LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.47 USD
-0.03 (-2%)
1.4559 USD
-0.01 (-0.96%)
Taking everything into account, LFT scores 4 out of 10 in our fundamental rating. LFT was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of LFT while its profitability can be described as average. LFT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LFT was profitable.
LFT had a positive operating cash flow in the past year.
In the past 5 years LFT has always been profitable.
In the past 5 years LFT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.53%, LFT is in line with its industry, outperforming 57.35% of the companies in the same industry.
LFT has a Return On Equity of 2.20%. This is comparable to the rest of the industry: LFT outperforms 45.59% of its industry peers.
LFT has a Return On Invested Capital of 0.81%. This is in the better half of the industry: LFT outperforms 70.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LFT is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 2.2% | ||
| ROIC | 0.81% |
ROA(3y)1.02%
ROA(5y)1.03%
ROE(3y)5.28%
ROE(5y)5.52%
ROIC(3y)1.11%
ROIC(5y)1.09%
1.3 Margins
The Profit Margin of LFT (5.78%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LFT has grown nicely.
LFT has a Operating Margin (11.12%) which is in line with its industry peers.
LFT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.94%, LFT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
LFT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.12% | ||
| PM (TTM) | 5.78% | ||
| GM | 27.94% |
OM growth 3Y-18.37%
OM growth 5Y3.71%
PM growth 3Y-10.48%
PM growth 5Y15.78%
GM growth 3Y-20.78%
GM growth 5Y-5.82%
2. Health
2.1 Basic Checks
LFT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LFT has more shares outstanding
Compared to 1 year ago, LFT has an improved debt to assets ratio.
2.2 Solvency
LFT has an Altman-Z score of -0.78. This is a bad value and indicates that LFT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.78, LFT is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
The Debt to FCF ratio of LFT is 47.27, which is on the high side as it means it would take LFT, 47.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 47.27, LFT is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
LFT has a Debt/Equity ratio of 3.12. This is a high value indicating a heavy dependency on external financing.
LFT has a Debt to Equity ratio of 3.12. This is in the better half of the industry: LFT outperforms 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 47.27 | ||
| Altman-Z | -0.78 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
LFT has a Current Ratio of 0.11. This is a bad value and indicates that LFT is not financially healthy enough and could expect problems in meeting its short term obligations.
LFT has a Current ratio of 0.11. This is in the lower half of the industry: LFT underperforms 63.24% of its industry peers.
A Quick Ratio of 0.11 indicates that LFT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.11, LFT is doing worse than 63.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
LFT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.18%.
The Earnings Per Share has been growing slightly by 6.58% on average over the past years.
LFT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.72%.
Measured over the past years, LFT shows a very strong growth in Revenue. The Revenue has been growing by 26.10% on average per year.
EPS 1Y (TTM)-43.18%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-80%
Revenue 1Y (TTM)-31.72%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-38.36%
3.2 Future
The Earnings Per Share is expected to decrease by -22.01% on average over the next years. This is quite bad
LFT is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -23.56% yearly.
EPS Next Y-40.32%
EPS Next 2Y-22.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-34.75%
Revenue Next 2Y-23.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.88, the valuation of LFT can be described as very cheap.
92.65% of the companies in the same industry are more expensive than LFT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.39. LFT is valued rather cheaply when compared to this.
LFT is valuated cheaply with a Price/Forward Earnings ratio of 5.49.
Based on the Price/Forward Earnings ratio, LFT is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.84. LFT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 5.49 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LFT is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LFT's earnings are expected to decrease with -22.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-22.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 10.67%, which is a nice return.
The stock price of LFT dropped by -33.18% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 12.23, LFT is paying slightly less dividend.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.67% |
5.2 History
The dividend of LFT has a limited annual growth rate of 5.24%.
LFT has paid a dividend for at least 10 years, which is a reliable track record.
