Dynex Capital

REIT - Mortgage · Real Estate

Price

$13.03

-0.21 (-1.62%)

Market Cap

$3.22B

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Exceptional

Cash Flow

Good

Stability

Weak

Valuation

Good

Dividends

Good

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Share count rising — dilution

+281.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 32.8M (2021) → 125.1M (2025)

Winston Score History

The full picture

Dynex Capital is a mortgage real estate investment trust (REIT) based in Glen Allen, Virginia. It invests in mortgage-backed securities — essentially bundles of home and commercial loans — rather than making loans directly to borrowers. The company focuses mainly on agency mortgage-backed securities, which are backed by the U.S. government or government-sponsored entities like Fannie Mae and Freddie Mac.

Dynex makes money by borrowing at short-term interest rates and investing in mortgage securities that pay higher long-term rates, pocketing the difference — a strategy called the "net interest spread." It operates entirely within the United States and is a smaller player in the mortgage REIT space, with a market cap around $2 billion. The biggest risk the company faces is interest rate volatility: when short-term rates rise faster than long-term rates, the spread it earns shrinks, which can directly pressure earnings and the dividends it pays to shareholders.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+170.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+671.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

1.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$25.7B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Dynex Capital grew revenue 171% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

31.0%

Modest — 31.0% gross margin

Profit after running costs

Operating Margin

25.6%

Excellent — 25.6% operating margin

Return on the money invested

ROCE

3.5%

Weak — 3.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+134.1%

Fast-growing sales (+134.1% YoY)

Profit growth

EPS YoY

+229.3%

Earnings growing fast (+229.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

42%

Weak — only 42% of profit becomes cash

Spare cash per sale

FCF Margin

20.8%

Converts sales into free cash efficiently (20.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

7.13

Heavy debt load (7.13)

Covers its interest

Interest Cover

1.41x

Dangerous — barely covers interest (1.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

4.9x

Attractive valuation — P/E 4.9

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-3.7

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

16.03%

Healthy income — 16.03% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

+0.0%

Dividend flat

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