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AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

NASDAQ:AFRM - Nasdaq - US00827B1061 - Common Stock - Currency: USD

64.15  +2.44 (+3.95%)

Premarket: 65.4048 +1.25 (+1.96%)

Fundamental Rating

3

AFRM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. The financial health of AFRM is average, but there are quite some concerns on its profitability. AFRM shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year AFRM has reported negative net income.
AFRM had a positive operating cash flow in the past year.
AFRM had negative earnings in each of the past 5 years.
In multiple years AFRM reported negative operating cash flow during the last 5 years.
AFRM Yearly Net Income VS EBIT VS OCF VS FCFAFRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 -500M -1B

1.2 Ratios

AFRM has a worse Return On Assets (-1.90%) than 84.16% of its industry peers.
The Return On Equity of AFRM (-7.14%) is worse than 80.20% of its industry peers.
Industry RankSector Rank
ROA -1.9%
ROE -7.14%
ROIC N/A
ROA(3y)-9.22%
ROA(5y)-9.14%
ROE(3y)-28.28%
ROE(5y)-26.14%
ROIC(3y)N/A
ROIC(5y)N/A
AFRM Yearly ROA, ROE, ROICAFRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -10 -20 -30

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for AFRM so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
AFRM Yearly Profit, Operating, Gross MarginsAFRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 -20 -40 -60

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4

2. Health

2.1 Basic Checks

AFRM does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, AFRM has more shares outstanding
AFRM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AFRM has a worse debt to assets ratio.
AFRM Yearly Shares OutstandingAFRM Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 100M 200M 300M
AFRM Yearly Total Debt VS Total AssetsAFRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

Based on the Altman-Z score of 1.52, we must say that AFRM is in the distress zone and has some risk of bankruptcy.
AFRM has a Altman-Z score of 1.52. This is in the better half of the industry: AFRM outperforms 66.34% of its industry peers.
AFRM has a debt to FCF ratio of 11.92. This is a negative value and a sign of low solvency as AFRM would need 11.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.92, AFRM is in line with its industry, outperforming 50.49% of the companies in the same industry.
AFRM has a Debt/Equity ratio of 2.62. This is a high value indicating a heavy dependency on external financing.
AFRM has a worse Debt to Equity ratio (2.62) than 71.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.62
Debt/FCF 11.92
Altman-Z 1.52
ROIC/WACCN/A
WACC13.29%
AFRM Yearly LT Debt VS Equity VS FCFAFRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 4.20 indicates that AFRM has no problem at all paying its short term obligations.
The Current ratio of AFRM (4.20) is better than 88.12% of its industry peers.
A Quick Ratio of 4.20 indicates that AFRM has no problem at all paying its short term obligations.
AFRM has a better Quick ratio (4.20) than 89.11% of its industry peers.
Industry RankSector Rank
Current Ratio 4.2
Quick Ratio 4.2
AFRM Yearly Current Assets VS Current LiabilitesAFRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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7

3. Growth

3.1 Past

AFRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.90%, which is quite impressive.
The Revenue has grown by 41.92% in the past year. This is a very strong growth!
AFRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 51.68% yearly.
EPS 1Y (TTM)73.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%142.59%
Revenue 1Y (TTM)41.92%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%46.57%

3.2 Future

Based on estimates for the next years, AFRM will show a very strong growth in Earnings Per Share. The EPS will grow by 40.21% on average per year.
AFRM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.01% yearly.
EPS Next Y92.34%
EPS Next 2Y55.12%
EPS Next 3Y40.21%
EPS Next 5YN/A
Revenue Next Year40.89%
Revenue Next 2Y32.26%
Revenue Next 3Y29.84%
Revenue Next 5Y26.01%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
AFRM Yearly Revenue VS EstimatesAFRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
AFRM Yearly EPS VS EstimatesAFRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 -1 -2 -3

