Logo image of AFRM

AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

NASDAQ:AFRM - US00827B1061 - Common Stock

89.59 USD
+4.28 (+5.02%)
Last: 9/4/2025, 11:26:08 AM
Fundamental Rating

4

AFRM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. No worries on liquidiy or solvency for AFRM as it has an excellent financial health rating, but there are worries on the profitability. AFRM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

1. Profitability

1.1 Basic Checks

In the past year AFRM was profitable.
AFRM had a positive operating cash flow in the past year.
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

1.2 Ratios

AFRM has a worse Return On Assets (-0.60%) than 78.43% of its industry peers.
With a Return On Equity value of -2.16%, AFRM is not doing good in the industry: 77.45% of the companies in the same industry are doing better.
AFRM has a Return On Invested Capital of 1.54%. This is comparable to the rest of the industry: AFRM outperforms 44.12% of its industry peers.
Industry RankSector Rank
ROA -0.6%
ROE -2.16%
ROIC 1.54%
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 -10 -20 -30

1.3 Margins

The Operating Margin of AFRM (6.54%) is worse than 64.71% of its industry peers.
AFRM has a better Gross Margin (92.37%) than 94.12% of its industry peers.
In the last couple of years the Gross Margin of AFRM has grown nicely.
Industry RankSector Rank
OM 6.54%
PM (TTM) N/A
GM 92.37%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.78%
GM growth 5Y5.01%
AFRM Yearly Profit, Operating, Gross MarginsAFRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 50 -50

More info and screens

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFRM is destroying value.
There is no outstanding debt for AFRM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 2.26 indicates that AFRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
AFRM has a Altman-Z score of 2.26. This is in the better half of the industry: AFRM outperforms 78.43% of its industry peers.
There is no outstanding debt for AFRM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.26
ROIC/WACC0.17
WACC8.87%
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 1B 2B

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 89.22% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 4.49, AFRM belongs to the top of the industry, outperforming 89.22% 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

More info and screens

4

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.
EPS 1Y (TTM)107.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%242.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
Based on estimates for the next years, AFRM will show a quite strong growth in Revenue. The Revenue will grow by 18.96% on average per year.
EPS Next Y592.33%
EPS Next 2Y267.86%
EPS Next 3Y225.06%
EPS Next 5Y101.37%
Revenue Next Year22.09%
Revenue Next 2Y22.37%
Revenue Next 3Y24.47%
Revenue Next 5Y18.96%

3.3 Evolution

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 2028 2029 2030 0 2 -2 4

More info and screens

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 689.15 indicates a quite expensive valuation of AFRM.
AFRM's Price/Earnings ratio is rather expensive when compared to the industry. AFRM is more expensive than 81.37% of the companies in the same industry.
AFRM is valuated expensively when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 99.54, which means the current valuation is very expensive for AFRM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFRM indicates a slightly more expensive valuation: AFRM is more expensive than 78.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.48. AFRM is valued rather expensively when compared to this.
Industry RankSector Rank
PE 689.15
Fwd PE 99.54
AFRM Price Earnings VS Forward Price EarningsAFRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 200 400 600

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AFRM is valued a bit more expensive than the industry average as 62.75% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as AFRM.
Industry RankSector Rank
P/FCF 47.48
EV/EBITDA 61.85
AFRM Per share dataAFRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

AFRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AFRM's earnings are expected to grow with 225.06% in the coming years.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y267.86%
EPS Next 3Y225.06%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for AFRM!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

AFFIRM HOLDINGS INC

NASDAQ:AFRM (9/4/2025, 11:26:08 AM)

89.59

+4.28 (+5.02%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)08-28 2025-08-28/amc
Earnings (Next)11-06 2025-11-06/amc
Inst Owners80.49%
Inst Owner Change1.82%
Ins Owners1.1%
Ins Owner Change0.02%
Market Cap28.90B
Analysts78.06
Price Target91.79 (2.46%)
Short Float %6.67%
Short Ratio2.74
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)9
Avg Revenue beat(12)3.2%
Revenue beat(16)13
Avg Revenue beat(16)4.19%
PT rev (1m)2.62%
PT rev (3m)5.8%
EPS NQ rev (1m)2.61%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)263.68%
EPS NY rev (3m)2088.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 689.15
Fwd PE 99.54
P/S 9.61
P/FCF 47.48
P/OCF 36.68
P/B 10.05
P/tB 12.35
EV/EBITDA 61.85
EPS(TTM)0.13
EY0.15%
EPS(NY)0.9
Fwd EY1%
FCF(TTM)1.89
FCFY2.11%
OCF(TTM)2.44
OCFY2.73%
SpS9.32
BVpS8.91
TBVpS7.25
PEG (NY)1.16
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.6%
ROE -2.16%
ROCE 1.95%
ROIC 1.54%
ROICexc 1.78%
ROICexgc 1.95%
OM 6.54%
PM (TTM) N/A
GM 92.37%
FCFM 20.24%
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 3Y8.78%
GM growth 5Y5.01%
F-Score7
Asset Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 79.18%
Cap/Sales 5.96%
Interest Coverage 0.5
Cash Conversion 186.24%
Profit Quality N/A
Current Ratio 4.49
Quick Ratio 4.49
Altman-Z 2.26
F-Score7
WACC8.87%
ROIC/WACC0.17
Cap/Depr(3y)131.95%
Cap/Depr(5y)143.97%
Cap/Sales(3y)7.58%
Cap/Sales(5y)5.84%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%32.95%
Revenue Next Year22.09%
Revenue Next 2Y22.37%
Revenue Next 3Y24.47%
Revenue Next 5Y18.96%
EBIT growth 1Y142.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year223.9%
EBIT Next 3Y63.01%
EBIT Next 5Y48.75%
FCF growth 1Y354.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y968.84%
OCF growth 3YN/A
OCF growth 5YN/A