3.1 billion dollars.
Dynex paid ordinary dividends of 0.51 dollars per share during fiscal Q2 2026, as part of a total economic return of 6.4%. Management said during the July 20, 2026 call that it was generating a double-digit dividend yield, while net interest income increased to 0.42 dollars per share. The sustainability of income remains tied to financing costs, Agency MBS spreads, and the speed of asset prepayments.
Management believes lender algorithms may accelerate mortgage refinancing, increasing the likelihood of prepayment for securities that are easier to refinance. This is prompting Dynex to focus on specific loan pools with lower balances or characteristics that provide greater protection against prepayment. Management said on July 20, 2026 that this shift makes security selection critically important and that its effect had not been fully priced into the mortgage market.
Cash and unencumbered securities totaled 1.6 billion dollars at the end of fiscal Q2 2026, representing more than 51% of total shareholders' equity. Adjusted leverage declined to 8.1 times from 8.6 times in the previous quarter, while management described a range of 7.5 to 8.5 times as comfortable under current conditions. This liquidity gives the company flexibility to purchase Agency MBS when spreads widen, but it does not eliminate interest rate and book value volatility risks.
