AFFIRM HOLDINGS INC (AFRM)
US00827B1061 - Common Stock
We assign a fundamental rating of 3 out of 10 to AFRM. AFRM was compared to 100 industry peers in the Financial Services industry. AFRM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, AFRM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AFRM had negative earnings in the past year.
AFRM had a positive operating cash flow in the past year.
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.
1.2 Ratios
AFRM's Return On Assets of -4.40% is on the low side compared to the rest of the industry. AFRM is outperformed by 88.00% of its industry peers.
With a Return On Equity value of -15.74%, AFRM is not doing good in the industry: 87.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.4% | ||
| ROE | -15.74% | ||
| 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
1.3 Margins
The Profit Margin and Operating Margin and Gross Margin are not available for AFRM so they could not be analyzed.
| Industry Rank | Sector 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
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
The number of shares outstanding for AFRM has been increased compared to 5 years ago.
AFRM has a worse debt/assets ratio than last year.
2.2 Solvency
AFRM has an Altman-Z score of 1.54. This is a bad value and indicates that AFRM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.54, AFRM is in the better half of the industry, outperforming 71.00% of the companies in the same industry.
The Debt to FCF ratio of AFRM is 18.22, which is on the high side as it means it would take AFRM, 18.22 years of fcf income to pay off all of its debts.
AFRM's Debt to FCF ratio of 18.22 is in line compared to the rest of the industry. AFRM outperforms 45.00% of its industry peers.
AFRM has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
AFRM has a Debt to Equity ratio of 2.44. This is in the lower half of the industry: AFRM underperforms 73.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 18.22 | ||
| Altman-Z | 1.54 |
ROIC/WACCN/A
WACC7.99%
2.3 Liquidity
A Current Ratio of 4.23 indicates that AFRM has no problem at all paying its short term obligations.
The Current ratio of AFRM (4.23) is better than 89.00% of its industry peers.
AFRM has a Quick Ratio of 4.23. This indicates that AFRM is financially healthy and has no problem in meeting its short term obligations.
AFRM's Quick ratio of 4.23 is amongst the best of the industry. AFRM outperforms 89.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 53.44% over the past year.
AFRM shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.96%.
The Revenue has been growing by 51.68% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)53.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.61%
Revenue 1Y (TTM)46.96%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%-18.83%
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 41.09% on average per year.
Based on estimates for the next years, AFRM will show a quite strong growth in Revenue. The Revenue will grow by 15.45% on average per year.
EPS Next Y62.67%
EPS Next 2Y51.45%
EPS Next 3Y41.09%
EPS Next 5YN/A
Revenue Next Year35%
Revenue Next 2Y28.45%
Revenue Next 3Y25.87%
Revenue Next 5Y15.45%
3.3 Evolution
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
The Price/Earnings Ratio is negative for AFRM. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 133.23, AFRM can be considered very expensive at the moment.
AFRM's Price/Forward Earnings ratio is rather expensive when compared to the industry. AFRM is more expensive than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, AFRM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 133.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFRM indicates a slightly more expensive valuation: AFRM is more expensive than 61.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.27 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AFRM's earnings are expected to grow with 41.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.45%
EPS Next 3Y41.09%
5. Dividend
5.1 Amount
AFRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AFFIRM HOLDINGS INC
NASDAQ:AFRM (11/21/2024, 8:11:08 PM)
Premarket: 65.23 -0.51 (-0.78%)65.74
+2.55 (+4.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 133.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.4% | ||
| ROE | -15.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)53.44%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y62.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)46.96%
Revenue growth 3Y39.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y