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AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

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

52.34  +2.59 (+5.21%)

After market: 52.39 +0.05 (+0.1%)

Fundamental Rating

3

Taking everything into account, AFRM scores 3 out of 10 in our fundamental rating. AFRM was compared to 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 shows excellent growth, but is valued quite expensive already.


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.
AFRM had a positive operating cash flow in the past year.
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 has a worse Return On Assets (-1.90%) than 82.18% of its industry peers.
Looking at the Return On Equity, with a value of -7.14%, AFRM is doing worse than 82.18% of the companies in the same industry.
Industry RankSector Rank
ROA -1.9%
ROE -7.14%
ROIC N/A
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 Profit Margin and Operating Margin and Gross Margin are not available for AFRM so they could not be analyzed.
Industry RankSector Rank
OM N/A
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

AFRM does not have a ROIC to compare to the WACC, probably because it is not profitable.
AFRM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AFRM has been increased compared to 5 years ago.
AFRM has a worse debt/assets ratio than last year.
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

Based on the Altman-Z score of 1.17, we must say that AFRM is in the distress zone and has some risk of bankruptcy.
AFRM's Altman-Z score of 1.17 is fine compared to the rest of the industry. AFRM outperforms 64.36% of its industry peers.
AFRM has a debt to FCF ratio of 11.92. This is a negative value and a sign of low solvency as AFRM would need 11.92 years to pay back of all of its debts.
AFRM has a Debt to FCF ratio of 11.92. This is comparable to the rest of the industry: AFRM outperforms 53.47% of its industry peers.
A Debt/Equity ratio of 2.62 is on the high side and indicates that AFRM has dependencies on debt financing.
With a Debt to Equity ratio value of 2.62, AFRM is not doing good in the industry: 70.30% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.62
Debt/FCF 11.92
Altman-Z 1.17
ROIC/WACCN/A
WACC12.84%
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

A Current Ratio of 4.20 indicates that AFRM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.20, AFRM belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
A Quick Ratio of 4.20 indicates that AFRM has no problem at all paying its short term obligations.
AFRM's Quick ratio of 4.20 is amongst the best of the industry. AFRM outperforms 92.08% of its industry peers.
Industry RankSector Rank
Current Ratio 4.2
Quick Ratio 4.2
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 73.90% over the past year.
The Revenue has grown by 41.92% 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 51.68% yearly.
EPS 1Y (TTM)73.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%142.59%
Revenue 1Y (TTM)41.92%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%46.57%

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 43.49% on average per year.
AFRM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.64% yearly.
EPS Next Y99.34%
EPS Next 2Y56.86%
EPS Next 3Y43.49%
EPS Next 5YN/A
Revenue Next Year41.19%
Revenue Next 2Y32.59%
Revenue Next 3Y29.99%
Revenue Next 5Y25.64%

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 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.
The Price/Forward Earnings ratio is 67.64, which means the current valuation is very expensive for AFRM.
Based on the Price/Forward Earnings ratio, AFRM is valued a bit more expensive than the industry average as 74.26% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of AFRM to the average of the S&P500 Index (20.86), we can say AFRM is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 67.64
AFRM Price Earnings VS Forward Price EarningsAFRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AFRM is valued a bit more expensive than the industry average as 67.33% 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 27.33
EV/EBITDA 143.4
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

AFRM's 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 43.49% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.86%
EPS Next 3Y43.49%

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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 (5/2/2025, 8:00:00 PM)

After market: 52.39 +0.05 (+0.1%)

52.34

+2.59 (+5.21%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)05-08 2025-05-08/amc
Inst Owners78.57%
Inst Owner Change0.3%
Ins Owners1.1%
Ins Owner Change-0.51%
Market Cap16.75B
Analysts75.86
Price Target67.61 (29.17%)
Short Float %5.6%
Short Ratio1.82
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)130.5%
Min EPS beat(2)11.21%
Max EPS beat(2)249.78%
EPS beat(4)4
Avg EPS beat(4)92.9%
Min EPS beat(4)11.21%
Max EPS beat(4)249.78%
EPS beat(8)8
Avg EPS beat(8)58.24%
EPS beat(12)9
Avg EPS beat(12)43.05%
EPS beat(16)9
Avg EPS beat(16)-8.44%
Revenue beat(2)2
Avg Revenue beat(2)4.18%
Min Revenue beat(2)3.13%
Max Revenue beat(2)5.23%
Revenue beat(4)4
Avg Revenue beat(4)4.41%
Min Revenue beat(4)2.22%
Max Revenue beat(4)7.06%
Revenue beat(8)8
Avg Revenue beat(8)5.88%
Revenue beat(12)8
Avg Revenue beat(12)-1.67%
Revenue beat(16)9
Avg Revenue beat(16)-2.16%
PT rev (1m)-9.62%
PT rev (3m)12.56%
EPS NQ rev (1m)31.57%
EPS NQ rev (3m)65.49%
EPS NY rev (1m)44.01%
EPS NY rev (3m)97.93%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)2.4%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 67.64
P/S 6.7
P/FCF 27.33
P/OCF 21.32
P/B 6.01
P/tB 7.44
EV/EBITDA 143.4
EPS(TTM)-0.65
EYN/A
EPS(NY)0.77
Fwd EY1.48%
FCF(TTM)1.92
FCFY3.66%
OCF(TTM)2.45
OCFY4.69%
SpS7.81
BVpS8.7
TBVpS7.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.9%
ROE -7.14%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 24.51%
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 Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 2.62
Debt/FCF 11.92
Debt/EBITDA 47.56
Cap/Depr 84.69%
Cap/Sales 6.91%
Interest Coverage N/A
Cash Conversion 511.48%
Profit Quality N/A
Current Ratio 4.2
Quick Ratio 4.2
Altman-Z 1.17
F-Score6
WACC12.84%
ROIC/WACCN/A
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)73.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%142.59%
EPS Next Y99.34%
EPS Next 2Y56.86%
EPS Next 3Y43.49%
EPS Next 5YN/A
Revenue 1Y (TTM)41.92%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%46.57%
Revenue Next Year41.19%
Revenue Next 2Y32.59%
Revenue Next 3Y29.99%
Revenue Next 5Y25.64%
EBIT growth 1Y91.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year234.81%
EBIT Next 3Y63.43%
EBIT Next 5YN/A
FCF growth 1Y401.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1320.18%
OCF growth 3YN/A
OCF growth 5YN/A