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AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

NASDAQ:AFRM - Nasdaq - US00827B1061 - Common Stock - Currency: USD

59.9  -0.95 (-1.56%)

After market: 59.5 -0.4 (-0.67%)

Fundamental Rating

3

AFRM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. The financial health of AFRM is average, but there are quite some concerns on its profitability. AFRM is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year AFRM has reported negative net income.
In the past year AFRM had a positive cash flow from operations.
In the past 5 years AFRM always reported negative net income.
In multiple years AFRM reported negative operating cash flow during the last 5 years.
AFRM Yearly Net Income VS EBIT VS OCF VS FCFAFRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 -500M -1B

1.2 Ratios

AFRM's Return On Assets of -0.60% is on the low side compared to the rest of the industry. AFRM is outperformed by 81.82% of its industry peers.
AFRM has a Return On Equity of -2.16%. This is amonst the worse of the industry: AFRM underperforms 81.82% of its industry peers.
AFRM has a Return On Invested Capital of 0.72%. This is in the lower half of the industry: AFRM underperforms 65.66% of its industry peers.
Industry RankSector Rank
ROA -0.6%
ROE -2.16%
ROIC 0.72%
ROA(3y)-9.22%
ROA(5y)-9.14%
ROE(3y)-28.28%
ROE(5y)-26.14%
ROIC(3y)N/A
ROIC(5y)N/A
AFRM Yearly ROA, ROE, ROICAFRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -10 -20 -30

1.3 Margins

The Operating Margin of AFRM (3.42%) is worse than 71.72% of its industry peers.
The Profit Margin and Gross Margin are not available for AFRM so they could not be analyzed.
Industry RankSector Rank
OM 3.42%
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
AFRM Yearly Profit, Operating, Gross MarginsAFRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 -20 -40 -60

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFRM is destroying value.
The number of shares outstanding for AFRM has been increased compared to 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.
AFRM Yearly Shares OutstandingAFRM Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 100M 200M 300M
AFRM Yearly Total Debt VS Total AssetsAFRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

AFRM has an Altman-Z score of 1.57. 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 1.57, AFRM is doing good in the industry, outperforming 69.70% of the companies in the same industry.
The Debt to FCF ratio of AFRM is 11.74, which is on the high side as it means it would take AFRM, 11.74 years of fcf income to pay off all of its debts.
AFRM has a Debt to FCF ratio (11.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.49 is on the high side and indicates that AFRM has dependencies on debt financing.
With a Debt to Equity ratio value of 2.49, AFRM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 11.74
Altman-Z 1.57
ROIC/WACC0.09
WACC8.13%
AFRM Yearly LT Debt VS Equity VS FCFAFRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

AFRM has a Current Ratio of 4.49. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
AFRM has a Current ratio of 4.49. This is amongst the best in the industry. AFRM outperforms 89.90% of its industry peers.
AFRM has a Quick Ratio of 4.49. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.49, AFRM belongs to the best of the industry, outperforming 89.90% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.49
Quick Ratio 4.49
AFRM Yearly Current Assets VS Current LiabilitesAFRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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7

3. Growth

3.1 Past

AFRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.58%, which is quite impressive.
Looking at the last year, AFRM shows a very strong growth in Revenue. The Revenue has grown by 37.04%.
AFRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 51.68% yearly.
EPS 1Y (TTM)90.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%102.33%
Revenue 1Y (TTM)37.04%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%35.92%

3.2 Future

Based on estimates for the next years, AFRM will show a very strong growth in Earnings Per Share. The EPS will grow by 44.77% on average per year.
Based on estimates for the next years, AFRM will show a very strong growth in Revenue. The Revenue will grow by 25.42% on average per year.
EPS Next Y99.46%
EPS Next 2Y56.98%
EPS Next 3Y44.77%
EPS Next 5YN/A
Revenue Next Year41.5%
Revenue Next 2Y31.65%
Revenue Next 3Y28.73%
Revenue Next 5Y25.42%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
AFRM Yearly Revenue VS EstimatesAFRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
AFRM Yearly EPS VS EstimatesAFRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 1 -1 -2 -3

