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AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

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

47.04  +3.22 (+7.35%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AFRM. AFRM was compared to 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

AFRM had negative earnings in the past year.
In the past year AFRM had a positive cash flow from operations.
In the past 5 years AFRM always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: AFRM reported negative operating cash flow in multiple 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 83.17% of its industry peers.
AFRM has a worse Return On Equity (-7.14%) than 82.18% 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.
AFRM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AFRM has more shares outstanding
AFRM has a worse debt/assets ratio than last year.
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 1.02, we must say that AFRM is in the distress zone and has some risk of bankruptcy.
AFRM's Altman-Z score of 1.02 is fine compared to the rest of the industry. AFRM outperforms 63.37% 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.
AFRM has a Debt to FCF ratio (11.92) which is comparable to the rest of the industry.
AFRM has a Debt/Equity ratio of 2.62. This is a high value indicating a heavy dependency on external financing.
AFRM's Debt to Equity ratio of 2.62 is on the low side compared to the rest of the industry. AFRM is outperformed by 70.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.62
Debt/FCF 11.92
Altman-Z 1.02
ROIC/WACCN/A
WACC12.54%
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

AFRM has a Current Ratio of 4.20. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
AFRM's Current ratio of 4.20 is amongst the best of the industry. AFRM outperforms 92.08% of its industry peers.
AFRM has a Quick Ratio of 4.20. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.20, AFRM belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
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

The Earnings Per Share has grown by an impressive 73.90% over the past year.
Looking at the last year, AFRM shows a very strong growth in Revenue. The Revenue has grown by 41.92%.
The Revenue has been growing by 51.68% on average over the past years. This is a very strong growth!
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

AFRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.49% yearly.
AFRM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.64% yearly.
EPS Next Y99.34%
EPS Next 2Y56.86%
EPS Next 3Y43.49%
EPS Next 5YN/A
Revenue Next Year41.19%
Revenue Next 2Y32.67%
Revenue Next 3Y30.24%
Revenue Next 5Y25.64%

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 2021 2022 2023 2024 2025 2026 2027 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.
AFRM is valuated quite expensively with a Price/Forward Earnings ratio of 60.79.
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 74.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. AFRM is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 60.79
AFRM Price Earnings VS Forward Price EarningsAFRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40 60 -60

4.2 Price Multiples

67.33% of the companies in the same industry are cheaper than AFRM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFRM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 24.56
EV/EBITDA 131.05
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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AFRM's earnings are expected to grow with 43.49% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.86%
EPS Next 3Y43.49%

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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 (4/23/2025, 11:28:08 AM)

47.04

+3.22 (+7.35%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)05-08 2025-05-08/amc
Inst Owners78.57%
Inst Owner Change0.18%
Ins Owners1.1%
Ins Owner Change-0.51%
Market Cap15.06B
Analysts75.86
Price Target73.11 (55.42%)
Short Float %4.58%
Short Ratio1.75
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)-2.26%
PT rev (3m)21.72%
EPS NQ rev (1m)41.1%
EPS NQ rev (3m)65.49%
EPS NY rev (1m)91.4%
EPS NY rev (3m)97.93%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)2.5%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 60.79
P/S 6.02
P/FCF 24.56
P/OCF 19.16
P/B 5.41
P/tB 6.69
EV/EBITDA 131.05
EPS(TTM)-0.65
EYN/A
EPS(NY)0.77
Fwd EY1.64%
FCF(TTM)1.92
FCFY4.07%
OCF(TTM)2.45
OCFY5.22%
SpS7.81
BVpS8.7
TBVpS7.03
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 1.02
F-Score6
WACC12.54%
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 Y99.34%
EPS Next 2Y56.86%
EPS Next 3Y43.49%
EPS Next 5YN/A
Revenue 1Y (TTM)41.92%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%46.57%
Revenue Next Year41.19%
Revenue Next 2Y32.67%
Revenue Next 3Y30.24%
Revenue Next 5Y25.64%
EBIT growth 1Y91.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year234.81%
EBIT Next 3Y63.43%
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