AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis
USA - NASDAQ:AFRM - US00827B1061 - Common Stock
81.53 USD
-1.2 (-1.45%)
81.53 USD
0 (0%)
AFRM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 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.
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.
In the past 5 years AFRM reported 4 times negative net income.
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
With a Return On Assets value of 0.47%, AFRM is not doing good in the industry: 64.36% of the companies in the same industry are doing better.
AFRM has a worse Return On Equity (1.70%) than 67.33% of its industry peers.
With a Return On Invested Capital value of 2.67%, AFRM perfoms like the industry average, outperforming 52.48% of the companies in the same 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
With a Profit Margin value of 1.62%, AFRM is not doing good in the industry: 66.34% of the companies in the same industry are doing better.
AFRM's Operating Margin of 10.48% is in line compared to the rest of the industry. AFRM outperforms 42.57% of its industry peers.
Looking at the Gross Margin, with a value of 92.49%, AFRM belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFRM is destroying value.
Compared to 1 year ago, AFRM has more shares outstanding
The number of shares outstanding for AFRM has been increased compared to 5 years ago.
The debt/assets ratio for AFRM is higher compared to a year ago.
2.2 Solvency
AFRM has an Altman-Z score of 2.15. This is not the best score and indicates that AFRM is in the grey zone with still only limited risk for bankruptcy at the moment.
AFRM has a better Altman-Z score (2.15) than 79.21% of its industry peers.
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 of 12.65. This is comparable to the rest of the industry: AFRM outperforms 55.45% of its industry peers.
A Debt/Equity ratio of 2.48 is on the high side and indicates that AFRM has dependencies on debt financing.
AFRM has a worse Debt to Equity ratio (2.48) than 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 12.65 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.33
WACC8.08%
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 90.10% of its industry peers.
AFRM has a Quick Ratio of 4.20. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
AFRM has a Quick ratio of 4.20. This is amongst the best in the industry. AFRM outperforms 90.10% 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%.
The Revenue has been growing by 44.63% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, AFRM will show a very strong growth in Earnings Per Share. The EPS will grow by 101.37% 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 18.88% on average per year.
EPS Next Y592.33%
EPS Next 2Y267.86%
EPS Next 3Y225.06%
EPS Next 5Y101.37%
Revenue Next Year25.06%
Revenue Next 2Y24.36%
Revenue Next 3Y23.9%
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 627.15, the valuation of AFRM can be described as expensive.
Based on the Price/Earnings ratio, AFRM is valued expensively inside the industry as 81.19% of the companies are valued cheaper.
AFRM is valuated expensively when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 90.59, AFRM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AFRM is valued a bit more expensive than the industry average as 78.22% of the companies are valued more cheaply.
AFRM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 627.15 | ||
| Fwd PE | 90.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFRM indicates a slightly more expensive valuation: AFRM is more expensive than 64.36% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AFRM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.12 | ||
| EV/EBITDA | 58.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.06
PEG (5Y)N/A
EPS Next 2Y267.86%
EPS Next 3Y225.06%
5. Dividend
5.1 Amount
No dividends for AFRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.53
-1.2 (-1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.49%
Inst Owner Change1.82%
Ins Owners1.1%
Ins Owner Change-0.39%
Market Cap26.55B
Analysts78.06
Price Target96.79 (18.72%)
Short Float %6.38%
Short Ratio2.37
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)30.69%
PT rev (3m)41.73%
EPS NQ rev (1m)24.32%
EPS NQ rev (3m)6.1%
EPS NY rev (1m)0%
EPS NY rev (3m)15.4%
Revenue NQ rev (1m)2.45%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)2.78%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 627.15 | ||
| Fwd PE | 90.59 | ||
| P/S | 8.23 | ||
| P/FCF | 44.12 | ||
| P/OCF | 33.44 | ||
| P/B | 8.65 | ||
| P/tB | 10.53 | ||
| EV/EBITDA | 58.96 |
EPS(TTM)0.13
EY0.16%
EPS(NY)0.9
Fwd EY1.1%
FCF(TTM)1.85
FCFY2.27%
OCF(TTM)2.44
OCFY2.99%
SpS9.9
BVpS9.42
TBVpS7.74
PEG (NY)1.06
PEG (5Y)N/A
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
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 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 | 2.15 |
F-Score7
WACC8.08%
ROIC/WACC0.33
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 Y592.33%
EPS Next 2Y267.86%
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 Year25.06%
Revenue Next 2Y24.36%
Revenue Next 3Y23.9%
Revenue Next 5Y18.88%
EBIT growth 1Y228.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1264.53%
EBIT Next 3Y179.35%
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