FINANCE OF AMERICA COS INC-A (FOA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOA - US31738L2060 - Common Stock
22.65 USD
+0.58 (+2.63%)
22.65 USD
0 (0%)
Overall FOA gets a fundamental rating of 3 out of 10. We evaluated FOA against 98 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.
In the past year FOA has reported a negative cash flow from operations.
In multiple years FOA reported negative net income over the last 5 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's Return On Equity of -1.23% is on the low side compared to the rest of the industry. FOA is outperformed by 72.45% of its industry peers.
FOA has a better Return On Invested Capital (4.98%) than 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
FOA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 83.33%, FOA belongs to the top 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.
With an excellent Gross Margin value of 95.79%, FOA belongs to the best 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
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.
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.
The Altman-Z score of FOA (0.19) is comparable to the rest of the industry.
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 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.
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 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 550.00% over the past year.
The Earnings Per Share has been growing slightly by 0.78% on average over the past years.
Looking at the last year, FOA shows a very strong growth in Revenue. The Revenue has grown by 97.74%.
Measured over the past years, FOA shows a quite strong growth in Revenue. The Revenue has been growing by 8.26% on average per year.
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
FOA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 112.28% yearly.
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
A Price/Earnings ratio of 8.68 indicates a reasonable valuation of FOA.
Based on the Price/Earnings ratio, FOA is valued a bit cheaper than 73.47% of the companies in the same industry.
FOA is valuated cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.22, the valuation of FOA can be described as very cheap.
88.78% of the companies in the same industry are more expensive than FOA, based on the Price/Forward Earnings ratio.
FOA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 5.22 |
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 | 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.
A more expensive valuation may be justified as FOA's earnings are expected to grow with 112.28% in the coming years.
PEG (NY)0.02
PEG (5Y)11.09
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% |
22.65
+0.58 (+2.63%)
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 Cap178.71M
Revenue(TTM)2.20B
Net Income(TTM)-3.47M
Analysts45
Price Target30.09 (32.85%)
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 | 8.68 | ||
| Fwd PE | 5.22 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.63 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 16.12 |
EPS(TTM)2.61
EY11.52%
EPS(NY)4.34
Fwd EY19.17%
FCF(TTM)-56.34
FCFYN/A
OCF(TTM)-56.34
OCFYN/A
SpS278.54
BVpS35.89
TBVpS11.95
PEG (NY)0.02
PEG (5Y)11.09
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%.