FINANCE OF AMERICA COS INC-A (FOA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOA - US31738L2060 - Common Stock
23.43 USD
+0.03 (+0.13%)
23.2108 USD
-0.22 (-0.94%)
Taking everything into account, FOA scores 3 out of 10 in our fundamental rating. FOA was compared to 97 industry peers in the Financial Services industry. FOA has a bad profitability rating. Also its financial health evaluation is rather negative. FOA has a correct valuation and a medium 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.
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.
1.2 Ratios
With a Return On Assets value of -0.01%, FOA is not doing good in the industry: 73.20% of the companies in the same industry are doing better.
FOA has a worse Return On Equity (-1.23%) than 74.23% of its industry peers.
With a decent Return On Invested Capital value of 4.98%, FOA is doing good in the industry, outperforming 68.04% of the companies in the same industry.
| 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
FOA's Profit Margin has declined in the last couple of years.
FOA has a Operating Margin of 83.33%. This is amongst the best in the industry. FOA outperforms 98.97% of its industry peers.
In the last couple of years the Operating Margin of FOA has grown nicely.
Looking at the Gross Margin, with a value of 95.79%, FOA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FOA is creating value.
FOA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FOA has been reduced compared to 5 years ago.
The debt/assets ratio for FOA is higher compared to a year ago.
2.2 Solvency
FOA has an Altman-Z score of 0.19. This is a bad value and indicates that FOA is not financially healthy and even has some risk of bankruptcy.
FOA has a Altman-Z score (0.19) which is in line with its industry peers.
A Debt/Equity ratio of 101.21 is on the high side and indicates that FOA has dependencies on debt financing.
The Debt to Equity ratio of FOA (101.21) is worse than 93.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 101.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.19 |
ROIC/WACC3.72
WACC1.34%
2.3 Liquidity
A Current Ratio of 0.24 indicates that FOA may have some problems paying its short term obligations.
With a Current ratio value of 0.24, FOA is not doing good in the industry: 71.13% of the companies in the same industry are doing better.
A Quick Ratio of 0.24 indicates that FOA may have some problems paying its short term obligations.
FOA has a worse Quick ratio (0.24) than 71.13% 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.
FOA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.56% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.98, the valuation of FOA can be described as very reasonable.
69.07% of the companies in the same industry are more expensive than FOA, based on the Price/Earnings ratio.
FOA is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.39, which indicates a rather cheap valuation of FOA.
Based on the Price/Forward Earnings ratio, FOA is valued cheaper than 86.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. FOA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 5.39 |
4.2 Price Multiples
FOA's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.12 |
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 112.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)11.47
EPS Next 2Y186.26%
EPS Next 3Y112.28%
5. Dividend
5.1 Amount
No dividends for FOA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
23.43
+0.03 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.4%
Inst Owner Change4.86%
Ins Owners26.37%
Ins Owner Change-0.26%
Market Cap184.86M
Revenue(TTM)2.20B
Net Income(TTM)-3.47M
Analysts45
Price Target30.09 (28.43%)
Short Float %16.8%
Short Ratio7.1
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)-30.85%
EPS NQ rev (3m)-30.85%
EPS NY rev (1m)11.94%
EPS NY rev (3m)11.94%
Revenue NQ rev (1m)-5.8%
Revenue NQ rev (3m)-5.8%
Revenue NY rev (1m)6.79%
Revenue NY rev (3m)6.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 5.39 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.65 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 16.12 |
EPS(TTM)2.61
EY11.14%
EPS(NY)4.34
Fwd EY18.54%
FCF(TTM)-56.34
FCFYN/A
OCF(TTM)-56.34
OCFYN/A
SpS278.54
BVpS35.89
TBVpS11.95
PEG (NY)0.02
PEG (5Y)11.47
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
WACC1.34%
ROIC/WACC3.72
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.
What is the valuation status of FINANCE OF AMERICA COS INC-A (FOA) stock?
ChartMill assigns a valuation rating of 6 / 10 to FINANCE OF AMERICA COS INC-A (FOA). This can be considered as Fairly Valued.
What is the profitability of FOA stock?
FINANCE OF AMERICA COS INC-A (FOA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for FOA stock?
The Price/Earnings (PE) ratio for FINANCE OF AMERICA COS INC-A (FOA) is 8.98 and the Price/Book (PB) ratio is 0.65.
Can you provide the expected EPS growth for FOA stock?
The Earnings per Share (EPS) of FINANCE OF AMERICA COS INC-A (FOA) is expected to grow by 471.7% in the next year.