ADVANCED FLOWER CAPITAL INC (AFCG) Stock Fundamental Analysis
NASDAQ:AFCG - Nasdaq - US00109K1051 - REIT - Currency: USD
AFCG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While AFCG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AFCG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AFCG was profitable.
AFCG had a positive operating cash flow in the past year.
AFCG had positive earnings in 4 of the past 5 years.
AFCG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AFCG's Return On Assets of 2.34% is amongst the best of the industry. AFCG outperforms 93.75% of its industry peers.
With a Return On Equity value of 4.17%, AFCG perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
The Return On Invested Capital of AFCG (10.14%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFCG is significantly above the industry average of 1.57%.
The 3 year average ROIC (7.42%) for AFCG is below the current ROIC(10.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 4.17% | ||
| ROIC | 10.14% |
ROA(3y)5.31%
ROA(5y)N/A
ROE(3y)8.28%
ROE(5y)N/A
ROIC(3y)7.42%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 14.86%, AFCG is in line with its industry, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Profit Margin of AFCG has declined.
With an excellent Operating Margin value of 65.44%, AFCG belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
AFCG's Operating Margin has improved in the last couple of years.
AFCG has a better Gross Margin (79.41%) than 93.75% of its industry peers.
In the last couple of years the Gross Margin of AFCG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.44% | ||
| PM (TTM) | 14.86% | ||
| GM | 79.41% |
OM growth 3Y4.53%
OM growth 5YN/A
PM growth 3Y-24.33%
PM growth 5YN/A
GM growth 3Y-5.98%
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, AFCG has more shares outstanding
AFCG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that AFCG is in the distress zone and has some risk of bankruptcy.
AFCG's Altman-Z score of 1.15 is amongst the best of the industry. AFCG outperforms 87.50% of its industry peers.
AFCG has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as AFCG would need 3.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.46, AFCG belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that AFCG is not too dependend on debt financing.
The Debt to Equity ratio of AFCG (0.43) is better than 98.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 1.15 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
AFCG has a Current Ratio of 1.70. This is a normal value and indicates that AFCG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.70, AFCG belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 1.70 indicates that AFCG should not have too much problems paying its short term obligations.
The Quick ratio of AFCG (1.70) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The earnings per share for AFCG have decreased strongly by -12.90% in the last year.
The Earnings Per Share has been growing by 67.28% on average over the past years. This is a very strong growth
AFCG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.30%.
Measured over the past years, AFCG shows a very strong growth in Revenue. The Revenue has been growing by 123.88% on average per year.
EPS 1Y (TTM)-12.9%
EPS 3Y67.28%
EPS 5YN/A
EPS Q2Q%-28.57%
Revenue 1Y (TTM)-13.3%
Revenue growth 3Y123.88%
Revenue growth 5YN/A
Sales Q2Q%-41.85%
3.2 Future
Based on estimates for the next years, AFCG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.47% on average per year.
AFCG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.94% yearly.
EPS Next Y-11.7%
EPS Next 2Y-11%
EPS Next 3Y-6.14%
EPS Next 5Y10.47%
Revenue Next Year-11.67%
Revenue Next 2Y-9.68%
Revenue Next 3Y-2.72%
Revenue Next 5Y11.94%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.19, the valuation of AFCG can be described as very cheap.
AFCG's Price/Earnings ratio is rather cheap when compared to the industry. AFCG is cheaper than 98.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, AFCG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.90, the valuation of AFCG can be described as very cheap.
AFCG's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFCG is cheaper than 96.88% of the companies in the same industry.
AFCG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.19 | ||
| Fwd PE | 4.9 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, AFCG is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of AFCG may justify a higher PE ratio.
A cheap valuation may be justified as AFCG's earnings are expected to decrease with -6.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11%
EPS Next 3Y-6.14%
5. Dividend
5.1 Amount
AFCG has a Yearly Dividend Yield of 18.88%, which is a nice return.
