LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
NYSE:LFT - New York Stock Exchange, Inc. - US55025L1089 - REIT - Currency: USD
Overall LFT gets a fundamental rating of 5 out of 10. We evaluated LFT against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While LFT has a great profitability rating, there are quite some concerns on its financial health. LFT is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
LFT had positive earnings in the past year.
In the past year LFT had a positive cash flow from operations.
Each year in the past 5 years LFT has been profitable.
Each year in the past 5 years LFT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LFT (1.59%) is better than 86.15% of its industry peers.
LFT has a Return On Equity of 7.53%. This is amongst the best in the industry. LFT outperforms 89.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.60%, LFT belongs to the top of the industry, outperforming 81.54% 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 1.69%.
The last Return On Invested Capital (1.60%) for LFT is above the 3 year average (1.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 7.53% | ||
| ROIC | 1.6% |
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 14.66%. This is in the better half of the industry: LFT outperforms 67.69% of its industry peers.
In the last couple of years the Profit Margin of LFT has grown nicely.
The Operating Margin of LFT (18.48%) is better than 66.15% of 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 28.43%, LFT is in the better half of the industry, outperforming 64.62% 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 | 18.48% | ||
| PM (TTM) | 14.66% | ||
| GM | 28.43% |
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.
Compared to 5 years ago, LFT has more shares outstanding
Compared to 1 year ago, LFT has an improved debt to assets ratio.
2.2 Solvency
LFT has an Altman-Z score of -0.72. This is a bad value and indicates that LFT is not financially healthy and even has some risk of bankruptcy.
LFT has a worse Altman-Z score (-0.72) than 75.38% of its industry peers.
The Debt to FCF ratio of LFT is 32.28, which is on the high side as it means it would take LFT, 32.28 years of fcf income to pay off all of its debts.
LFT has a better Debt to FCF ratio (32.28) than 69.23% of its industry peers.
A Debt/Equity ratio of 3.68 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 3.68, LFT is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 32.28 | ||
| Altman-Z | -0.72 |
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.
Looking at the Current ratio, with a value of 0.09, LFT is doing worse than 61.54% of the companies in the same industry.
A Quick Ratio of 0.09 indicates that LFT may have some problems paying its short term obligations.
LFT has a Quick ratio of 0.09. This is in the lower half of the industry: LFT underperforms 61.54% of its industry peers.
| 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.
Looking at the last year, LFT shows a quite strong growth in Revenue. The Revenue has grown by 11.85% 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)-7.5%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-78.16%
3.2 Future
The Earnings Per Share is expected to decrease by -8.78% on average over the next years.
Based on estimates for the next years, LFT will show a very negative growth in Revenue. The Revenue will decrease by -12.60% on average per year.
EPS Next Y-23.1%
EPS Next 2Y-8.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.41%
Revenue Next 2Y-12.6%
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
With a Price/Earnings ratio of 6.73, the valuation of LFT can be described as very cheap.
Based on the Price/Earnings ratio, LFT is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LFT to the average of the S&P500 Index (24.85), we can say LFT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.80, the valuation of LFT can be described as very cheap.
84.62% of the companies in the same industry are more expensive than LFT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, LFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.73 | ||
| Fwd PE | 6.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 90.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The excellent 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 -8.78% in the coming years.
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y-8.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.28%, LFT is a good candidate for dividend investing.
LFT's Dividend Yield is comparable with the industry average which is at 13.93.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.28% |
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 recently.
Dividend Growth(5Y)5.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LFT pays out 114.02% 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.
DP114.02%
EPS Next 2Y-8.78%
EPS Next 3YN/A
NYSE:LFT (5/15/2025, 4:15:00 PM)
2.49
+0.08 (+3.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.59%
Inst Owner Change0.63%
Ins Owners2.85%
Ins Owner Change0.23%
Market Cap130.28M
Analysts74.29
Price Target2.93 (17.67%)
Short Float %0.14%
Short Ratio0.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.28% |
Yearly Dividend0.39
Dividend Growth(5Y)5.24%
DP114.02%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.74%
Min EPS beat(2)7.62%
Max EPS beat(2)17.87%
EPS beat(4)3
Avg EPS beat(4)9.29%
Min EPS beat(4)-17.49%
Max EPS beat(4)29.14%
EPS beat(8)4
Avg EPS beat(8)-10.98%
EPS beat(12)5
Avg EPS beat(12)-14.9%
EPS beat(16)8
Avg EPS beat(16)-6.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-6%
Max Revenue beat(2)5.92%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-6%
Max Revenue beat(4)5.92%
Revenue beat(8)5
Avg Revenue beat(8)2.98%
Revenue beat(12)8
Avg Revenue beat(12)5.61%
Revenue beat(16)12
Avg Revenue beat(16)20.09%
PT rev (1m)1.47%
PT rev (3m)1.47%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-4.26%
EPS NY rev (1m)-3.18%
EPS NY rev (3m)-15.4%
Revenue NQ rev (1m)2.16%
Revenue NQ rev (3m)-6.41%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)-7.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.73 | ||
| Fwd PE | 6.8 | ||
| P/S | 1.07 | ||
| P/FCF | 4.8 | ||
| P/OCF | 4.8 | ||
| P/B | 0.55 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.37
EY14.86%
EPS(NY)0.37
Fwd EY14.7%
FCF(TTM)0.52
FCFY20.82%
OCF(TTM)0.52
OCFY20.82%
SpS2.33
BVpS4.55
TBVpS4.55
PEG (NY)N/A
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 7.53% | ||
| ROCE | 7.89% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.71% | ||
| ROICexgc | 1.71% | ||
| OM | 18.48% | ||
| PM (TTM) | 14.66% | ||
| GM | 28.43% | ||
| FCFM | 22.21% |
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-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 32.28 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.29 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 151.48% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | -0.72 |
F-Score6
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-23.1%
EPS Next 2Y-8.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.85%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-78.16%
Revenue Next Year-19.41%
Revenue Next 2Y-12.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.08%
EBIT growth 3Y22.43%
EBIT growth 5Y30.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y9.67%
FCF growth 3Y25.12%
FCF growth 5Y30.1%
OCF growth 1Y9.67%
OCF growth 3Y25.12%
OCF growth 5Y30.1%