LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LFT • US55025L1089
1.34 USD
-0.11 (-7.59%)
At close: Jan 30, 2026
1.3893 USD
+0.05 (+3.68%)
After Hours: 1/30/2026, 8:04:00 PM
LFT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While LFT is still in line with the averages on profitability rating, there are concerns on its financial health. LFT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year LFT was profitable.
- LFT had a positive operating cash flow in the past year.
- In the past 5 years LFT has always been profitable.
- In the past 5 years LFT always reported a positive cash flow from operatings.
1.2 Ratios
- LFT has a Return On Assets (0.53%) which is comparable to the rest of the industry.
- LFT's Return On Equity of 2.20% is in line compared to the rest of the industry. LFT outperforms 47.14% of its industry peers.
- With a decent Return On Invested Capital value of 0.81%, LFT is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for LFT is in line with the industry average of 1.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 2.2% | ||
| ROIC | 0.81% |
ROA(3y)1.02%
ROA(5y)1.03%
ROE(3y)5.28%
ROE(5y)5.52%
ROIC(3y)1.11%
ROIC(5y)1.09%
1.3 Margins
- LFT has a Profit Margin of 5.78%. This is comparable to the rest of the industry: LFT outperforms 47.14% of its industry peers.
- LFT's Profit Margin has improved in the last couple of years.
- LFT has a Operating Margin (11.12%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of LFT has grown nicely.
- Looking at the Gross Margin, with a value of 27.94%, LFT is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of LFT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.12% | ||
| PM (TTM) | 5.78% | ||
| GM | 27.94% |
OM growth 3Y-18.37%
OM growth 5Y3.71%
PM growth 3Y-10.48%
PM growth 5Y15.78%
GM growth 3Y-20.78%
GM growth 5Y-5.82%
2. Health
2.1 Basic Checks
- The number of shares outstanding for LFT remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, LFT has more shares outstanding
- The debt/assets ratio for LFT has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -0.79, we must say that LFT is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -0.79, LFT is doing worse than 77.14% of the companies in the same industry.
- LFT has a debt to FCF ratio of 47.27. This is a negative value and a sign of low solvency as LFT would need 47.27 years to pay back of all of its debts.
- The Debt to FCF ratio of LFT (47.27) is better than 80.00% of its industry peers.
- A Debt/Equity ratio of 3.12 is on the high side and indicates that LFT has dependencies on debt financing.
- LFT has a better Debt to Equity ratio (3.12) than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 47.27 | ||
| Altman-Z | -0.79 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.11 indicates that LFT may have some problems paying its short term obligations.
- LFT has a worse Current ratio (0.11) than 62.86% of its industry peers.
- LFT has a Quick Ratio of 0.11. This is a bad value and indicates that LFT is not financially healthy enough and could expect problems in meeting its short term obligations.
- LFT's Quick ratio of 0.11 is on the low side compared to the rest of the industry. LFT is outperformed by 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
- The earnings per share for LFT have decreased strongly by -43.18% in the last year.
- LFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
- Looking at the last year, LFT shows a very negative growth in Revenue. The Revenue has decreased by -31.72% in the last year.
- The Revenue has been growing by 26.10% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-43.18%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-80%
Revenue 1Y (TTM)-31.72%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-38.36%
3.2 Future
- The Earnings Per Share is expected to decrease by -22.01% on average over the next years. This is quite bad
- Based on estimates for the next years, LFT will show a very negative growth in Revenue. The Revenue will decrease by -23.56% on average per year.
EPS Next Y-40.32%
EPS Next 2Y-22.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-34.75%
Revenue Next 2Y-23.56%
Revenue Next 3YN/A
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 decreasing.
- 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
- The Price/Earnings ratio is 5.36, which indicates a rather cheap valuation of LFT.
- Compared to the rest of the industry, the Price/Earnings ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 95.71% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. LFT is valued rather cheaply when compared to this.
- LFT is valuated cheaply with a Price/Forward Earnings ratio of 5.01.
- 94.29% of the companies in the same industry are more expensive than LFT, based on the Price/Forward Earnings ratio.
- LFT is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 5.01 |
4.2 Price Multiples
- 94.29% of the companies in the same industry are more expensive than LFT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.62 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A cheap valuation may be justified as LFT's earnings are expected to decrease with -22.01% in the coming years.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-22.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- LFT has a Yearly Dividend Yield of 9.52%, which is a nice return.
- LFT's Dividend Yield is comparable with the industry average which is at 11.00.
- LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.52% |
5.2 History
- The dividend of LFT has a limited annual growth rate of 5.24%.
- LFT has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of LFT decreased in the last 3 years.
Dividend Growth(5Y)5.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- LFT pays out 496.72% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of LFT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP496.72%
EPS Next 2Y-22.01%
EPS Next 3YN/A
LUMENT FINANCE TRUST INC / LFT FAQ
Can you provide the ChartMill fundamental rating for LUMENT FINANCE TRUST INC?
ChartMill assigns a fundamental rating of 4 / 10 to LFT.
What is the valuation status for LFT stock?
ChartMill assigns a valuation rating of 6 / 10 to LUMENT FINANCE TRUST INC (LFT). This can be considered as Fairly Valued.
How profitable is LUMENT FINANCE TRUST INC (LFT) stock?
LUMENT FINANCE TRUST INC (LFT) has a profitability rating of 5 / 10.
What are the PE and PB ratios of LUMENT FINANCE TRUST INC (LFT) stock?
The Price/Earnings (PE) ratio for LUMENT FINANCE TRUST INC (LFT) is 5.36 and the Price/Book (PB) ratio is 0.31.
Can you provide the dividend sustainability for LFT stock?
The dividend rating of LUMENT FINANCE TRUST INC (LFT) is 5 / 10 and the dividend payout ratio is 496.72%.