AFFIRM HOLDINGS INC (AFRM)
US00827B1061 - Common Stock
Taking everything into account, AFRM scores 3 out of 10 in our fundamental rating. AFRM was compared to 99 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.
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.
In multiple years AFRM reported negative operating cash flow during the last 5 years.
1.2 Ratios
AFRM has a Return On Assets of -4.40%. This is amonst the worse of the industry: AFRM underperforms 87.88% of its industry peers.
AFRM's Return On Equity of -15.74% is on the low side compared to the rest of the industry. AFRM is outperformed by 85.86% of its industry peers.
| 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
Compared to 5 years ago, AFRM has more shares outstanding
The debt/assets ratio for AFRM is higher compared to a year ago.
2.2 Solvency
AFRM has an Altman-Z score of 1.52. 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 1.52 is fine compared to the rest of the industry. AFRM outperforms 68.69% of its industry peers.
AFRM has a debt to FCF ratio of 18.22. This is a negative value and a sign of low solvency as AFRM would need 18.22 years to pay back of 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 46.46% 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 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 18.22 | ||
| Altman-Z | 1.52 |
ROIC/WACCN/A
WACC8.08%
2.3 Liquidity
A Current Ratio of 4.23 indicates that AFRM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.23, AFRM belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
A Quick Ratio of 4.23 indicates that AFRM has no problem at all paying its short term obligations.
The Quick ratio of AFRM (4.23) is better than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 |
3. Growth
3.1 Past
AFRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.44%, which is quite impressive.
AFRM shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.96%.
Measured over the past years, AFRM shows a very strong growth in Revenue. The Revenue has been growing by 51.68% on average per year.
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
The Earnings Per Share is expected to grow by 37.36% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 24.21% on average over the next years. This is a very strong growth
EPS Next Y68.12%
EPS Next 2Y51.52%
EPS Next 3Y37.36%
EPS Next 5YN/A
Revenue Next Year37.75%
Revenue Next 2Y30.14%
Revenue Next 3Y27.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
AFRM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
AFRM is valuated quite expensively with a Price/Forward Earnings ratio of 132.64.
81.82% of the companies in the same industry are cheaper than AFRM, based on the Price/Forward Earnings ratio.
AFRM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 132.64 |
4.2 Price Multiples
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.4 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AFRM does not grow enough to justify the current Price/Earnings ratio.
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%
5. Dividend
5.1 Amount
AFRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AFFIRM HOLDINGS INC
NASDAQ:AFRM (12/24/2024, 7:54:21 PM)
After market: 65.9776 +0.08 (+0.12%)65.9
+0.95 (+1.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.12%
Inst Owner Change2.73%
Ins Owners1.04%
Ins Owner Change-0.43%
Market Cap20.70B
Analysts74.4
Price Target57.01 (-13.49%)
Short Float %6.46%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)22.2%
PT rev (3m)57.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)44.04%
EPS NY rev (1m)14.61%
EPS NY rev (3m)33.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.57%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)3.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 132.64 | ||
| P/S | 9 | ||
| P/FCF | 54.4 | ||
| P/OCF | 37.76 | ||
| P/B | 7.3 | ||
| P/tB | 9.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.42
EYN/A
EPS(NY)0.5
Fwd EY0.75%
FCF(TTM)1.21
FCFY1.84%
OCF(TTM)1.75
OCFY2.65%
SpS7.32
BVpS9.03
TBVpS7.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.52 |
F-Score5
WACC8.08%
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 Year37.75%
Revenue Next 2Y30.14%
Revenue Next 3Y27.74%
Revenue Next 5Y24.21%
EBIT growth 1Y78.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year212.92%
EBIT Next 3Y41.03%
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