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AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

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

64.72  -3.83 (-5.58%)

Premarket: 63.15 -1.57 (-2.43%)

Fundamental Rating

3

Overall AFRM gets a fundamental rating of 3 out of 10. We evaluated AFRM against 100 industry peers in the Financial Services industry. While AFRM seems to be doing ok healthwise, there are quite some concerns on its profitability. AFRM is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

AFRM had negative earnings in the past year.
AFRM had a positive operating cash flow in the past year.
AFRM had negative earnings in each of the past 5 years.
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

With a Return On Assets value of -0.60%, AFRM is not doing good in the industry: 81.00% of the companies in the same industry are doing better.
With a Return On Equity value of -2.16%, AFRM is not doing good in the industry: 81.00% of the companies in the same industry are doing better.
The Return On Invested Capital of AFRM (0.72%) is worse than 65.00% 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 71.00% 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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFRM is destroying value.
AFRM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AFRM has more shares outstanding
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 1.67, we must say that AFRM is in the distress zone and has some risk of bankruptcy.
AFRM has a Altman-Z score of 1.67. This is in the better half of the industry: AFRM outperforms 69.00% 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.
Looking at the Debt to FCF ratio, with a value of 11.74, AFRM is in line with its industry, outperforming 51.00% of the companies in the same industry.
A Debt/Equity ratio of 2.49 is on the high side and indicates that AFRM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.49, AFRM is doing worse than 67.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 11.74
Altman-Z 1.67
ROIC/WACC0.09
WACC8.18%
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 4.49 indicates that AFRM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.49, AFRM belongs to the top of the industry, outperforming 90.00% 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.
The Quick ratio of AFRM (4.49) is better than 90.00% 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.
The Revenue has grown by 37.04% in the past year. This is a very strong growth!
Measured over the past years, AFRM shows a very strong growth in Revenue. The Revenue has been growing by 51.68% on average per year.
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

AFRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.98% yearly.
The Revenue is expected to grow by 24.69% on average over the next years. This is a very strong growth
EPS Next Y102.94%
EPS Next 2Y57.71%
EPS Next 3Y44.98%
EPS Next 5YN/A
Revenue Next Year41.5%
Revenue Next 2Y31.4%
Revenue Next 3Y28.5%
Revenue Next 5Y24.69%

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 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.
The Price/Forward Earnings ratio is 79.07, which means the current valuation is very expensive for AFRM.
Based on the Price/Forward Earnings ratio, AFRM is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, AFRM is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 79.07
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

AFRM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AFRM is more expensive than 68.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFRM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 34.3
EV/EBITDA 83.89
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 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 (7/11/2025, 8:00:00 PM)

Premarket: 63.15 -1.57 (-2.43%)

64.72

-3.83 (-5.58%)

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 Change0%
Ins Owners1.12%
Ins Owner Change0%
Market Cap20.88B
Analysts78.71
Price Target68.55 (5.92%)
Short Float %5.78%
Short Ratio2.13
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)0.38%
PT rev (3m)-6.24%
EPS NQ rev (1m)-4.35%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)646.67%
EPS NY rev (3m)349.64%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 79.07
P/S 7.81
P/FCF 34.3
P/OCF 26.49
P/B 7.26
P/tB 8.92
EV/EBITDA 83.89
EPS(TTM)-0.21
EYN/A
EPS(NY)0.82
Fwd EY1.26%
FCF(TTM)1.89
FCFY2.92%
OCF(TTM)2.44
OCFY3.77%
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 1.67
F-Score6
WACC8.18%
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 Y102.94%
EPS Next 2Y57.71%
EPS Next 3Y44.98%
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 2Y31.4%
Revenue Next 3Y28.5%
Revenue Next 5Y24.69%
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