LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - NYSE:LFT - US55025L1089 - REIT
1.49 USD
-0.05 (-3.25%)
Taking everything into account, LFT scores 5 out of 10 in our fundamental rating. LFT was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. LFT scores excellent on profitability, but there are concerns on its financial health. LFT is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LFT was profitable.
In the past year LFT had a positive cash flow from operations.
In the past 5 years LFT has always been profitable.
LFT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.95%, LFT belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.11%, LFT is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
LFT has a Return On Invested Capital of 1.13%. This is amongst the best in the industry. LFT outperforms 80.88% of its industry peers.
LFT had an Average Return On Invested Capital over the past 3 years of 1.11%. This is in line with the industry average of 1.19%.
The last Return On Invested Capital (1.13%) for LFT is above the 3 year average (1.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.11% | ||
| ROIC | 1.13% |
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 better Profit Margin (9.60%) than 67.65% of its industry peers.
LFT's Profit Margin has improved in the last couple of years.
LFT has a better Operating Margin (14.34%) than 67.65% of its industry peers.
LFT's Operating Margin has improved in the last couple of years.
LFT has a Gross Margin of 29.18%. This is comparable to the rest of the industry: LFT outperforms 55.88% of its industry peers.
LFT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.34% | ||
| PM (TTM) | 9.6% | ||
| GM | 29.18% |
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.
LFT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LFT has an improved debt to assets ratio.
2.2 Solvency
LFT has an Altman-Z score of -0.77. This is a bad value and indicates that LFT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.77, LFT is doing worse than 76.47% of the companies in the same industry.
LFT has a debt to FCF ratio of 37.38. This is a negative value and a sign of low solvency as LFT would need 37.38 years to pay back of all of its debts.
LFT has a better Debt to FCF ratio (37.38) than 77.94% of its industry peers.
A Debt/Equity ratio of 3.27 is on the high side and indicates that LFT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.27, LFT is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 37.38 | ||
| Altman-Z | -0.77 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.09 indicates that LFT may have some problems paying its short term obligations.
With a Current ratio value of 0.09, LFT is not doing good in the industry: 60.29% of the companies in the same industry are doing better.
A Quick Ratio of 0.09 indicates that LFT may have some problems paying its short term obligations.
With a Quick ratio value of 0.09, LFT is not doing good in the industry: 60.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
LFT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.18%.
LFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
The Revenue has grown by 11.85% in the past year. This is quite good.
LFT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.10% yearly.
EPS 1Y (TTM)-43.18%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-80%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-82.98%
3.2 Future
LFT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.97% yearly.
The Revenue is expected to decrease by -23.56% on average over the next years. This is quite bad
EPS Next Y-31.14%
EPS Next 2Y-14.97%
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 5.96 indicates a rather cheap valuation of LFT.
Based on the Price/Earnings ratio, LFT is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
LFT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 4.68, the valuation of LFT can be described as very cheap.
Based on the Price/Forward Earnings ratio, LFT is valued cheaper than 95.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, LFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.96 | ||
| Fwd PE | 4.68 |
4.2 Price Multiples
95.59% 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 | 3.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of LFT may justify a higher PE ratio.
A cheap valuation may be justified as LFT's earnings are expected to decrease with -14.97% in the coming years.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y-14.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.49%, LFT is a good candidate for dividend investing.
In the last 3 months the price of LFT has falen by -28.04%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 9.49, LFT pays less dividend than the industry average, which is at 13.19. 80.88% of the companies listed in the same industry pay a better dividend than LFT!
Compared to an average S&P500 Dividend Yield of 2.36, LFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.49% |
5.2 History
The dividend of LFT has a limited annual growth rate of 5.24%.
LFT has been paying a dividend for at least 10 years, so it has 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 275.65% of its income as dividend. This is not a sustainable payout ratio.
