AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis
USA - NASDAQ:AFRM - US00827B1061 - Common Stock
64.8499 USD
-0.5 (-0.77%)
Overall AFRM gets a fundamental rating of 4 out of 10. We evaluated AFRM against 99 industry peers in the Financial Services industry. AFRM has an average financial health and profitability rating. AFRM is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
AFRM had positive earnings in the past year.
In the past year AFRM had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.03%, AFRM is in the better half of the industry, outperforming 61.62% of the companies in the same industry.
AFRM has a Return On Equity of 7.07%. This is comparable to the rest of the industry: AFRM outperforms 40.40% of its industry peers.
AFRM has a Return On Invested Capital of 4.13%. This is in the better half of the industry: AFRM outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 7.07% | ||
| ROIC | 4.13% |
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
With a Profit Margin value of 6.74%, AFRM perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
AFRM has a Operating Margin (15.62%) which is in line with its industry peers.
AFRM has a Gross Margin of 92.50%. This is amongst the best in the industry. AFRM outperforms 93.94% of its industry peers.
AFRM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.62% | ||
| PM (TTM) | 6.74% | ||
| GM | 92.5% |
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.
Compared to 5 years ago, AFRM has more shares outstanding
Compared to 1 year ago, AFRM has a worse debt to assets ratio.
2.2 Solvency
AFRM has an Altman-Z score of 1.80. This is a bad value and indicates that AFRM is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.80, AFRM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of AFRM is 10.06, which is on the high side as it means it would take AFRM, 10.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFRM (10.06) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.35 is on the high side and indicates that AFRM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.35, AFRM is doing worse than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | 10.06 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.53
WACC7.79%
2.3 Liquidity
AFRM has a Current Ratio of 4.58. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.58, AFRM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Quick Ratio of 4.58 indicates that AFRM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.58, AFRM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.58 | ||
| Quick Ratio | 4.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 147.18% over the past year.
The Revenue has grown by 37.00% in the past year. This is a very strong growth!
AFRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 44.63% yearly.
EPS 1Y (TTM)147.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%174.19%
Revenue 1Y (TTM)37%
Revenue growth 3Y33.69%
Revenue growth 5Y44.63%
Sales Q2Q%33.62%
3.2 Future
The Earnings Per Share is expected to grow by 101.37% on average over the next years. This is a very strong growth
Based on estimates for the next years, AFRM will show a quite strong growth in Revenue. The Revenue will grow by 18.88% on average per year.
EPS Next Y564.57%
EPS Next 2Y253.75%
EPS Next 3Y237.88%
EPS Next 5Y101.37%
Revenue Next Year25.49%
Revenue Next 2Y24.67%
Revenue Next 3Y23.24%
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
Based on the Price/Earnings ratio of 96.79, the valuation of AFRM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AFRM indicates a slightly more expensive valuation: AFRM is more expensive than 76.77% of the companies listed in the same industry.
AFRM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.47.
AFRM is valuated quite expensively with a Price/Forward Earnings ratio of 39.86.
AFRM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AFRM is more expensive than 72.73% of the companies in the same industry.
AFRM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.79 | ||
| Fwd PE | 39.86 |
4.2 Price Multiples
AFRM's Enterprise Value to EBITDA ratio is in line with the industry average.
AFRM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.45 | ||
| EV/EBITDA | 35.19 |
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 237.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y253.75%
EPS Next 3Y237.88%
5. Dividend
5.1 Amount
No dividends for AFRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AFRM (11/20/2025, 2:57:09 PM)
64.8499
-0.5 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners82.2%
Inst Owner Change4.55%
Ins Owners1.08%
Ins Owner Change-0.54%
Market Cap21.12B
Revenue(TTM)3.46B
Net Income(TTM)233.10M
Analysts80
Price Target97.32 (50.07%)
Short Float %4.75%
Short Ratio1.98
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)92.28%
Min EPS beat(2)83.96%
Max EPS beat(2)100.6%
EPS beat(4)4
Avg EPS beat(4)141.98%
Min EPS beat(4)83.96%
Max EPS beat(4)249.78%
EPS beat(8)8
Avg EPS beat(8)89.59%
EPS beat(12)11
Avg EPS beat(12)64.53%
EPS beat(16)12
Avg EPS beat(16)48.06%
Revenue beat(2)2
Avg Revenue beat(2)2.96%
Min Revenue beat(2)2.65%
Max Revenue beat(2)3.27%
Revenue beat(4)3
Avg Revenue beat(4)2.3%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)5.23%
Revenue beat(8)7
Avg Revenue beat(8)4.11%
Revenue beat(12)10
Avg Revenue beat(12)3.76%
Revenue beat(16)13
Avg Revenue beat(16)3.32%
PT rev (1m)0.54%
PT rev (3m)31.4%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)-3.98%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)5.55%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.79 | ||
| Fwd PE | 39.86 | ||
| P/S | 6.1 | ||
| P/FCF | 27.45 | ||
| P/OCF | 21.74 | ||
| P/B | 6.4 | ||
| P/tB | 7.66 | ||
| EV/EBITDA | 35.19 |
EPS(TTM)0.67
EY1.03%
EPS(NY)1.63
Fwd EY2.51%
FCF(TTM)2.36
FCFY3.64%
OCF(TTM)2.98
OCFY4.6%
SpS10.62
BVpS10.13
TBVpS8.46
PEG (NY)0.17
PEG (5Y)N/A
Graham Number12.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 7.07% | ||
| ROCE | 4.87% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.75% | ||
| ROICexgc | 5.13% | ||
| OM | 15.62% | ||
| PM (TTM) | 6.74% | ||
| GM | 92.5% | ||
| FCFM | 22.24% |
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-Score9
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | 10.06 | ||
| Debt/EBITDA | 9.87 | ||
| Cap/Depr | 83.06% | ||
| Cap/Sales | 5.85% | ||
| Interest Coverage | 1.32 | ||
| Cash Conversion | 123.92% | ||
| Profit Quality | 329.99% | ||
| Current Ratio | 4.58 | ||
| Quick Ratio | 4.58 | ||
| Altman-Z | 1.8 |
F-Score9
WACC7.79%
ROIC/WACC0.53
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)147.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%174.19%
EPS Next Y564.57%
EPS Next 2Y253.75%
EPS Next 3Y237.88%
EPS Next 5Y101.37%
Revenue 1Y (TTM)37%
Revenue growth 3Y33.69%
Revenue growth 5Y44.63%
Sales Q2Q%33.62%
Revenue Next Year25.49%
Revenue Next 2Y24.67%
Revenue Next 3Y23.24%
Revenue Next 5Y18.88%
EBIT growth 1Y440.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1310.26%
EBIT Next 3Y181.24%
EBIT Next 5YN/A
FCF growth 1Y1273.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1522.93%
OCF growth 3YN/A
OCF growth 5YN/A
AFFIRM HOLDINGS INC / AFRM FAQ
What is the ChartMill fundamental rating of AFFIRM HOLDINGS INC (AFRM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AFRM.
What is the valuation status for AFRM stock?
ChartMill assigns a valuation rating of 3 / 10 to AFFIRM HOLDINGS INC (AFRM). This can be considered as Overvalued.
Can you provide the profitability details for AFFIRM HOLDINGS INC?
AFFIRM HOLDINGS INC (AFRM) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for AFRM stock?
The Earnings per Share (EPS) of AFFIRM HOLDINGS INC (AFRM) is expected to grow by 564.57% in the next year.