Highlights

  • Basic EPS growth is 328.17%, with a P/E of 4.08 and PEG of -0.13.
  • Estimated book value per common share was $6.74 at September 30, 2026.
  • Invesco Mortgage Capital declared a $0.12 per share common dividend for October 2026.
  • Total investment portfolio including TBAs was $8.0 billion; repurchase agreement borrowings were $6.8 billion.

Invesco Mortgage Capital (NYSE:IVR) shares were trading at USD 5.43 on October 28, 2026, down 1.63%, alongside one-year basic EPS growth of 328.17%, a trailing twelve-month P/E of 4.08 and an expected-basis PEG of -0.13, the three figures behind its place among undervalued growth stocks. On the company's side, the externally managed mortgage REIT held its second quarter 2026 earnings call, then declared a $0.12 per share common dividend for October on October 14, 2026, alongside preliminary financial data as of September 30, 2026.

Based in Atlanta, Georgia, and incorporated in Maryland, Invesco Mortgage Capital is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. It is externally managed and advised by Invesco Advisers, Inc., a registered investment adviser and an indirect wholly-owned subsidiary of Invesco Ltd., an independent global investment management firm.

Growth: Portfolio Composition and Second Quarter Commentary

The company reported a total investment portfolio including TBAs of $7,966,890 thousand at September 30, 2026. Agency RMBS in 30 year fixed-rate pass-through form had a fair value of $6,625,817 thousand, or 83.2% of the portfolio. Agency CMBS had a fair value of $681,179 thousand, or 8.5%, and Agency TBAs at implied market value were $659,894 thousand, or 8.3%.

On its second quarter 2026 call, management said net income per common share was positive after a net loss in the first quarter and that earnings available for distribution, a non-GAAP measure, were lower than in the first quarter. Management said the portfolio grew during the quarter as proceeds from at-the-market common stock issuance were invested, mostly in specified pools,.

Valuation: P/E of 4.08, PEG of -0.13 and Book Value

The P/E ratio of 4.08 is measured on trailing twelve-month earnings, and the PEG ratio of -0.13 on an expected basis. The company estimated book value per common share at $6.74 as of September 30, 2026. It calculates that figure as total stockholders' equity less the $168.1 million liquidation preference of its Series C Preferred Stock, divided by 109.1 million common shares outstanding.

On the second quarter call, management said it evaluates the dividend each quarter against earnings available for distribution, and that it believes the dividend is supported by the long-term earnings power of the portfolio.

Capital and Balance Sheet: Leverage, Funding and Liquidity

Total repurchase agreement borrowings were $6.8 billion at September 30, 2026. Repurchase agreements on Agency MBS were $6,842,947 thousand, at a weighted average interest rate of 3.97% and a weighted average remaining maturity of 20 days. The debt-to-equity ratio was 7.6x, and the economic debt-to-equity ratio, a non-GAAP measure that includes TBAs at implied cost basis of $674.1 million, was 8.3x.

Unrestricted cash and unencumbered investments were $401.3 million. For hedging, the company held interest rate swaps with a notional amount of $5,185,000 thousand, a weighted average fixed pay rate of 2.72% and a weighted average floating receive rate of 3.90%.

The October 2026 dividend of $0.12 per share will be paid on November 16, 2026 to stockholders as of October 26, 2026, which is also the ex-dividend date.

Disclosed Risks and Outlook

The company stated that the September 30, 2026 figures are preliminary, unaudited month-end data. Its independent auditors have not audited or reviewed them, and additional items identified in the month-end and quarter-end closing processes could result in material revisions.

On the second quarter call, the chief investment officer said volatility, particularly at the front end of the yield curve, was increasing, which he described as a headwind for Agency mortgages. Management cited higher mortgage rates limiting housing activity, uncertainty about monetary policy, inflation and geopolitical developments in the Middle East, and said it kept its hedge ratio elevated and reduced its duration gap.

On the second quarter call, management said it entered the third quarter constructive yet measured on Agency RMBS and Agency CMBS, and that its house view was that the Federal Reserve would keep policy on hold for the foreseeable future while a rate increase in the second half of 2026 remained possible.