LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
NYSE:LFT - New York Stock Exchange, Inc. - US55025L1089 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to LFT. LFT was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. LFT has a medium profitability rating, but doesn't score so well on its financial health evaluation. LFT has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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.
LFT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.44%, LFT is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
With a decent Return On Equity value of 7.46%, LFT is doing good in the industry, outperforming 70.31% of the companies in the same industry.
The Return On Invested Capital of LFT (1.45%) is better than 84.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LFT is in line with the industry average of 1.57%.
The 3 year average ROIC (0.89%) for LFT is below the current ROIC(1.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 7.46% | ||
| ROIC | 1.45% |
ROA(3y)0.73%
ROA(5y)0.79%
ROE(3y)4.23%
ROE(5y)4.51%
ROIC(3y)0.89%
ROIC(5y)0.91%
1.3 Margins
LFT's Profit Margin of 14.14% is in line compared to the rest of the industry. LFT outperforms 53.13% of its industry peers.
LFT's Profit Margin has declined in the last couple of years.
LFT has a Operating Margin of 17.80%. This is in the better half of the industry: LFT outperforms 60.94% of its industry peers.
LFT's Operating Margin has declined in the last couple of years.
The Gross Margin of LFT (26.91%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of LFT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 14.14% | ||
| GM | 26.91% |
OM growth 3Y-12.79%
OM growth 5YN/A
PM growth 3Y-18.14%
PM growth 5YN/A
GM growth 3Y-20.49%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for LFT remains at a similar level compared to 1 year ago.
The number of shares outstanding for LFT has been increased compared to 5 years ago.
The debt/assets ratio for LFT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.77, we must say that LFT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.77, LFT is doing worse than 78.13% of the companies in the same industry.
LFT has a debt to FCF ratio of 33.38. This is a negative value and a sign of low solvency as LFT would need 33.38 years to pay back of all of its debts.
LFT has a Debt to FCF ratio of 33.38. This is in the better half of the industry: LFT outperforms 73.44% of its industry peers.
LFT has a Debt/Equity ratio of 4.12. This is a high value indicating a heavy dependency on external financing.
LFT has a Debt to Equity ratio of 4.12. This is comparable to the rest of the industry: LFT outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.12 | ||
| Debt/FCF | 33.38 | ||
| Altman-Z | -0.77 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.05 indicates that LFT may have some problems paying its short term obligations.
With a Current ratio value of 0.05, LFT is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
A Quick Ratio of 0.05 indicates that LFT may have some problems paying its short term obligations.
With a Quick ratio value of 0.05, LFT is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 109.52% over the past year.
LFT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.21% yearly.
Looking at the last year, LFT shows a very strong growth in Revenue. The Revenue has grown by 33.58%.
The Revenue has been growing by 33.66% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)109.52%
EPS 3Y-13.78%
EPS 5Y-4.21%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)33.58%
Revenue growth 3Y48.12%
Revenue growth 5Y33.66%
Sales Q2Q%-6.86%
3.2 Future
Based on estimates for the next years, LFT will show a very strong growth in Earnings Per Share. The EPS will grow by 27.25% on average per year.
The Revenue is expected to grow by 3.40% on average over the next years.
EPS Next Y75.34%
EPS Next 2Y26.48%
EPS Next 3Y27.25%
EPS Next 5YN/A
Revenue Next Year12.96%
Revenue Next 2Y-0.78%
Revenue Next 3Y3.4%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.16, which indicates a rather cheap valuation of LFT.
92.19% of the companies in the same industry are more expensive than LFT, based on the Price/Earnings ratio.
LFT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
Based on the Price/Forward Earnings ratio of 6.78, the valuation of LFT can be described as very cheap.
LFT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LFT is cheaper than 85.94% of the companies in the same industry.
LFT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.16 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
89.06% of the companies in the same industry are more expensive than LFT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.72 | ||
| EV/EBITDA | N/A |
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.
LFT has a very decent profitability rating, which may justify a higher PE ratio.
LFT's earnings are expected to grow with 27.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y26.48%
EPS Next 3Y27.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.68%, LFT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.91, LFT is paying slightly less dividend.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.68% |
5.2 History
The dividend of LFT decreases each year by -2.10%.