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AFRM. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 93.98, AFRM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFRM indicates a slightly more expensive valuation: AFRM is more expensive than 78.22% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. AFRM is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 93.98
AFRM Price Earnings VS Forward Price EarningsAFRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFRM indicates a slightly more expensive valuation: AFRM is more expensive than 67.33% of the companies listed in the same industry.
AFRM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 33.28
EV/EBITDA 172.55
AFRM Per share dataAFRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

AFRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AFRM's earnings are expected to grow with 40.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.12%
EPS Next 3Y40.21%

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0

5. Dividend

5.1 Amount

No dividends for AFRM!.
Industry RankSector Rank
Dividend Yield N/A

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AFFIRM HOLDINGS INC

NASDAQ:AFRM (2/28/2025, 8:00:00 PM)

Premarket: 65.4048 +1.25 (+1.96%)

64.15

+2.44 (+3.95%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)05-06 2025-05-06/amc
Inst Owners78.57%
Inst Owner Change5.93%
Ins Owners1.1%
Ins Owner Change-0.71%
Market Cap20.40B
Analysts75.38
Price Target74.81 (16.62%)
Short Float %5.73%
Short Ratio2.25
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)130.5%
Min EPS beat(2)11.21%
Max EPS beat(2)249.78%
EPS beat(4)4
Avg EPS beat(4)92.9%
Min EPS beat(4)11.21%
Max EPS beat(4)249.78%
EPS beat(8)8
Avg EPS beat(8)58.24%
EPS beat(12)9
Avg EPS beat(12)43.05%
EPS beat(16)9
Avg EPS beat(16)-8.44%
Revenue beat(2)2
Avg Revenue beat(2)4.18%
Min Revenue beat(2)3.13%
Max Revenue beat(2)5.23%
Revenue beat(4)4
Avg Revenue beat(4)4.41%
Min Revenue beat(4)2.22%
Max Revenue beat(4)7.06%
Revenue beat(8)8
Avg Revenue beat(8)5.88%
Revenue beat(12)8
Avg Revenue beat(12)-1.67%
Revenue beat(16)9
Avg Revenue beat(16)-2.16%
PT rev (1m)17.65%
PT rev (3m)45.81%
EPS NQ rev (1m)31.03%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)73.02%
EPS NY rev (3m)76.38%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)2.18%
Revenue NY rev (3m)2.54%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 93.98
P/S 8.16
P/FCF 33.28
P/OCF 25.97
P/B 7.32
P/tB 9.06
EV/EBITDA 172.55
EPS(TTM)-0.65
EYN/A
EPS(NY)0.68
Fwd EY1.06%
FCF(TTM)1.93
FCFY3%
OCF(TTM)2.47
OCFY3.85%
SpS7.86
BVpS8.76
TBVpS7.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.9%
ROE -7.14%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 24.51%
ROA(3y)-9.22%
ROA(5y)-9.14%
ROE(3y)-28.28%
ROE(5y)-26.14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 2.62
Debt/FCF 11.92
Debt/EBITDA 47.56
Cap/Depr 84.69%
Cap/Sales 6.91%
Interest Coverage N/A
Cash Conversion 511.48%
Profit Quality N/A
Current Ratio 4.2
Quick Ratio 4.2
Altman-Z 1.52
F-Score6
WACC13.29%
ROIC/WACCN/A
Cap/Depr(3y)131.95%
Cap/Depr(5y)143.97%
Cap/Sales(3y)8.6%
Cap/Sales(5y)6.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%142.59%
EPS Next Y92.34%
EPS Next 2Y55.12%
EPS Next 3Y40.21%
EPS Next 5YN/A
Revenue 1Y (TTM)41.92%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%46.57%
Revenue Next Year40.89%
Revenue Next 2Y32.26%
Revenue Next 3Y29.84%
Revenue Next 5Y26.01%
EBIT growth 1Y91.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year219.66%
EBIT Next 3Y60.94%
EBIT Next 5YN/A
FCF growth 1Y401.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1320.18%
OCF growth 3YN/A
OCF growth 5YN/A