FINANCE OF AMERICA COS INC-A (FOA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOA - US31738L2060 - Common Stock
22.07 USD
-0.45 (-2%)
22.07 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to FOA. FOA was compared to 98 industry peers in the Financial Services industry. FOA has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
FOA had a negative operating cash flow in the past year.
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
FOA has a worse Return On Assets (-0.01%) than 71.43% of its industry peers.
FOA has a Return On Equity of -1.23%. This is in the lower half of the industry: FOA underperforms 72.45% of its industry peers.
FOA's Return On Invested Capital of 4.98% is fine compared to the rest of the industry. FOA outperforms 68.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -1.23% | ||
| ROIC | 4.98% |
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
In the last couple of years the Profit Margin of FOA has declined.
With an excellent Operating Margin value of 83.33%, FOA belongs to the best of the industry, outperforming 98.98% of the companies in the same industry.
In the last couple of years the Operating Margin of FOA has grown nicely.
FOA has a better Gross Margin (95.79%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 83.33% | ||
| PM (TTM) | N/A | ||
| GM | 95.79% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FOA 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.
FOA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that FOA is in the distress zone and has some risk of bankruptcy.
FOA's Altman-Z score of 0.19 is in line compared to the rest of the industry. FOA outperforms 44.90% of its industry peers.
A Debt/Equity ratio of 101.21 is on the high side and indicates that FOA has dependencies on debt financing.
FOA has a Debt to Equity ratio of 101.21. This is amonst the worse of the industry: FOA underperforms 91.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 101.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.19 |
ROIC/WACC3.75
WACC1.33%
2.3 Liquidity
FOA has a Current Ratio of 0.24. 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 (0.24) is worse than 67.35% of its industry peers.
FOA has a Quick Ratio of 0.24. 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 Quick ratio of FOA (0.24) is worse than 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
FOA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 550.00%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.78% on average over the past years.
FOA shows a strong growth in Revenue. In the last year, the Revenue has grown by 97.74%.
The Revenue has been growing by 8.26% on average over the past years. This is quite good.
EPS 1Y (TTM)550%
EPS 3YN/A
EPS 5Y0.78%
EPS Q2Q%98.51%
Revenue 1Y (TTM)97.74%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%-72.13%
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 112.28% on average per year.
The Revenue is expected to decrease by -0.56% on average over the next years.
EPS Next Y471.7%
EPS Next 2Y186.26%
EPS Next 3Y112.28%
EPS Next 5YN/A
Revenue Next Year-19.52%
Revenue Next 2Y-4.09%
Revenue Next 3Y-0.56%
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
FOA is valuated reasonably with a Price/Earnings ratio of 8.46.
Based on the Price/Earnings ratio, FOA is valued a bit cheaper than 73.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of FOA to the average of the S&P500 Index (26.92), we can say FOA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.08, the valuation of FOA can be described as very cheap.
Based on the Price/Forward Earnings ratio, FOA is valued cheaper than 88.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. FOA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 5.08 |
4.2 Price Multiples
FOA's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.12 |
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.
FOA's earnings are expected to grow with 112.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)10.81
EPS Next 2Y186.26%
EPS Next 3Y112.28%
5. Dividend
5.1 Amount
FOA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.07
-0.45 (-2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners50.33%
Inst Owner Change0%
Ins Owners21.9%
Ins Owner Change-0.19%
Market Cap174.13M
Revenue(TTM)2.20B
Net Income(TTM)-3.47M
Analysts45
Price Target30.09 (36.34%)
Short Float %16.94%
Short Ratio8.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)42.91%
Min EPS beat(2)-10.73%
Max EPS beat(2)96.54%
EPS beat(4)2
Avg EPS beat(4)13.4%
Min EPS beat(4)-54.8%
Max EPS beat(4)96.54%
EPS beat(8)5
Avg EPS beat(8)95.94%
EPS beat(12)5
Avg EPS beat(12)-32.85%
EPS beat(16)5
Avg EPS beat(16)-184.33%
Revenue beat(2)1
Avg Revenue beat(2)29.75%
Min Revenue beat(2)-21.45%
Max Revenue beat(2)80.96%
Revenue beat(4)2
Avg Revenue beat(4)-19.37%
Min Revenue beat(4)-229.72%
Max Revenue beat(4)92.73%
Revenue beat(8)6
Avg Revenue beat(8)72.07%
Revenue beat(12)7
Avg Revenue beat(12)28.73%
Revenue beat(16)8
Avg Revenue beat(16)16.47%
PT rev (1m)-7.81%
PT rev (3m)-7.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.85%
EPS NY rev (1m)0%
EPS NY rev (3m)11.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 5.08 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.61 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 16.12 |
EPS(TTM)2.61
EY11.83%
EPS(NY)4.34
Fwd EY19.68%
FCF(TTM)-56.34
FCFYN/A
OCF(TTM)-56.34
OCFYN/A
SpS278.54
BVpS35.89
TBVpS11.95
PEG (NY)0.02
PEG (5Y)10.81
Graham Number45.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -1.23% | ||
| ROCE | 6.33% | ||
| ROIC | 4.98% | ||
| ROICexc | 5% | ||
| ROICexgc | 5.04% | ||
| OM | 83.33% | ||
| PM (TTM) | N/A | ||
| GM | 95.79% | ||
| 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
ROICexgc growth 3Y17.61%
ROICexgc 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-Score3
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 101.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 15.32 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.19 |
F-Score3
WACC1.33%
ROIC/WACC3.75
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)550%
EPS 3YN/A
EPS 5Y0.78%
EPS Q2Q%98.51%
EPS Next Y471.7%
EPS Next 2Y186.26%
EPS Next 3Y112.28%
EPS Next 5YN/A
Revenue 1Y (TTM)97.74%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%-72.13%
Revenue Next Year-19.52%
Revenue Next 2Y-4.09%
Revenue Next 3Y-0.56%
Revenue Next 5YN/A
EBIT growth 1Y19.11%
EBIT growth 3Y33.23%
EBIT growth 5Y19.09%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-232.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-232.06%
OCF growth 3YN/A
OCF growth 5YN/A
FINANCE OF AMERICA COS INC-A / FOA FAQ
Can you provide the ChartMill fundamental rating for FINANCE OF AMERICA COS INC-A?
ChartMill assigns a fundamental rating of 3 / 10 to FOA.
Can you provide the valuation status for FINANCE OF AMERICA COS INC-A?
ChartMill assigns a valuation rating of 6 / 10 to FINANCE OF AMERICA COS INC-A (FOA). This can be considered as Fairly Valued.
Can you provide the profitability details for FINANCE OF AMERICA COS INC-A?
FINANCE OF AMERICA COS INC-A (FOA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for FINANCE OF AMERICA COS INC-A?
The Earnings per Share (EPS) of FINANCE OF AMERICA COS INC-A (FOA) is expected to grow by 471.7% in the next year.
How sustainable is the dividend of FINANCE OF AMERICA COS INC-A (FOA) stock?
The dividend rating of FINANCE OF AMERICA COS INC-A (FOA) is 0 / 10 and the dividend payout ratio is 0%.