LFT has been paying a dividend for at least 10 years, so it has a reliable track record.
LFT has decreased its dividend recently.
Dividend Growth(5Y)-2.1%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
109.72% of the earnings are spent on dividend by LFT. This is not a sustainable payout ratio.
DP109.72%
EPS Next 2Y26.48%
EPS Next 3Y27.25%
NYSE:LFT (2/24/2025, 12:17:49 PM)
2.71
-0.02 (-0.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.59%
Inst Owner Change-96.7%
Ins Owners2.85%
Ins Owner Change0.11%
Market Cap141.68M
Analysts71.11
Price Target2.89 (6.64%)
Short Float %0.15%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.68% |
Yearly Dividend0.34
Dividend Growth(5Y)-2.1%
DP109.72%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.19%
Min EPS beat(2)-17.49%
Max EPS beat(2)17.87%
EPS beat(4)2
Avg EPS beat(4)5.73%
Min EPS beat(4)-17.49%
Max EPS beat(4)29.14%
EPS beat(8)4
Avg EPS beat(8)-10.15%
EPS beat(12)5
Avg EPS beat(12)-14.94%
EPS beat(16)8
Avg EPS beat(16)-6.22%
Revenue beat(2)1
Avg Revenue beat(2)1.1%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)5.92%
Revenue beat(4)2
Avg Revenue beat(4)0.88%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)5.92%
Revenue beat(8)6
Avg Revenue beat(8)5.25%
Revenue beat(12)9
Avg Revenue beat(12)12.86%
Revenue beat(16)13
Avg Revenue beat(16)24.62%
PT rev (1m)0%
PT rev (3m)3.03%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)8.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.16 | ||
| Fwd PE | 6.78 | ||
| P/S | 1.1 | ||
| P/FCF | 4.72 | ||
| P/OCF | 4.72 | ||
| P/B | 0.58 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.44
EY16.24%
EPS(NY)0.4
Fwd EY14.76%
FCF(TTM)0.57
FCFY21.2%
OCF(TTM)0.57
OCFY21.2%
SpS2.45
BVpS4.65
TBVpS4.65
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 7.46% | ||
| ROCE | 7.84% | ||
| ROIC | 1.45% | ||
| ROICexc | 1.5% | ||
| ROICexgc | 1.51% | ||
| OM | 17.8% | ||
| PM (TTM) | 14.14% | ||
| GM | 26.91% | ||
| FCFM | 23.42% |
ROA(3y)0.73%
ROA(5y)0.79%
ROE(3y)4.23%
ROE(5y)4.51%
ROIC(3y)0.89%
ROIC(5y)0.91%
ROICexc(3y)0.92%
ROICexc(5y)0.93%
ROICexgc(3y)0.92%
ROICexgc(5y)0.94%
ROCE(3y)5.23%
ROCE(5y)5.12%
ROICexcg growth 3Y-2.01%
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.98%
ROICexc growth 5YN/A
OM growth 3Y-12.79%
OM growth 5YN/A
PM growth 3Y-18.14%
PM growth 5YN/A
GM growth 3Y-20.49%
GM growth 5YN/A
F-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.12 | ||
| Debt/FCF | 33.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 165.6% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.77 |
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)223.93%
Profit Quality(5y)217.38%
High Growth Momentum
Growth
EPS 1Y (TTM)109.52%
EPS 3Y-13.78%
EPS 5Y-4.21%
EPS Q2Q%-9.09%
EPS Next Y75.34%
EPS Next 2Y26.48%
EPS Next 3Y27.25%
EPS Next 5YN/A
Revenue 1Y (TTM)33.58%
Revenue growth 3Y48.12%
Revenue growth 5Y33.66%
Sales Q2Q%-6.86%
Revenue Next Year12.96%
Revenue Next 2Y-0.78%
Revenue Next 3Y3.4%
Revenue Next 5YN/A
EBIT growth 1Y37.96%
EBIT growth 3Y29.18%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y119.83%
FCF growth 3Y26.5%
FCF growth 5Y15.09%
OCF growth 1Y119.83%
OCF growth 3Y26.5%
OCF growth 5Y15.09%