FINANCE OF AMERICA COS INC-A (FOA) Stock Fundamental Analysis
NYSE:FOA - New York Stock Exchange, Inc. - US31738L2060 - Common Stock - Currency: USD
Taking everything into account, FOA scores 3 out of 10 in our fundamental rating. FOA was compared to 100 industry peers in the Financial Services industry. FOA has a medium profitability rating, but doesn't score so well on its financial health evaluation. FOA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FOA was profitable.
In the past year FOA has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: FOA reported negative net income in multiple years.
FOA had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.18%, FOA is not doing good in the industry: 69.00% of the companies in the same industry are doing better.
FOA's Return On Equity of 18.23% is amongst the best of the industry. FOA outperforms 81.00% of its industry peers.
FOA's Return On Invested Capital of 5.35% is fine compared to the rest of the industry. FOA outperforms 66.00% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
FOA has a Profit Margin of 2.44%. This is in the lower half of the industry: FOA underperforms 68.00% of its industry peers.
FOA's Profit Margin has declined in the last couple of years.
FOA has a Operating Margin of 84.57%. This is amongst the best in the industry. FOA outperforms 98.00% of its industry peers.
In the last couple of years the Operating Margin of FOA has grown nicely.
FOA has a better Gross Margin (96.80%) than 100.00% of its industry peers.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
FOA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, FOA has more shares outstanding
The number of shares outstanding for FOA has been reduced compared to 5 years ago.
Compared to 1 year ago, FOA has a worse debt to assets ratio.
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.
FOA has a Altman-Z score (0.16) which is comparable to the rest of the industry.
A Debt/Equity ratio of 91.89 is on the high side and indicates that FOA has dependencies on debt financing.
With a Debt to Equity ratio value of 91.89, FOA is not doing good in the industry: 93.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 91.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC3.88
WACC1.38%
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.
FOA has a Current ratio of 0.10. This is in the lower half of the industry: FOA underperforms 78.00% of its industry peers.
A Quick Ratio of 0.10 indicates that FOA may have some problems paying its short term obligations.
FOA has a worse Quick ratio (0.10) than 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 138.57% over the past year.
FOA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.78% yearly.
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
FOA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 97.13% yearly.
The Revenue is expected to decrease by -4.00% on average over the next years.
EPS Next Y433.58%
EPS Next 2Y154.54%
EPS Next 3Y97.13%
EPS Next 5YN/A
Revenue Next Year-24.21%
Revenue Next 2Y-9.15%
Revenue Next 3Y-4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.74 indicates a rather expensive valuation of FOA.
FOA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.46. FOA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 6.97, the valuation of FOA can be described as very cheap.
Based on the Price/Forward Earnings ratio, FOA is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, FOA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FOA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.57 |
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.
FOA's earnings are expected to grow with 97.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)22.68
EPS Next 2Y154.54%
EPS Next 3Y97.13%
5. Dividend
5.1 Amount
FOA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.95
+0.21 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners50.73%
Inst Owner Change0%
Ins Owners18.79%
Ins Owner Change21.01%
Market Cap264.89M
Analysts45
Price Target25.5 (6.47%)
Short Float %10.23%
Short Ratio8.97
Dividend
| Industry Rank | Sector 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)11.11%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.12 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.91 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 15.57 |
EPS(TTM)1.35
EY5.64%
EPS(NY)3.43
Fwd EY14.34%
FCF(TTM)-34.65
FCFYN/A
OCF(TTM)-34.69
OCFYN/A
SpS197.37
BVpS26.41
TBVpS7.65
PEG (NY)0.04
PEG (5Y)22.68
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC1.38%
ROIC/WACC3.88
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 Y433.58%
EPS Next 2Y154.54%
EPS Next 3Y97.13%
EPS Next 5YN/A
Revenue 1Y (TTM)155.02%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%121.87%
Revenue Next Year-24.21%
Revenue Next 2Y-9.15%
Revenue Next 3Y-4%
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