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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

27.58  -0.34 (-1.22%)

After market: 27.58 0 (0%)

Fundamental Rating

3

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. There are concerns on the financial health of FOA while its profitability can be described as average. FOA is not valued too expensively and it also shows a decent 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.
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.
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

FOA has a worse Return On Assets (0.18%) than 69.31% of its industry peers.
FOA's Return On Equity of 18.23% is amongst the best of the industry. FOA outperforms 84.16% of its industry peers.
With a decent Return On Invested Capital value of 5.35%, FOA is doing good in the industry, outperforming 67.33% of the companies in the same industry.
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's Profit Margin of 2.44% is on the low side compared to the rest of the industry. FOA is outperformed by 64.36% 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 98.02% of its industry peers.
FOA's Operating Margin has improved in the last couple of years.
FOA has a better Gross Margin (96.80%) 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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FOA is creating value.
FOA has more shares outstanding than it did 1 year ago.
FOA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FOA has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.16, FOA is in line with its industry, outperforming 43.56% of the companies in the same industry.
A Debt/Equity ratio of 91.89 is on the high side and indicates that FOA has dependencies on debt financing.
The Debt to Equity ratio of FOA (91.89) is worse than 93.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 91.89
Debt/FCF N/A
Altman-Z 0.16
ROIC/WACC3.82
WACC1.4%
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

A Current Ratio of 0.10 indicates that FOA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.10, FOA is doing worse than 78.22% of the companies in the same industry.
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 78.22% 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

The Earnings Per Share has grown by an impressive 182.98% 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 20.14%.
The Revenue has been growing by 8.26% on average over the past years. This is quite good.
EPS 1Y (TTM)182.98%
EPS 3YN/A
EPS 5Y0.78%
EPS Q2Q%1200%
Revenue 1Y (TTM)20.14%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%124.42%

3.2 Future

The Earnings Per Share is expected to grow by 97.13% on average over the next years. This is a very strong growth
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.
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

FOA is valuated correctly with a Price/Earnings ratio of 14.14.
FOA's Price/Earnings ratio is in line with the industry average.
FOA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.03, which indicates a very decent valuation of FOA.
FOA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FOA is cheaper than 70.30% of the companies in the same industry.
FOA is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.14
Fwd PE 8.03
FOA Price Earnings VS Forward Price EarningsFOA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

FOA's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.6
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 97.13% in the coming years.
PEG (NY)0.03
PEG (5Y)18.08
EPS Next 2Y154.54%
EPS Next 3Y97.13%

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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 (8/15/2025, 8:22:16 PM)

After market: 27.58 0 (0%)

27.58

-0.34 (-1.22%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)08-05 2025-08-05/amc
Earnings (Next)10-21 2025-10-21/amc
Inst Owners50.87%
Inst Owner Change-0.56%
Ins Owners18.76%
Ins Owner Change20.96%
Market Cap305.03M
Analysts45
Price Target25.5 (-7.54%)
Short Float %9.23%
Short Ratio8.48
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)11.11%
PT rev (3m)11.11%
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)5.1%
Valuation
Industry RankSector Rank
PE 14.14
Fwd PE 8.03
P/S 0.14
P/FCF N/A
P/OCF N/A
P/B 1.04
P/tB 3.61
EV/EBITDA 15.6
EPS(TTM)1.95
EY7.07%
EPS(NY)3.43
Fwd EY12.45%
FCF(TTM)-34.65
FCFYN/A
OCF(TTM)-34.69
OCFYN/A
SpS197.37
BVpS26.41
TBVpS7.65
PEG (NY)0.03
PEG (5Y)18.08
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
WACC1.4%
ROIC/WACC3.82
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)182.98%
EPS 3YN/A
EPS 5Y0.78%
EPS Q2Q%1200%
EPS Next Y433.58%
EPS Next 2Y154.54%
EPS Next 3Y97.13%
EPS Next 5YN/A
Revenue 1Y (TTM)20.14%
Revenue growth 3Y0.73%
Revenue growth 5Y8.26%
Sales Q2Q%124.42%
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