AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis
USA - NASDAQ:AFRM - US00827B1061 - Common Stock
71.93 USD
-2.56 (-3.44%)
72.12 USD
+0.19 (+0.26%)
Taking everything into account, AFRM scores 4 out of 10 in our fundamental rating. AFRM was compared to 99 industry peers in the Financial Services industry. AFRM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AFRM is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
AFRM had positive earnings in the past year.
AFRM had a positive operating cash flow in the past year.
AFRM had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: AFRM reported negative operating cash flow in multiple years.
1.2 Ratios
AFRM's Return On Assets of 0.47% is on the low side compared to the rest of the industry. AFRM is outperformed by 62.63% of its industry peers.
Looking at the Return On Equity, with a value of 1.70%, AFRM is doing worse than 65.66% of the companies in the same industry.
The Return On Invested Capital of AFRM (2.67%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 1.7% | ||
| ROIC | 2.67% |
ROA(3y)-5.68%
ROA(5y)-7.25%
ROE(3y)-18.71%
ROE(5y)-20.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.62%, AFRM is doing worse than 65.66% of the companies in the same industry.
AFRM has a Operating Margin (10.48%) which is comparable to the rest of the industry.
The Gross Margin of AFRM (92.49%) is better than 93.94% of its industry peers.
AFRM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.48% | ||
| PM (TTM) | 1.62% | ||
| GM | 92.49% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.9%
GM growth 5Y6.25%
2. Health
2.1 Basic Checks
AFRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AFRM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AFRM has been increased compared to 5 years ago.
AFRM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.95 indicates that AFRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.95, AFRM is doing good in the industry, outperforming 74.75% of the companies in the same industry.
AFRM has a debt to FCF ratio of 12.65. This is a negative value and a sign of low solvency as AFRM would need 12.65 years to pay back of all of its debts.
AFRM has a Debt to FCF ratio (12.65) which is in line with its industry peers.
A Debt/Equity ratio of 2.48 is on the high side and indicates that AFRM has dependencies on debt financing.
With a Debt to Equity ratio value of 2.48, AFRM is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 12.65 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.34
WACC7.76%
2.3 Liquidity
AFRM has a Current Ratio of 4.20. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AFRM (4.20) is better than 89.90% of its industry peers.
A Quick Ratio of 4.20 indicates that AFRM has no problem at all paying its short term obligations.
AFRM has a Quick ratio of 4.20. This is amongst the best in the industry. AFRM outperforms 89.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 |
3. Growth
3.1 Past
AFRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.74%, which is quite impressive.
AFRM shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.80%.
Measured over the past years, AFRM shows a very strong growth in Revenue. The Revenue has been growing by 44.63% on average per year.
EPS 1Y (TTM)107.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%242.86%
Revenue 1Y (TTM)38.8%
Revenue growth 3Y33.69%
Revenue growth 5Y44.63%
Sales Q2Q%32.95%
3.2 Future
AFRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 101.37% yearly.
AFRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.88% yearly.
EPS Next Y572%
EPS Next 2Y246.26%
EPS Next 3Y225.06%
EPS Next 5Y101.37%
Revenue Next Year25.18%
Revenue Next 2Y24.37%
Revenue Next 3Y23.38%
Revenue Next 5Y18.88%
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
With a Price/Earnings ratio of 553.31, AFRM can be considered very expensive at the moment.
78.79% of the companies in the same industry are cheaper than AFRM, based on the Price/Earnings ratio.
AFRM is valuated expensively when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
AFRM is valuated quite expensively with a Price/Forward Earnings ratio of 82.34.
Based on the Price/Forward Earnings ratio, AFRM is valued a bit more expensive than the industry average as 78.79% of the companies are valued more cheaply.
AFRM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 553.31 | ||
| Fwd PE | 82.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFRM is valued a bit more expensive than 61.62% of the companies in the same industry.
