LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.35 USD
-0.02 (-1.46%)
1.34 USD
-0.01 (-0.74%)
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. LFT has a medium profitability rating, but doesn't score so well on its financial health evaluation. LFT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year LFT was profitable.
- In the past year LFT had a positive cash flow from operations.
- 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
- With a Return On Assets value of 0.53%, LFT perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 2.20%, LFT is in line with its industry, outperforming 45.59% of the companies in the same industry.
- With a decent Return On Invested Capital value of 0.81%, LFT is doing good in the industry, outperforming 70.59% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- LFT has a Profit Margin (5.78%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of LFT has grown nicely.
- The Operating Margin of LFT (11.12%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of LFT has grown nicely.
- LFT has a Gross Margin (27.94%) which is in line with its industry peers.
- 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.
- The number of shares outstanding for LFT has been increased compared to 5 years ago.
- The debt/assets ratio for LFT has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -0.78, we must say that LFT is in the distress zone and has some risk of bankruptcy.
- LFT has a Altman-Z score of -0.78. This is in the lower half of the industry: LFT underperforms 76.47% of its industry peers.
- 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.
- LFT has a Debt to FCF ratio of 47.27. This is in the better half of the industry: LFT outperforms 79.41% of its industry peers.
- LFT has a Debt/Equity ratio of 3.12. This is a high value indicating a heavy dependency on external financing.
- With a decent Debt to Equity ratio value of 3.12, LFT is doing good in the industry, outperforming 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 47.27 | ||
| Altman-Z | -0.78 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.11 indicates that LFT may have some problems paying 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.
- LFT's Quick ratio of 0.11 is on the low side compared to the rest of the industry. LFT is outperformed by 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
- The earnings per share for LFT have decreased strongly by -43.18% in the last year.
- LFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
- The Revenue for LFT has decreased by -31.72% in the past year. This is quite bad
- 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
- LFT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -22.01% yearly.
- The Revenue is expected to decrease by -23.56% on average over the next years. This is quite bad
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 5.40, which indicates a rather cheap valuation of LFT.
- Based on the Price/Earnings ratio, LFT is valued cheaper than 95.59% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. LFT is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 5.04, which indicates a rather cheap valuation of LFT.
- LFT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LFT is cheaper than 94.12% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LFT to the average of the S&P500 Index (25.98), we can say LFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.4 | ||
| Fwd PE | 5.04 |
4.2 Price Multiples
- LFT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LFT is cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A cheap valuation may be justified as LFT's earnings are expected to decrease with -22.01% in the coming years.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-22.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- LFT has a Yearly Dividend Yield of 9.60%, which is a nice return.
- LFT's Dividend Yield is slightly below the industry average, which is at 11.26.
- LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.6% |
5.2 History
- The dividend of LFT has a limited annual growth rate of 5.24%.
- LFT has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of LFT decreased 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
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.
What is the valuation status for LFT stock?
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 are the PE and PB ratios of LUMENT FINANCE TRUST INC (LFT) stock?
The Price/Earnings (PE) ratio for LUMENT FINANCE TRUST INC (LFT) is 5.4 and the Price/Book (PB) ratio is 0.31.
Can you provide the dividend sustainability for LFT stock?
The dividend rating of LUMENT FINANCE TRUST INC (LFT) is 4 / 10 and the dividend payout ratio is 496.72%.