LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
NYSE:LFT - New York Stock Exchange, Inc. - US55025L1089 - REIT - Currency: USD
LFT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 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 has a bad growth rate and is valued cheaply.
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.
In the past 5 years LFT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 0.98%, LFT belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
LFT has a Return On Equity of 4.49%. This is in the better half of the industry: LFT outperforms 68.66% of its industry peers.
The Return On Invested Capital of LFT (1.13%) is better than 80.60% 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 1.34%.
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 | 0.98% | ||
| ROE | 4.49% | ||
| 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 Profit Margin of 9.55%. This is in the better half of the industry: LFT outperforms 68.66% of its industry peers.
LFT's Profit Margin has improved in the last couple of years.
LFT's Operating Margin of 13.83% is fine compared to the rest of the industry. LFT outperforms 71.64% of its industry peers.
In the last couple of years the Operating Margin of LFT has grown nicely.
LFT has a Gross Margin of 28.37%. This is comparable to the rest of the industry: LFT outperforms 59.70% of its industry peers.
LFT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.83% | ||
| PM (TTM) | 9.55% | ||
| GM | 28.37% |
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
Compared to 1 year ago, LFT has about the same amount of shares outstanding.
The number of shares outstanding for LFT has been increased compared to 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 -0.76. 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 -0.76, LFT is doing worse than 74.63% of the companies in the same industry.
LFT has a debt to FCF ratio of 36.99. This is a negative value and a sign of low solvency as LFT would need 36.99 years to pay back of all of its debts.
LFT has a better Debt to FCF ratio (36.99) than 73.13% of its industry peers.
LFT has a Debt/Equity ratio of 3.53. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LFT (3.53) is better than 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 36.99 | ||
| Altman-Z | -0.76 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
LFT has a Current Ratio of 0.09. 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 has a Current ratio of 0.09. This is in the lower half of the industry: LFT underperforms 61.19% of its industry peers.
LFT has a Quick Ratio of 0.09. 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 has a worse Quick ratio (0.09) than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The earnings per share for LFT have decreased strongly by -26.67% in the last year.
The Earnings Per Share has been growing slightly by 6.58% on average over the past years.
The Revenue has grown by 11.85% in the past year. This is quite good.
Measured over the past years, LFT shows a very strong growth in Revenue. The Revenue has been growing by 26.10% on average per year.
EPS 1Y (TTM)-26.67%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-32.83%
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 -14.29% yearly.
The Revenue is expected to decrease by -18.54% on average over the next years. This is quite bad
EPS Next Y-25.78%
EPS Next 2Y-14.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-30.4%
Revenue Next 2Y-18.54%
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 6.48 indicates a rather cheap valuation of LFT.
91.04% of the companies in the same industry are more expensive than LFT, based on the Price/Earnings ratio.
LFT is valuated cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.62, the valuation of LFT can be described as very cheap.
Based on the Price/Forward Earnings ratio, LFT is valued cheaper than 91.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.34. LFT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 6.62 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LFT is valued cheaply inside the industry as 91.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.05 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LFT has a very decent profitability rating, which may justify a higher PE ratio.
LFT's earnings are expected to decrease with -14.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y-14.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.11%, LFT is a good candidate for dividend investing.
LFT's Dividend Yield is a higher than the industry average which is at 10.61.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.11% |
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.
LFT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LFT pays out 246.53% 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.
DP246.53%
EPS Next 2Y-14.29%
EPS Next 3YN/A
2.14
-0.02 (-0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.87%
Inst Owner Change7.77%
Ins Owners2.97%
Ins Owner Change0.47%
Market Cap111.96M
Analysts76.67
Price Target2.93 (36.92%)
Short Float %2.13%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.11% |
Yearly Dividend0.39
Dividend Growth(5Y)5.24%
DP246.53%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.19%
Min EPS beat(2)-11.99%
Max EPS beat(2)7.62%
EPS beat(4)2
Avg EPS beat(4)-1%
Min EPS beat(4)-17.49%
Max EPS beat(4)17.87%
EPS beat(8)4
Avg EPS beat(8)0.03%
EPS beat(12)5
Avg EPS beat(12)-12.85%
EPS beat(16)7
Avg EPS beat(16)-8.69%
Revenue beat(2)0
Avg Revenue beat(2)-9.37%
Min Revenue beat(2)-12.75%
Max Revenue beat(2)-6%
Revenue beat(4)1
Avg Revenue beat(4)-4.14%
Min Revenue beat(4)-12.75%
Max Revenue beat(4)5.92%
Revenue beat(8)4
Avg Revenue beat(8)-0.23%
Revenue beat(12)7
Avg Revenue beat(12)2.01%
Revenue beat(16)11
Avg Revenue beat(16)17.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-2.18%
EPS NQ rev (3m)-13.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.19%
Revenue NQ rev (1m)-7.07%
Revenue NQ rev (3m)-14.32%
Revenue NY rev (1m)-5.08%
Revenue NY rev (3m)-13.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 6.62 | ||
| P/S | 1.03 | ||
| P/FCF | 5.05 | ||
| P/OCF | 5.05 | ||
| P/B | 0.48 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY15.42%
EPS(NY)0.32
Fwd EY15.1%
FCF(TTM)0.42
FCFY19.8%
OCF(TTM)0.42
OCFY19.8%
SpS2.08
BVpS4.43
TBVpS4.43
PEG (NY)N/A
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 4.49% | ||
| ROCE | 5.38% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.2% | ||
| ROICexgc | 1.21% | ||
| OM | 13.83% | ||
| PM (TTM) | 9.55% | ||
| GM | 28.37% | ||
| FCFM | 20.34% |
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%
ROICexcg growth 3Y21.78%
ROICexcg 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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 36.99 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 213% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | -0.76 |
F-Score5
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)-26.67%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-44.44%
EPS Next Y-25.78%
EPS Next 2Y-14.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.85%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-32.83%
Revenue Next Year-30.4%
Revenue Next 2Y-18.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.56%
EBIT growth 3Y22.43%
EBIT growth 5Y30.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y26.16%
FCF growth 3Y25.12%
FCF growth 5Y30.1%
OCF growth 1Y26.16%
OCF growth 3Y25.12%
OCF growth 5Y30.1%