AFCG's Dividend Yield is rather good when compared to the industry average which is at 12.96. AFCG pays more dividend than 98.44% of the companies in the same industry.
AFCG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.88% |
5.2 History
AFCG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
495.97% of the earnings are spent on dividend by AFCG. This is not a sustainable payout ratio.
DP495.97%
EPS Next 2Y-11%
EPS Next 3Y-6.14%
7.91
-0.67 (-7.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners34.63%
Inst Owner Change-93.31%
Ins Owners18.21%
Ins Owner Change2.04%
Market Cap173.62M
Analysts80
Price Target12.24 (54.74%)
Short Float %3.9%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.88% |
Yearly Dividend2.08
Dividend Growth(5Y)N/A
DP495.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-3.34%
Max EPS beat(2)6.55%
EPS beat(4)1
Avg EPS beat(4)-1.48%
Min EPS beat(4)-5.81%
Max EPS beat(4)6.55%
EPS beat(8)2
Avg EPS beat(8)-2%
EPS beat(12)4
Avg EPS beat(12)-0.96%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-6.5%
Min Revenue beat(2)-27.48%
Max Revenue beat(2)14.48%
Revenue beat(4)1
Avg Revenue beat(4)-6.01%
Min Revenue beat(4)-27.48%
Max Revenue beat(4)14.48%
Revenue beat(8)2
Avg Revenue beat(8)-6.27%
Revenue beat(12)4
Avg Revenue beat(12)-3.59%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.76%
PT rev (3m)-2.04%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-22.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-4.8%
Revenue NQ rev (3m)-22.95%
Revenue NY rev (1m)-1.35%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.19 | ||
| Fwd PE | 4.9 | ||
| P/S | 3 | ||
| P/FCF | 6.79 | ||
| P/OCF | 6.79 | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.89
EY23.89%
EPS(NY)1.62
Fwd EY20.43%
FCF(TTM)1.17
FCFY14.73%
OCF(TTM)1.17
OCFY14.73%
SpS2.63
BVpS9.39
TBVpS9.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 4.17% | ||
| ROCE | 12.84% | ||
| ROIC | 10.14% | ||
| ROICexc | 17.32% | ||
| ROICexgc | 17.32% | ||
| OM | 65.44% | ||
| PM (TTM) | 14.86% | ||
| GM | 79.41% | ||
| FCFM | 44.24% |
ROA(3y)5.31%
ROA(5y)N/A
ROE(3y)8.28%
ROE(5y)N/A
ROIC(3y)7.42%
ROIC(5y)N/A
ROICexc(3y)10.71%
ROICexc(5y)N/A
ROICexgc(3y)10.71%
ROICexgc(5y)N/A
ROCE(3y)9.39%
ROCE(5y)N/A
ROICexcg growth 3Y54.28%
ROICexcg growth 5YN/A
ROICexc growth 3Y54.28%
ROICexc growth 5YN/A
OM growth 3Y4.53%
OM growth 5YN/A
PM growth 3Y-24.33%
PM growth 5YN/A
GM growth 3Y-5.98%
GM growth 5YN/A
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.13 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 297.82% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 1.15 |
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)77.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.9%
EPS 3Y67.28%
EPS 5YN/A
EPS Q2Q%-28.57%
EPS Next Y-11.7%
EPS Next 2Y-11%
EPS Next 3Y-6.14%
EPS Next 5Y10.47%
Revenue 1Y (TTM)-13.3%
Revenue growth 3Y123.88%
Revenue growth 5YN/A
Sales Q2Q%-41.85%
Revenue Next Year-11.67%
Revenue Next 2Y-9.68%
Revenue Next 3Y-2.72%
Revenue Next 5Y11.94%
EBIT growth 1Y-14.5%
EBIT growth 3Y134.03%
EBIT growth 5YN/A
EBIT Next Year32.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.98%
FCF growth 3Y140.82%
FCF growth 5YN/A
OCF growth 1Y-12.98%
OCF growth 3Y140.82%
OCF growth 5YN/A