LFT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LFT pays out 496.72% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of LFT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP496.72%
EPS Next 2Y-22.01%
EPS Next 3YN/A
1.47
-0.03 (-2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners50.98%
Inst Owner Change0.49%
Ins Owners3.21%
Ins Owner Change0.86%
Market Cap76.97M
Revenue(TTM)87.56M
Net Income(TTM)5.06M
Analysts46.67
Price Target2.68 (82.31%)
Short Float %1.75%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.67% |
Yearly Dividend0.39
Dividend Growth(5Y)5.24%
DP496.72%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-53.8%
Min EPS beat(2)-73.6%
Max EPS beat(2)-33.99%
EPS beat(4)1
Avg EPS beat(4)-27.99%
Min EPS beat(4)-73.6%
Max EPS beat(4)7.62%
EPS beat(8)3
Avg EPS beat(8)-11.13%
EPS beat(12)5
Avg EPS beat(12)-16.1%
EPS beat(16)6
Avg EPS beat(16)-18.2%
Revenue beat(2)0
Avg Revenue beat(2)-5.97%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-5.71%
Revenue beat(4)0
Avg Revenue beat(4)-7.67%
Min Revenue beat(4)-12.75%
Max Revenue beat(4)-5.71%
Revenue beat(8)2
Avg Revenue beat(8)-3.4%
Revenue beat(12)6
Avg Revenue beat(12)0.94%
Revenue beat(16)9
Avg Revenue beat(16)7.73%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25%
EPS NY rev (1m)-13.33%
EPS NY rev (3m)-13.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 5.49 | ||
| P/S | 0.88 | ||
| P/FCF | 5.07 | ||
| P/OCF | 5.07 | ||
| P/B | 0.33 | ||
| P/tB | 0.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.25
EY17.01%
EPS(NY)0.27
Fwd EY18.21%
FCF(TTM)0.29
FCFY19.72%
OCF(TTM)0.29
OCFY19.72%
SpS1.67
BVpS4.39
TBVpS4.39
PEG (NY)N/A
PEG (5Y)0.89
Graham Number4.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 2.2% | ||
| ROCE | 3.48% | ||
| ROIC | 0.81% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 0.87% | ||
| OM | 11.12% | ||
| PM (TTM) | 5.78% | ||
| GM | 27.94% | ||
| FCFM | 17.33% |
ROA(3y)1.02%
ROA(5y)1.03%
ROE(3y)5.28%
ROE(5y)5.52%
ROIC(3y)1.11%
ROIC(5y)1.09%
ROICexc(3y)1.17%
ROICexc(5y)1.13%
ROICexgc(3y)1.17%
ROICexgc(5y)1.13%
ROCE(3y)5.96%
ROCE(5y)5.9%
ROICexgc growth 3Y21.78%
ROICexgc growth 5Y18.68%
ROICexc growth 3Y21.77%
ROICexc growth 5Y18.69%
OM growth 3Y-18.37%
OM growth 5Y3.71%
PM growth 3Y-10.48%
PM growth 5Y15.78%
GM growth 3Y-20.78%
GM growth 5Y-5.82%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 47.27 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 299.85% | ||
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 | ||
| Altman-Z | -0.78 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)212.03%
Profit Quality(5y)193.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-43.18%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-80%
EPS Next Y-40.32%
EPS Next 2Y-22.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-31.72%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-38.36%
Revenue Next Year-34.75%
Revenue Next 2Y-23.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-57.36%
EBIT growth 3Y22.43%
EBIT growth 5Y30.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.34%
FCF growth 3Y25.12%
FCF growth 5Y30.1%
OCF growth 1Y-24.34%
OCF growth 3Y25.12%
OCF growth 5Y30.1%
LUMENT FINANCE TRUST INC / LFT FAQ
Can you provide the ChartMill fundamental rating for LUMENT FINANCE TRUST INC?
ChartMill assigns a fundamental rating of 4 / 10 to LFT.
Can you provide the valuation status for LUMENT FINANCE TRUST INC?
ChartMill assigns a valuation rating of 6 / 10 to LUMENT FINANCE TRUST INC (LFT). This can be considered as Fairly Valued.
How profitable is LUMENT FINANCE TRUST INC (LFT) stock?
LUMENT FINANCE TRUST INC (LFT) has a profitability rating of 5 / 10.
What is the earnings growth outlook for LUMENT FINANCE TRUST INC?
The Earnings per Share (EPS) of LUMENT FINANCE TRUST INC (LFT) is expected to decline by -40.32% in the next year.
Is the dividend of LUMENT FINANCE TRUST INC sustainable?
The dividend rating of LUMENT FINANCE TRUST INC (LFT) is 4 / 10 and the dividend payout ratio is 496.72%.