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 101 industry peers in the Financial Services industry. Both the profitability and financial health of FOA have multiple concerns. FOA is not valued too expensively and it also shows a decent growth rate.
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.
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
Looking at the Return On Assets, with a value of 0.05%, FOA is doing worse than 77.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.07%, FOA is doing worse than 62.38% of the companies in the same industry.
FOA has a Return On Invested Capital of 5.28%. This is in the better half of the industry: FOA outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 6.07% | ||
| ROIC | 5.28% |
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 of 0.72% is on the low side compared to the rest of the industry. FOA is outperformed by 71.29% of its industry peers.
In the last couple of years the Profit Margin of FOA has declined.
FOA's Operating Margin of 82.14% is amongst the best of the industry. FOA outperforms 97.03% of its industry peers.
FOA's Operating Margin has improved in the last couple of years.
FOA has a Gross Margin of 96.87%. This is amongst the best in the industry. FOA outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 82.14% | ||
| PM (TTM) | 0.72% | ||
| GM | 96.87% |
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.
The number of shares outstanding for FOA has been increased compared to 1 year ago.
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 0.15, we must say that FOA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.15, FOA is doing worse than 60.40% of the companies in the same industry.
A Debt/Equity ratio of 102.67 is on the high side and indicates that FOA has dependencies on debt financing.
FOA has a Debt to Equity ratio of 102.67. This is amonst the worse of the industry: FOA underperforms 94.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 102.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.15 |
ROIC/WACC3.88
WACC1.36%
2.3 Liquidity
FOA has a Current Ratio of 0.13. 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 0.13. This is in the lower half of the industry: FOA underperforms 73.27% of its industry peers.
FOA has a Quick Ratio of 0.13. This is a bad value and indicates that FOA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.13, FOA is doing worse than 73.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
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.
FOA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.78% yearly.
Looking at the last year, FOA shows a very strong growth in Revenue. The Revenue has grown by 20.14%.
The Revenue has been growing by 8.26% on average over the past years. This is quite good.
EPS 1Y (TTM)138.57%
EPS 3YN/A
EPS 5Y0.78%
EPS Q2Q%273.33%
Revenue 1Y (TTM)20.14%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%121.87%
3.2 Future
The Earnings Per Share is expected to grow by 98.75% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -5.62% on average over the next years.
EPS Next Y427.87%
EPS Next 2Y161.01%
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
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 15.43, FOA is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as FOA.
FOA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.12.
A Price/Forward Earnings ratio of 5.77 indicates a rather cheap valuation of FOA.
Based on the Price/Forward Earnings ratio, FOA is valued cheaper than 82.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, FOA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 5.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.92 |
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.
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)19.72
EPS Next 2Y161.01%
EPS Next 3Y98.75%
5. Dividend
5.1 Amount
No dividends for FOA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.83
-0.46 (-2.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners44.45%
Inst Owner Change0.06%
Ins Owners15.76%
Ins Owner Change14.1%
Market Cap223.09M
Analysts45
Price Target22.95 (10.18%)
Short Float %8.8%
Short Ratio5.48
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)271.74%
Min EPS beat(2)-54.8%
Max EPS beat(2)598.28%
EPS beat(4)3
Avg EPS beat(4)165.99%
Min EPS beat(4)-54.8%
Max EPS beat(4)598.28%
EPS beat(8)3
Avg EPS beat(8)-49.5%
EPS beat(12)3
Avg EPS beat(12)-65.74%
EPS beat(16)4
Avg EPS beat(16)-192.21%
Revenue beat(2)2
Avg Revenue beat(2)423.84%
Min Revenue beat(2)289.08%
Max Revenue beat(2)558.6%
Revenue beat(4)4
Avg Revenue beat(4)220.21%
Min Revenue beat(4)13.83%
Max Revenue beat(4)558.6%
Revenue beat(8)5
Avg Revenue beat(8)108.14%
Revenue beat(12)6
Avg Revenue beat(12)74.15%
Revenue beat(16)10
Avg Revenue beat(16)60.07%
PT rev (1m)-19.64%
PT rev (3m)-19.64%
EPS NQ rev (1m)6.33%
EPS NQ rev (3m)6.33%
EPS NY rev (1m)1.28%
EPS NY rev (3m)-2.29%
Revenue NQ rev (1m)6.99%
Revenue NQ rev (3m)7.97%
Revenue NY rev (1m)6.76%
Revenue NY rev (3m)8.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 5.77 | ||
| P/S | 0.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.87 | ||
| P/tB | 5.73 | ||
| EV/EBITDA | 15.92 |
EPS(TTM)1.35
EY6.48%
EPS(NY)3.61
Fwd EY17.33%
FCF(TTM)-39.57
FCFYN/A
OCF(TTM)-39.57
OCFYN/A
SpS201.72
BVpS23.84
TBVpS3.64
PEG (NY)0.04
PEG (5Y)19.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 6.07% | ||
| ROCE | 6.68% | ||
| ROIC | 5.28% | ||
| ROICexc | 5.29% | ||
| ROICexgc | 5.33% | ||
| OM | 82.14% | ||
| PM (TTM) | 0.72% | ||
| GM | 96.87% | ||
| 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 | 102.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.45 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 4.1 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 0.15 |
F-Score4
WACC1.36%
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 Y427.87%
EPS Next 2Y161.01%
EPS Next 3Y98.75%
EPS Next 5YN/A
Revenue 1Y (TTM)20.14%
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 1Y113.89%
EBIT growth 3Y33.23%
EBIT growth 5Y19.09%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-492.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-492.18%
OCF growth 3YN/A
OCF growth 5YN/A