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AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

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

72.33  -6.63 (-8.4%)

After market: 72.65 +0.32 (+0.44%)

Fundamental Rating

4

AFRM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. While AFRM seems to be doing ok healthwise, there are quite some concerns on its profitability. AFRM shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

AFRM had negative earnings in the past year.
In the past year AFRM had a positive cash flow from operations.
AFRM had negative earnings in each 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.
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 80.20% of its industry peers.
AFRM's Return On Equity of -2.16% is on the low side compared to the rest of the industry. AFRM is outperformed by 80.20% of its industry peers.
AFRM has a Return On Invested Capital of 1.37%. This is comparable to the rest of the industry: AFRM outperforms 41.58% of its industry peers.
Industry RankSector Rank
ROA -0.6%
ROE -2.16%
ROIC 1.37%
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 (5.94%) is worse than 64.36% of its industry peers.
Looking at the Gross Margin, with a value of 72.95%, AFRM belongs to the top of the industry, outperforming 83.17% of the companies in the same industry.
Industry RankSector Rank
OM 5.94%
PM (TTM) N/A
GM 72.95%
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 50 -50

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5

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.
The number of shares outstanding for AFRM has been increased compared to 1 year ago.
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.
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

An Altman-Z score of 2.08 indicates that AFRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
AFRM's Altman-Z score of 2.08 is fine compared to the rest of the industry. AFRM outperforms 76.24% of its industry peers.
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.
AFRM has a worse Debt to Equity ratio (2.49) than 69.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 11.74
Altman-Z 2.08
ROIC/WACC0.17
WACC7.98%
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.
With an excellent Current ratio value of 4.49, AFRM belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
A Quick Ratio of 4.49 indicates that AFRM has no problem at all paying its short term obligations.
AFRM's Quick ratio of 4.49 is amongst the best of the industry. AFRM outperforms 90.10% of its industry peers.
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

The Earnings Per Share has grown by an impressive 90.58% over the past year.
AFRM shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.61%.
The Revenue has been growing by 54.39% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)90.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%102.33%
Revenue 1Y (TTM)50.61%
Revenue growth 3Y43.84%
Revenue growth 5Y54.39%
Sales Q2Q%35.92%

3.2 Future

The Earnings Per Share is expected to grow by 44.98% on average over the next years. This is a very strong growth
AFRM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.69% yearly.
EPS Next Y102.94%
EPS Next 2Y57.71%
EPS Next 3Y44.98%
EPS Next 5YN/A
Revenue Next Year41.11%
Revenue Next 2Y31.34%
Revenue Next 3Y28.04%
Revenue Next 5Y24.69%

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.
AFRM Yearly Revenue VS EstimatesAFRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 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.
Based on the Price/Forward Earnings ratio of 88.37, the valuation of AFRM can be described as expensive.
80.20% of the companies in the same industry are cheaper than AFRM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, AFRM is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 88.37
AFRM Price Earnings VS Forward Price EarningsAFRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200 -300

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 66.34% of the companies listed in the same industry.
AFRM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 38.33
EV/EBITDA 77.99
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.
A more expensive valuation may be justified as AFRM's earnings are expected to grow with 44.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y57.71%
EPS Next 3Y44.98%

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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 (8/8/2025, 8:18:18 PM)

After market: 72.65 +0.32 (+0.44%)

72.33

-6.63 (-8.4%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-28 2025-08-28/amc
Inst Owners80.49%
Inst Owner Change0.13%
Ins Owners1.1%
Ins Owner Change0.05%
Market Cap23.33B
Analysts78.06
Price Target74.06 (2.39%)
Short Float %5.58%
Short Ratio2.69
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)4.72%
PT rev (3m)6.18%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)-2.85%
EPS NY rev (1m)-10.41%
EPS NY rev (3m)545.9%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 88.37
P/S 7.94
P/FCF 38.33
P/OCF 29.61
P/B 8.12
P/tB 9.97
EV/EBITDA 77.99
EPS(TTM)-0.21
EYN/A
EPS(NY)0.82
Fwd EY1.13%
FCF(TTM)1.89
FCFY2.61%
OCF(TTM)2.44
OCFY3.38%
SpS9.1
BVpS8.91
TBVpS7.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.6%
ROE -2.16%
ROCE 1.73%
ROIC 1.37%
ROICexc 1.58%
ROICexgc 1.73%
OM 5.94%
PM (TTM) N/A
GM 72.95%
FCFM 20.72%
ROA(3y)-9.22%
ROA(5y)-9.14%
ROE(3y)-28.28%
ROE(5y)-26.14%
ROIC(3y)N/A
ROIC(5y)N/A
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 Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 11.74
Debt/EBITDA 17.82
Cap/Depr 79.18%
Cap/Sales 6.11%
Interest Coverage 0.44
Cash Conversion 196.57%
Profit Quality N/A
Current Ratio 4.49
Quick Ratio 4.49
Altman-Z 2.08
F-Score6
WACC7.98%
ROIC/WACC0.17
Cap/Depr(3y)131.95%
Cap/Depr(5y)143.97%
Cap/Sales(3y)8.39%
Cap/Sales(5y)6.43%
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 Y102.94%
EPS Next 2Y57.71%
EPS Next 3Y44.98%
EPS Next 5YN/A
Revenue 1Y (TTM)50.61%
Revenue growth 3Y43.84%
Revenue growth 5Y54.39%
Sales Q2Q%35.92%
Revenue Next Year41.11%
Revenue Next 2Y31.34%
Revenue Next 3Y28.04%
Revenue Next 5Y24.69%
EBIT growth 1Y138.07%
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