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FINANCE OF AMERICA COS INC-A (FOA) Stock Fundamental Analysis

NYSE:FOA - New York Stock Exchange, Inc. - US31738L2060 - Common Stock - Currency: USD

21.23  -0.73 (-3.32%)

Fundamental Rating

3

FOA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. While FOA is still in line with the averages on profitability rating, there are concerns on its financial health. FOA has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

FOA had positive earnings in the past year.
FOA had a negative operating cash flow in the past year.
In multiple years FOA reported negative net income over the last 5 years.
In the past 5 years FOA reported 4 times negative operating cash flow.
FOA Yearly Net Income VS EBIT VS OCF VS FCFFOA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B

1.2 Ratios

With a Return On Assets value of 0.18%, FOA is not doing good in the industry: 70.71% of the companies in the same industry are doing better.
With an excellent Return On Equity value of 18.23%, FOA belongs to the best of the industry, outperforming 80.81% of the companies in the same industry.
FOA's Return On Invested Capital of 5.35% is fine compared to the rest of the industry. FOA outperforms 65.66% of its industry peers.
Industry RankSector Rank
ROA 0.18%
ROE 18.23%
ROIC 5.35%
ROA(3y)-0.39%
ROA(5y)0.07%
ROE(3y)-34.5%
ROE(5y)-17.17%
ROIC(3y)N/A
ROIC(5y)N/A
FOA Yearly ROA, ROE, ROICFOA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 0 0 0 0 0 0 0 0 0 0

1.3 Margins

FOA has a worse Profit Margin (2.44%) than 68.69% of its industry peers.
In the last couple of years the Profit Margin of FOA has declined.
With an excellent Operating Margin value of 84.57%, FOA belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
FOA's Operating Margin has improved in the last couple of years.
The Gross Margin of FOA (96.80%) is better than 100.00% of its industry peers.
Industry RankSector Rank
OM 84.57%
PM (TTM) 2.44%
GM 96.8%
OM growth 3Y32.26%
OM growth 5Y10.01%
PM growth 3YN/A
PM growth 5Y-28.15%
GM growth 3YN/A
GM growth 5YN/A
FOA Yearly Profit, Operating, Gross MarginsFOA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FOA is creating value.
Compared to 1 year ago, FOA has more shares outstanding
Compared to 5 years ago, FOA has less shares outstanding
The debt/assets ratio for FOA is higher compared to a year ago.
FOA Yearly Shares OutstandingFOA Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
FOA Yearly Total Debt VS Total AssetsFOA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

Based on the Altman-Z score of 0.16, we must say that FOA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FOA (0.16) is worse than 60.61% of its industry peers.
A Debt/Equity ratio of 91.89 is on the high side and indicates that FOA has dependencies on debt financing.
FOA's Debt to Equity ratio of 91.89 is on the low side compared to the rest of the industry. FOA is outperformed by 93.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 91.89
Debt/FCF N/A
Altman-Z 0.16
ROIC/WACC3.91
WACC1.37%
FOA Yearly LT Debt VS Equity VS FCFFOA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B 25B

2.3 Liquidity

FOA has a Current Ratio of 0.10. This is a bad value and indicates that FOA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FOA (0.10) is worse than 76.77% of its industry peers.
A Quick Ratio of 0.10 indicates that FOA may have some problems paying its short term obligations.
The Quick ratio of FOA (0.10) is worse than 76.77% of its industry peers.
Industry RankSector Rank
Current Ratio 0.1
Quick Ratio 0.1
FOA Yearly Current Assets VS Current LiabilitesFOA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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6

3. Growth

3.1 Past

FOA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 138.57%, which is quite impressive.
Measured over the past 5 years, FOA shows a small growth in Earnings Per Share. The EPS has been growing by 0.78% on average per year.
FOA shows a strong growth in Revenue. In the last year, the Revenue has grown by 155.02%.
FOA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.26% yearly.
EPS 1Y (TTM)138.57%
EPS 3YN/A
EPS 5Y0.78%
EPS Q2Q%273.33%
Revenue 1Y (TTM)155.02%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%121.87%

3.2 Future

Based on estimates for the next years, FOA will show a very strong growth in Earnings Per Share. The EPS will grow by 98.75% on average per year.
Based on estimates for the next years, FOA will show a decrease in Revenue. The Revenue will decrease by -5.62% on average per year.
EPS Next Y424.06%
EPS Next 2Y154.54%
EPS Next 3Y98.75%
EPS Next 5YN/A
Revenue Next Year-27.89%
Revenue Next 2Y-11.33%
Revenue Next 3Y-5.62%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FOA Yearly Revenue VS EstimatesFOA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
FOA Yearly EPS VS EstimatesFOA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 -20 -40

