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AFFIRM HOLDINGS INC (AFRM) Stock Fundamental Analysis

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

62.1917  +0.09 (+0.15%)

Fundamental Rating

3

AFRM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 102 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. AFRM is valued quite expensive, but it does show an excellent growth.


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.
In the past year AFRM had a positive cash flow from operations.
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 (-4.40%) than 86.27% of its industry peers.
With a Return On Equity value of -15.74%, AFRM is not doing good in the industry: 84.31% of the companies in the same industry are doing better.
Industry RankSector 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
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.
The number of shares outstanding for AFRM has been increased compared to 1 year ago.
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.
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

AFRM has an Altman-Z score of 1.45. This is a bad value and indicates that AFRM is not financially healthy and even has some risk of bankruptcy.
AFRM's Altman-Z score of 1.45 is fine compared to the rest of the industry. AFRM outperforms 68.63% of its industry peers.
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 has a Debt to FCF ratio (18.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.44 is on the high side and indicates that AFRM has dependencies on debt financing.
AFRM has a worse Debt to Equity ratio (2.44) than 70.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.44
Debt/FCF 18.22
Altman-Z 1.45
ROIC/WACCN/A
WACC8.05%
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 4.23 indicates that AFRM has no problem at all paying its short term obligations.
AFRM has a Current ratio of 4.23. This is amongst the best in the industry. AFRM outperforms 88.24% 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 has a Quick ratio of 4.23. This is amongst the best in the industry. AFRM outperforms 88.24% of its industry peers.
Industry RankSector Rank
Current Ratio 4.23
Quick Ratio 4.23
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 53.44% over the past year.
AFRM shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.96%.
AFRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 51.68% yearly.
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%40.67%

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 37.36% on average per year.
Based on estimates for the next years, AFRM will show a very strong growth in Revenue. The Revenue will grow by 24.21% on average per year.
EPS Next Y68.12%
EPS Next 2Y51.52%
EPS Next 3Y37.36%
EPS Next 5YN/A
Revenue Next Year37.88%
Revenue Next 2Y30.15%
Revenue Next 3Y27.77%
Revenue Next 5Y24.21%

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.
AFRM Yearly Revenue VS EstimatesAFRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
AFRM Yearly EPS VS EstimatesAFRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 -1 -2 -3

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AFRM. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 125.18 indicates a quite expensive valuation of AFRM.
Based on the Price/Forward Earnings ratio, AFRM is valued more expensive than 80.39% of the companies in the same industry.
AFRM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 93.88.
Industry RankSector Rank
PE N/A
Fwd PE 125.18
AFRM Price Earnings VS Forward Price EarningsAFRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 100

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as AFRM.
Industry RankSector Rank
P/FCF 51.34
EV/EBITDA N/A
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 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 37.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.52%
EPS Next 3Y37.36%

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0

5. Dividend

5.1 Amount

AFRM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AFFIRM HOLDINGS INC

NASDAQ:AFRM (1/31/2025, 12:41:04 PM)

62.1917

+0.09 (+0.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-06 2025-02-06/amc
Inst Owners80.12%
Inst Owner Change0.08%
Ins Owners1.04%
Ins Owner Change-0.56%
Market Cap19.53B
Analysts76.8
Price Target60.07 (-3.41%)
Short Float %5.78%
Short Ratio1.64
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)42.2%
Min EPS beat(2)11.21%
Max EPS beat(2)73.18%
EPS beat(4)4
Avg EPS beat(4)37.2%
Min EPS beat(4)11.21%
Max EPS beat(4)73.18%
EPS beat(8)7
Avg EPS beat(8)25.8%
EPS beat(12)8
Avg EPS beat(12)16.76%
EPS beat(16)9
Avg EPS beat(16)-21.22%
Revenue beat(2)2
Avg Revenue beat(2)5.09%
Min Revenue beat(2)3.13%
Max Revenue beat(2)7.06%
Revenue beat(4)4
Avg Revenue beat(4)5.91%
Min Revenue beat(4)2.22%
Max Revenue beat(4)11.25%
Revenue beat(8)7
Avg Revenue beat(8)2.74%
Revenue beat(12)7
Avg Revenue beat(12)-2.9%
Revenue beat(16)8
Avg Revenue beat(16)-2.6%
PT rev (1m)5.37%
PT rev (3m)28.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)44.04%
EPS NY rev (1m)0%
EPS NY rev (3m)33.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.57%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)3%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 125.18
P/S 8.5
P/FCF 51.34
P/OCF 35.64
P/B 6.89
P/tB 8.55
EV/EBITDA N/A
EPS(TTM)-1.42
EYN/A
EPS(NY)0.5
Fwd EY0.8%
FCF(TTM)1.21
FCFY1.95%
OCF(TTM)1.75
OCFY2.81%
SpS7.32
BVpS9.03
TBVpS7.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.4%
ROE -15.74%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 16.55%
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-Score5
Asset Turnover0.23
Health
Industry RankSector Rank
Debt/Equity 2.44
Debt/FCF 18.22
Debt/EBITDA N/A
Cap/Depr 95.44%
Cap/Sales 7.29%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.23
Quick Ratio 4.23
Altman-Z 1.45
F-Score5
WACC8.05%
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)53.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.61%
EPS Next Y68.12%
EPS Next 2Y51.52%
EPS Next 3Y37.36%
EPS Next 5YN/A
Revenue 1Y (TTM)46.96%
Revenue growth 3Y39.65%
Revenue growth 5Y51.68%
Sales Q2Q%40.67%
Revenue Next Year37.88%
Revenue Next 2Y30.15%
Revenue Next 3Y27.77%
Revenue Next 5Y24.21%
EBIT growth 1Y78.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year218.36%
EBIT Next 3Y61.06%
EBIT Next 5YN/A
FCF growth 1Y163.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y215.1%
OCF growth 3YN/A
OCF growth 5YN/A