AFRM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.93 | ||
| EV/EBITDA | 54.19 |
4.3 Compensation for Growth
AFRM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AFRM's earnings are expected to grow with 225.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y246.26%
EPS Next 3Y225.06%
5. Dividend
5.1 Amount
No dividends for AFRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.93
-2.56 (-3.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners82.2%
Inst Owner Change-0.04%
Ins Owners1.08%
Ins Owner Change-0.37%
Market Cap23.42B
Revenue(TTM)3.22B
Net Income(TTM)52.19M
Analysts78.06
Price Target96.79 (34.56%)
Short Float %6.27%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)108.77%
Min EPS beat(2)83.96%
Max EPS beat(2)133.59%
EPS beat(4)4
Avg EPS beat(4)119.63%
Min EPS beat(4)11.21%
Max EPS beat(4)249.78%
EPS beat(8)8
Avg EPS beat(8)79.5%
EPS beat(12)10
Avg EPS beat(12)56.01%
EPS beat(16)11
Avg EPS beat(16)24.67%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)2.65%
Revenue beat(4)3
Avg Revenue beat(4)2.27%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)5.23%
Revenue beat(8)7
Avg Revenue beat(8)4.89%
Revenue beat(12)9
Avg Revenue beat(12)3.37%
Revenue beat(16)13
Avg Revenue beat(16)3.52%
PT rev (1m)0%
PT rev (3m)34.84%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)13.88%
EPS NY rev (1m)-2.94%
EPS NY rev (3m)6.73%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 553.31 | ||
| Fwd PE | 82.34 | ||
| P/S | 7.26 | ||
| P/FCF | 38.93 | ||
| P/OCF | 29.5 | ||
| P/B | 7.63 | ||
| P/tB | 9.29 | ||
| EV/EBITDA | 54.19 |
EPS(TTM)0.13
EY0.18%
EPS(NY)0.87
Fwd EY1.21%
FCF(TTM)1.85
FCFY2.57%
OCF(TTM)2.44
OCFY3.39%
SpS9.9
BVpS9.42
TBVpS7.74
PEG (NY)0.97
PEG (5Y)N/A
Graham Number5.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 1.7% | ||
| ROCE | 3.15% | ||
| ROIC | 2.67% | ||
| ROICexc | 3.06% | ||
| ROICexgc | 3.34% | ||
| OM | 10.48% | ||
| PM (TTM) | 1.62% | ||
| GM | 92.49% | ||
| FCFM | 18.66% |
ROA(3y)-5.68%
ROA(5y)-7.25%
ROE(3y)-18.71%
ROE(5y)-20.05%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.9%
GM growth 5Y6.25%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 12.65 | ||
| Debt/EBITDA | 13.51 | ||
| Cap/Depr | 85.39% | ||
| Cap/Sales | 5.96% | ||
| Interest Coverage | 0.84 | ||
| Cash Conversion | 141% | ||
| Profit Quality | 1153.03% | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 | ||
| Altman-Z | 1.95 |
F-Score7
WACC7.76%
ROIC/WACC0.34
Cap/Depr(3y)89.78%
Cap/Depr(5y)116.51%
Cap/Sales(3y)6.81%
Cap/Sales(5y)6.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)107.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%242.86%
EPS Next Y572%
EPS Next 2Y246.26%
EPS Next 3Y225.06%
EPS Next 5Y101.37%
Revenue 1Y (TTM)38.8%
Revenue growth 3Y33.69%
Revenue growth 5Y44.63%
Sales Q2Q%32.95%
Revenue Next Year25.18%
Revenue Next 2Y24.37%
Revenue Next 3Y23.38%
Revenue Next 5Y18.88%
EBIT growth 1Y228.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1310.26%
EBIT Next 3Y185.68%
EBIT Next 5YN/A
FCF growth 1Y106.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y76.37%
OCF growth 3YN/A
OCF growth 5YN/A