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 65 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.
LFT had a positive operating cash flow in the past year.
LFT had positive earnings in each of the past 5 years.
Each year in the past 5 years LFT had a positive operating cash flow.
1.2 Ratios
LFT has a better Return On Assets (0.98%) than 76.92% of its industry peers.
LFT's Return On Equity of 4.49% is fine compared to the rest of the industry. LFT outperforms 66.15% of its industry peers.
With a decent Return On Invested Capital value of 1.13%, LFT is doing good in the industry, outperforming 78.46% of the companies in the same industry.
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 1.42%.
The 3 year average ROIC (1.11%) for LFT is below the current ROIC(1.13%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 9.55%, LFT is doing good in the industry, outperforming 66.15% of the companies in the same industry.
LFT's Profit Margin has improved in the last couple of years.
LFT has a Operating Margin of 13.83%. This is in the better half of the industry: LFT outperforms 69.23% 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 56.92% 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
LFT has about the same amout of shares outstanding than it did 1 year ago.
LFT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LFT has been reduced compared to a year ago.
2.2 Solvency
LFT has an Altman-Z score of -0.74. This is a bad value and indicates that LFT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.74, LFT is not doing good in the industry: 73.85% of the companies in the same industry are doing better.
The Debt to FCF ratio of LFT is 36.99, which is on the high side as it means it would take LFT, 36.99 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LFT (36.99) is better than 73.85% of its industry peers.
A Debt/Equity ratio of 3.53 is on the high side and indicates that LFT has dependencies on debt financing.
With a decent Debt to Equity ratio value of 3.53, LFT is doing good in the industry, outperforming 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 36.99 | ||
| Altman-Z | -0.74 |
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 61.54% 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.
Looking at the Quick ratio, with a value of 0.09, LFT is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
LFT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.50%.
Measured over the past 5 years, LFT shows a small growth in Earnings Per Share. The EPS has been growing by 6.58% on average per year.
The Revenue for LFT has decreased by -10.98% in the past year. This is quite bad
LFT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.10% yearly.
EPS 1Y (TTM)-7.5%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-37.05%
3.2 Future
Based on estimates for the next years, LFT will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.41% on average per year.
Based on estimates for the next years, LFT will show a very negative growth in Revenue. The Revenue will decrease by -15.92% on average per year.
EPS Next Y-17.36%
EPS Next 2Y-13.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-26.67%
Revenue Next 2Y-15.92%
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
The Price/Earnings ratio is 6.86, which indicates a rather cheap valuation of LFT.
83.08% of the companies in the same industry are more expensive than LFT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.57, LFT is valued rather cheaply.
LFT is valuated cheaply with a Price/Forward Earnings ratio of 7.70.
Based on the Price/Forward Earnings ratio, LFT is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.41. LFT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LFT is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LFT has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LFT's earnings are expected to decrease with -13.41% in the coming years.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-13.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 12.26%, which is a nice return.
Compared to an average industry Dividend Yield of 12.22, LFT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, LFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.26% |
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
246.53% of the earnings are spent on dividend by LFT. 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-13.41%
EPS Next 3YN/A
2.54
-0.05 (-1.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.65%
Inst Owner Change-1.01%
Ins Owners2.94%
Ins Owner Change0.47%
Market Cap132.89M
Analysts74.29
Price Target2.93 (15.35%)
Short Float %0.16%
Short Ratio0.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.26% |
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)1.47%
EPS NQ rev (1m)-11.54%
EPS NQ rev (3m)-23.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.09%
Revenue NQ rev (1m)-7.8%
Revenue NQ rev (3m)-13.03%
Revenue NY rev (1m)-9.01%
Revenue NY rev (3m)-15.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 7.7 | ||
| P/S | 1.22 | ||
| P/FCF | 6 | ||
| P/OCF | 6 | ||
| P/B | 0.57 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.37
EY14.57%
EPS(NY)0.33
Fwd EY12.99%
FCF(TTM)0.42
FCFY16.68%
OCF(TTM)0.42
OCFY16.68%
SpS2.08
BVpS4.43
TBVpS4.43
PEG (NY)N/A
PEG (5Y)1.04
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 | -0.74 |
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)-7.5%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-46.67%
EPS Next Y-17.36%
EPS Next 2Y-13.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-37.05%
Revenue Next Year-26.67%
Revenue Next 2Y-15.92%
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%