0.436 USD
+0.01 (+1.28%)
0.444 USD
+0.01 (+1.83%)
LMFA gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. LMFA may be in some trouble as it scores bad on both profitability and health. LMFA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- LMFA had negative earnings in the past year.
- LMFA had a negative operating cash flow in the past year.
- In the past 5 years LMFA reported 4 times negative net income.
- LMFA had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -20.78%, LMFA is not doing good in the industry: 73.65% of the companies in the same industry are doing better.
- The Return On Equity of LMFA (-24.93%) is worse than 63.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.78% | ||
| ROE | -24.93% | ||
| ROIC | N/A |
ROA(3y)-43.09%
ROA(5y)-30.89%
ROE(3y)-47.2%
ROE(5y)-33.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- LMFA's Gross Margin of 19.50% is on the low side compared to the rest of the industry. LMFA is outperformed by 83.39% of its industry peers.
- LMFA's Gross Margin has declined in the last couple of years.
- The Profit Margin and Operating Margin are not available for LMFA so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 19.5% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-40.58%
GM growth 5Y-10.08%
2. Health
2.1 Basic Checks
- LMFA does not have a ROIC to compare to the WACC, probably because it is not profitable.
- LMFA has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for LMFA has been increased compared to 5 years ago.
- The debt/assets ratio for LMFA is higher compared to a year ago.
2.2 Solvency
- LMFA has an Altman-Z score of -1.81. This is a bad value and indicates that LMFA is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of LMFA (-1.81) is worse than 78.70% of its industry peers.
- A Debt/Equity ratio of 0.03 indicates that LMFA is not too dependend on debt financing.
- LMFA has a better Debt to Equity ratio (0.03) than 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.81 |
ROIC/WACCN/A
WACC12.35%
2.3 Liquidity
- LMFA has a Current Ratio of 1.84. This is a normal value and indicates that LMFA is financially healthy and should not expect problems in meeting its short term obligations.
- LMFA's Current ratio of 1.84 is in line compared to the rest of the industry. LMFA outperforms 55.60% of its industry peers.
- A Quick Ratio of 1.84 indicates that LMFA should not have too much problems paying its short term obligations.
- LMFA's Quick ratio of 1.84 is in line compared to the rest of the industry. LMFA outperforms 55.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
- LMFA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.14%, which is quite impressive.
- LMFA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -52.51%.
- Measured over the past years, LMFA shows a very strong growth in Revenue. The Revenue has been growing by 35.75% on average per year.
EPS 1Y (TTM)46.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.84%
Revenue 1Y (TTM)-52.51%
Revenue growth 3Y-9.25%
Revenue growth 5Y35.75%
Sales Q2Q%73.55%
3.2 Future
- Based on estimates for the next years, LMFA will show a very strong growth in Earnings Per Share. The EPS will grow by 27.92% on average per year.
- The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y57.92%
EPS Next 2Y27.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.43%
Revenue Next 2Y4.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- 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
- LMFA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for LMFA. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A more expensive valuation may be justified as LMFA's earnings are expected to grow with 27.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- LMFA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LM FUNDING AMERICA INC / LMFA FAQ
What is the ChartMill fundamental rating of LM FUNDING AMERICA INC (LMFA) stock?
ChartMill assigns a fundamental rating of 2 / 10 to LMFA.
What is the valuation status for LMFA stock?
ChartMill assigns a valuation rating of 1 / 10 to LM FUNDING AMERICA INC (LMFA). This can be considered as Overvalued.
What is the profitability of LMFA stock?
LM FUNDING AMERICA INC (LMFA) has a profitability rating of 0 / 10.
Can you provide the financial health for LMFA stock?
The financial health rating of LM FUNDING AMERICA INC (LMFA) is 2 / 10.