LUMENT FINANCE TRUST INC (LFT)
US55025L1089 - REIT
We assign a fundamental rating of 5 out of 10 to LFT. LFT was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of LFT while its profitability can be described as average. LFT is growing strongly while it also seems undervalued. This is an interesting combination
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.
Each year in the past 5 years LFT has been profitable.
In the past 5 years LFT always reported a positive cash flow from operatings.
1.2 Ratios
LFT has a better Return On Assets (1.03%) than 63.08% of its industry peers.
Looking at the Return On Equity, with a value of 6.22%, LFT is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
LFT has a better Return On Invested Capital (1.08%) than 66.15% of its industry peers.
LFT had an Average Return On Invested Capital over the past 3 years of 0.89%. This is in line with the industry average of 1.58%.
The last Return On Invested Capital (1.08%) for LFT is above the 3 year average (0.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 6.22% | ||
| ROIC | 1.08% |
ROA(3y)0.73%
ROA(5y)0.79%
ROE(3y)4.23%
ROE(5y)4.51%
ROIC(3y)0.89%
ROIC(5y)0.91%
1.3 Margins
The Profit Margin of LFT (13.71%) is comparable to the rest of the industry.
LFT's Profit Margin has declined in the last couple of years.
LFT has a better Operating Margin (17.96%) than 63.08% of its industry peers.
LFT's Operating Margin has declined in the last couple of years.
LFT's Gross Margin of 31.49% is in line compared to the rest of the industry. LFT outperforms 50.77% of its industry peers.
In the last couple of years the Gross Margin of LFT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.96% | ||
| PM (TTM) | 13.71% | ||
| GM | 31.49% |
OM growth 3Y-12.79%
OM growth 5YN/A
PM growth 3Y-18.14%
PM growth 5YN/A
GM growth 3Y-16.84%
GM growth 5YN/A
2. Health
2.1 Basic Checks
LFT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LFT has been increased compared to 5 years ago.
LFT has a worse debt/assets ratio than last year.
2.2 Solvency
LFT has an Altman-Z score of -0.86. This is a bad value and indicates that LFT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LFT (-0.86) is worse than 84.62% of its industry peers.
The Debt to FCF ratio of LFT is 48.24, which is on the high side as it means it would take LFT, 48.24 years of fcf income to pay off all of its debts.
LFT has a Debt to FCF ratio (48.24) which is in line with its industry peers.
A Debt/Equity ratio of 4.96 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 4.96, LFT is doing worse than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | 48.24 | ||
| Altman-Z | -0.86 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
LFT has a Current Ratio of 0.05. 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 Current ratio (0.05) than 81.54% of its industry peers.
A Quick Ratio of 0.05 indicates that LFT may have some problems paying its short term obligations.
The Quick ratio of LFT (0.05) is worse than 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
LFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.58%, which is quite impressive.
LFT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.21% yearly.
LFT shows a strong growth in Revenue. In the last year, the Revenue has grown by 92.67%.
The Revenue has been growing by 33.66% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.58%
EPS 3Y-13.78%
EPS 5Y-4.21%
EPS growth Q2Q66.67%
Revenue 1Y (TTM)92.67%
Revenue growth 3Y48.12%
Revenue growth 5Y33.66%
Revenue growth Q2Q68.49%
3.2 Future
LFT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.44% yearly.
LFT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y66.65%
EPS Next 2Y24.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.33%
Revenue Next 2Y5.25%
Revenue Next 3YN/A
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
LFT is valuated reasonably with a Price/Earnings ratio of 9.20.
Based on the Price/Earnings ratio, LFT is valued a bit cheaper than 63.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of LFT to the average of the S&P500 Index (28.28), we can say LFT is valued rather cheaply.
A Price/Forward Earnings ratio of 5.52 indicates a rather cheap valuation of LFT.
93.85% of the companies in the same industry are more expensive than LFT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.88. LFT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 5.52 |
4.2 Price Multiples
LFT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LFT is cheaper than 87.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.86 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LFT may justify a higher PE ratio.
A more expensive valuation may be justified as LFT's earnings are expected to grow with 24.44% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y24.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 12.44%, which is a nice return.
LFT's Dividend Yield is slightly below the industry average, which is at 13.12.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.44% |
5.2 History
The dividend of LFT decreases each year by -2.10%.
LFT has been paying a dividend for at least 10 years, so it has a reliable track record.
LFT has decreased its dividend recently.
Dividend Growth(5Y)-2.1%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
118.90% of the earnings are spent on dividend by LFT. This is not a sustainable payout ratio.
DP118.9%
EPS Next 2Y24.44%
EPS Next 3YN/A
LUMENT FINANCE TRUST INC
NYSE:LFT (5/3/2024, 7:04:00 PM)
2.3
+0.05 (+2.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap120.20M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.44% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 5.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 6.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.96% | ||
| PM (TTM) | 13.71% | ||
| GM | 31.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)31.58%
EPS 3Y-13.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y66.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)92.67%
Revenue growth 3Y48.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y