AFFIRM HOLDINGS INC (AFRM)
US00827B1061 - Common Stock
AFRM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. While AFRM seems to be doing ok healthwise, there are quite some concerns on its profitability. AFRM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AFRM has reported negative net income.
AFRM had a positive operating cash flow in the past year.
AFRM had negative earnings in each of the past 5 years.
AFRM had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -8.28%, AFRM is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
AFRM has a Return On Equity of -28.48%. This is amonst the worse of the industry: AFRM underperforms 81.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -28.48% | ||
| ROIC | N/A |
ROA(3y)-10.43%
ROA(5y)-10.4%
ROE(3y)-27.66%
ROE(5y)-27.39%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AFRM does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AFRM does not have a ROIC to compare to the WACC, probably because it is not profitable.
AFRM has more shares outstanding than it did 1 year ago.
The debt/assets ratio for AFRM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that AFRM is in the distress zone and has some risk of bankruptcy.
AFRM has a Altman-Z score (0.62) which is comparable to the rest of the industry.
The Debt to FCF ratio of AFRM is 185.09, which is on the high side as it means it would take AFRM, 185.09 years of fcf income to pay off all of its debts.
AFRM's Debt to FCF ratio of 185.09 is in line compared to the rest of the industry. AFRM outperforms 40.20% of its industry peers.
A Debt/Equity ratio of 2.30 is on the high side and indicates that AFRM has dependencies on debt financing.
The Debt to Equity ratio of AFRM (2.30) is worse than 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | 185.09 | ||
| Altman-Z | 0.62 |
ROIC/WACCN/A
WACC7.56%
2.3 Liquidity
AFRM has a Current Ratio of 4.48. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
AFRM's Current ratio of 4.48 is amongst the best of the industry. AFRM outperforms 93.14% of its industry peers.
A Quick Ratio of 4.48 indicates that AFRM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.48, AFRM belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.48 | ||
| Quick Ratio | 4.48 |
3. Growth
3.1 Past
AFRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.07%, which is quite good.
Looking at the last year, AFRM shows a very strong growth in Revenue. The Revenue has grown by 41.08%.
AFRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.10% yearly.
EPS 1Y (TTM)11.07%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q50.91%
Revenue 1Y (TTM)41.08%
Revenue growth 3Y43.1%
Revenue growth 5YN/A
Revenue growth Q2Q58.36%
3.2 Future
Based on estimates for the next years, AFRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.28% on average per year.
Based on estimates for the next years, AFRM will show a quite strong growth in Revenue. The Revenue will grow by 16.66% on average per year.
EPS Next Y22.55%
EPS Next 2Y19.6%
EPS Next 3Y18.28%
EPS Next 5YN/A
Revenue Next Year42.75%
Revenue Next 2Y31.37%
Revenue Next 3Y27.32%
Revenue Next 5Y16.66%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
AFRM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AFRM. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
AFRM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 312.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as AFRM's earnings are expected to grow with 18.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.6%
EPS Next 3Y18.28%
5. Dividend
5.1 Amount
No dividends for AFRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AFFIRM HOLDINGS INC
NASDAQ:AFRM (4/26/2024, 7:00:00 PM)
Premarket: 33.3875 +0.06 (+0.17%)33.33
+1.68 (+5.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -28.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.48 | ||
| Quick Ratio | 4.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.07%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y22.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)41.08%
Revenue growth 3Y43.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y