LFT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP275.65%
EPS Next 2Y-14.97%
EPS Next 3YN/A
NYSE:LFT (11/13/2025, 2:00:06 PM)
1.49
-0.05 (-3.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change-0.12%
Ins Owners2.99%
Ins Owner Change0.55%
Market Cap77.99M
Revenue(TTM)122.13M
Net Income(TTM)9.50M
Analysts76.67
Price Target2.68 (79.87%)
Short Float %1.39%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.49% |
Yearly Dividend0.39
Dividend Growth(5Y)5.24%
DP275.65%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.99%
Min EPS beat(2)-33.99%
Max EPS beat(2)-11.99%
EPS beat(4)2
Avg EPS beat(4)-5.12%
Min EPS beat(4)-33.99%
Max EPS beat(4)17.87%
EPS beat(8)4
Avg EPS beat(8)1.4%
EPS beat(12)5
Avg EPS beat(12)-13.8%
EPS beat(16)6
Avg EPS beat(16)-13.96%
Revenue beat(2)0
Avg Revenue beat(2)-9.49%
Min Revenue beat(2)-12.75%
Max Revenue beat(2)-6.23%
Revenue beat(4)1
Avg Revenue beat(4)-4.76%
Min Revenue beat(4)-12.75%
Max Revenue beat(4)5.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.15%
Revenue beat(12)7
Avg Revenue beat(12)1.86%
Revenue beat(16)10
Avg Revenue beat(16)12.38%
PT rev (1m)0%
PT rev (3m)-8.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.96 | ||
| Fwd PE | 4.68 | ||
| P/S | 0.79 | ||
| P/FCF | 3.85 | ||
| P/OCF | 3.85 | ||
| P/B | 0.34 | ||
| P/tB | 0.34 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.25
EY16.78%
EPS(NY)0.32
Fwd EY21.35%
FCF(TTM)0.39
FCFY25.98%
OCF(TTM)0.39
OCFY25.98%
SpS1.89
BVpS4.42
TBVpS4.42
PEG (NY)N/A
PEG (5Y)0.91
Graham Number4.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.11% | ||
| ROCE | 5.06% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.2% | ||
| ROICexgc | 1.21% | ||
| OM | 14.34% | ||
| PM (TTM) | 9.6% | ||
| GM | 29.18% | ||
| FCFM | 20.48% |
ROA(3y)1.02%
ROA(5y)1.03%
ROE(3y)5.28%
ROE(5y)5.52%
ROIC(3y)1.11%
ROIC(5y)1.09%
ROICexc(3y)1.17%
ROICexc(5y)1.13%
ROICexgc(3y)1.17%
ROICexgc(5y)1.13%
ROCE(3y)5.96%
ROCE(5y)5.9%
ROICexgc growth 3Y21.78%
ROICexgc growth 5Y18.68%
ROICexc growth 3Y21.77%
ROICexc growth 5Y18.69%
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%
F-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 37.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.22 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 213.33% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | -0.77 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)212.03%
Profit Quality(5y)193.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-43.18%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-80%
EPS Next Y-31.14%
EPS Next 2Y-14.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.85%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-82.98%
Revenue Next Year-34.75%
Revenue Next 2Y-23.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.96%
EBIT growth 3Y22.43%
EBIT growth 5Y30.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.08%
FCF growth 3Y25.12%
FCF growth 5Y30.1%
OCF growth 1Y12.08%
OCF growth 3Y25.12%
OCF growth 5Y30.1%
LUMENT FINANCE TRUST INC / LFT FAQ
Can you provide the ChartMill fundamental rating for LUMENT FINANCE TRUST INC?
ChartMill assigns a fundamental rating of 5 / 10 to LFT.
Can you provide the valuation status for LUMENT FINANCE TRUST INC?
ChartMill assigns a valuation rating of 7 / 10 to LUMENT FINANCE TRUST INC (LFT). This can be considered as Undervalued.
How profitable is LUMENT FINANCE TRUST INC (LFT) stock?
LUMENT FINANCE TRUST INC (LFT) has a profitability rating of 7 / 10.
What is the earnings growth outlook for LUMENT FINANCE TRUST INC?
The Earnings per Share (EPS) of LUMENT FINANCE TRUST INC (LFT) is expected to decline by -31.14% in the next year.
Is the dividend of LUMENT FINANCE TRUST INC sustainable?
The dividend rating of LUMENT FINANCE TRUST INC (LFT) is 4 / 10 and the dividend payout ratio is 275.65%.