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AFRM. In the last year negative earnings were reported.
AFRM is valuated quite expensively with a Price/Forward Earnings ratio of 76.81.
Based on the Price/Forward Earnings ratio, AFRM is valued a bit more expensive than the industry average as 79.80% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of AFRM to the average of the S&P500 Index (22.19), we can say AFRM is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 76.81
AFRM Price Earnings VS Forward Price EarningsAFRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AFRM is valued a bit more expensive than 68.69% of the companies in the same industry.
AFRM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 31.75
EV/EBITDA 79.96
AFRM Per share dataAFRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

The 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 44.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.98%
EPS Next 3Y44.77%

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0

5. Dividend

5.1 Amount

AFRM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AFFIRM HOLDINGS INC

NASDAQ:AFRM (6/17/2025, 8:00:00 PM)

After market: 59.5 -0.4 (-0.67%)

59.9

-0.95 (-1.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-26 2025-08-26/amc
Inst Owners80.46%
Inst Owner Change4.27%
Ins Owners1.12%
Ins Owner Change-0.02%
Market Cap19.32B
Analysts79.31
Price Target68.29 (14.01%)
Short Float %5.88%
Short Ratio1.93
Dividend
Industry RankSector 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)191.68%
Min EPS beat(2)133.59%
Max EPS beat(2)249.78%
EPS beat(4)4
Avg EPS beat(4)116.94%
Min EPS beat(4)11.21%
Max EPS beat(4)249.78%
EPS beat(8)8
Avg EPS beat(8)71.6%
EPS beat(12)9
Avg EPS beat(12)48.88%
EPS beat(16)10
Avg EPS beat(16)15.69%
Revenue beat(2)1
Avg Revenue beat(2)1.64%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)5.23%
Revenue beat(4)3
Avg Revenue beat(4)3.37%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)7.06%
Revenue beat(8)7
Avg Revenue beat(8)5.51%
Revenue beat(12)8
Avg Revenue beat(12)-0.69%
Revenue beat(16)8
Avg Revenue beat(16)-2.66%
PT rev (1m)-1.91%
PT rev (3m)-8.71%
EPS NQ rev (1m)3.36%
EPS NQ rev (3m)10.27%
EPS NY rev (1m)0%
EPS NY rev (3m)92.98%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.74%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 76.81
P/S 7.23
P/FCF 31.75
P/OCF 24.52
P/B 6.72
P/tB 8.26
EV/EBITDA 79.96
EPS(TTM)-0.21
EYN/A
EPS(NY)0.78
Fwd EY1.3%
FCF(TTM)1.89
FCFY3.15%
OCF(TTM)2.44
OCFY4.08%
SpS8.28
BVpS8.91
TBVpS7.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.6%
ROE -2.16%
ROCE 0.91%
ROIC 0.72%
ROICexc 0.83%
ROICexgc 0.91%
OM 3.42%
PM (TTM) N/A
GM N/A
FCFM 22.78%
ROA(3y)-9.22%
ROA(5y)-9.14%
ROE(3y)-28.28%
ROE(5y)-26.14%
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
ROICexcg growth 3YN/A
ROICexcg 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 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 11.74
Debt/EBITDA 22.47
Cap/Depr 79.18%
Cap/Sales 6.71%
Interest Coverage 0.23
Cash Conversion 247.84%
Profit Quality N/A
Current Ratio 4.49
Quick Ratio 4.49
Altman-Z 1.57
F-Score6
WACC8.13%
ROIC/WACC0.09
Cap/Depr(3y)131.95%
Cap/Depr(5y)143.97%
Cap/Sales(3y)8.6%
Cap/Sales(5y)6.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%102.33%
EPS Next Y99.46%
EPS Next 2Y56.98%
EPS Next 3Y44.77%
EPS Next 5YN/A
Revenue 1Y (TTM)37.04%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%35.92%
Revenue Next Year41.5%
Revenue Next 2Y31.65%
Revenue Next 3Y28.73%
Revenue Next 5Y25.42%
EBIT growth 1Y119.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year197.32%
EBIT Next 3Y64.07%
EBIT Next 5Y49.07%
FCF growth 1Y354.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y968.84%
OCF growth 3YN/A
OCF growth 5YN/A