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.73, which indicates a correct valuation of FOA.
FOA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.25. FOA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 6.18, which indicates a rather cheap valuation of FOA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FOA indicates a somewhat cheap valuation: FOA is cheaper than 79.80% of the companies listed in the same industry.
FOA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.73
Fwd PE 6.18
FOA Price Earnings VS Forward Price EarningsFOA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as FOA.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.56
FOA Per share dataFOA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

FOA'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 FOA's earnings are expected to grow with 98.75% in the coming years.
PEG (NY)0.04
PEG (5Y)20.1
EPS Next 2Y154.54%
EPS Next 3Y98.75%

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0

5. Dividend

5.1 Amount

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

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FINANCE OF AMERICA COS INC-A

NYSE:FOA (6/2/2025, 4:10:02 PM)

21.23

-0.73 (-3.32%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners44.45%
Inst Owner Change16.52%
Ins Owners15.76%
Ins Owner Change21.59%
Market Cap234.80M
Analysts45
Price Target22.95 (8.1%)
Short Float %9.14%
Short Ratio6.02
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.11%
Min EPS beat(2)-54.8%
Max EPS beat(2)22.58%
EPS beat(4)3
Avg EPS beat(4)159.01%
Min EPS beat(4)-54.8%
Max EPS beat(4)598.28%
EPS beat(8)4
Avg EPS beat(8)-19.57%
EPS beat(12)4
Avg EPS beat(12)-62.65%
EPS beat(16)4
Avg EPS beat(16)-191.51%
Revenue beat(2)1
Avg Revenue beat(2)-68.5%
Min Revenue beat(2)-229.72%
Max Revenue beat(2)92.73%
Revenue beat(4)3
Avg Revenue beat(4)41.48%
Min Revenue beat(4)-229.72%
Max Revenue beat(4)289.08%
Revenue beat(8)5
Avg Revenue beat(8)21.37%
Revenue beat(12)6
Avg Revenue beat(12)19.82%
Revenue beat(16)9
Avg Revenue beat(16)14.38%
PT rev (1m)0%
PT rev (3m)-19.64%
EPS NQ rev (1m)3.39%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-3%
Revenue NQ rev (1m)7.66%
Revenue NQ rev (3m)8.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.14%
Valuation
Industry RankSector Rank
PE 15.73
Fwd PE 6.18
P/S 0.11
P/FCF N/A
P/OCF N/A
P/B 0.8
P/tB 2.78
EV/EBITDA 15.56
EPS(TTM)1.35
EY6.36%
EPS(NY)3.43
Fwd EY16.18%
FCF(TTM)-34.65
FCFYN/A
OCF(TTM)-34.69
OCFYN/A
SpS197.37
BVpS26.41
TBVpS7.65
PEG (NY)0.04
PEG (5Y)20.1
Profitability
Industry RankSector Rank
ROA 0.18%
ROE 18.23%
ROCE 6.78%
ROIC 5.35%
ROICexc 5.36%
ROICexgc 5.4%
OM 84.57%
PM (TTM) 2.44%
GM 96.8%
FCFM N/A
ROA(3y)-0.39%
ROA(5y)0.07%
ROE(3y)-34.5%
ROE(5y)-17.17%
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 3Y17.61%
ROICexcg growth 5Y7.9%
ROICexc growth 3Y18.58%
ROICexc growth 5Y7.91%
OM growth 3Y32.26%
OM growth 5Y10.01%
PM growth 3YN/A
PM growth 5Y-28.15%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.07
Health
Industry RankSector Rank
Debt/Equity 91.89
Debt/FCF N/A
Debt/EBITDA 14.24
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 3.85
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.1
Quick Ratio 0.1
Altman-Z 0.16
F-Score4
WACC1.37%
ROIC/WACC3.91
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)138.57%
EPS 3YN/A
EPS 5Y0.78%
EPS Q2Q%273.33%
EPS Next Y424.06%
EPS Next 2Y154.54%
EPS Next 3Y98.75%
EPS Next 5YN/A
Revenue 1Y (TTM)155.02%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%121.87%
Revenue Next Year-27.89%
Revenue Next 2Y-11.33%
Revenue Next 3Y-5.62%
Revenue Next 5YN/A
EBIT growth 1Y101.01%
EBIT growth 3Y33.23%
EBIT growth 5Y19.09%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-129.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-129.38%
OCF growth 3YN/A
OCF growth 5YN/A