LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.36 USD
+0.01 (+0.74%)
1.3699 USD
+0.01 (+0.73%)
LFT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
- In the past year LFT had a positive cash flow from operations.
- Each year in the past 5 years LFT has been profitable.
- Each year in the past 5 years LFT had a positive operating cash flow.
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.
- Looking at the Return On Invested Capital, with a value of 0.81%, LFT is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- 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
- LFT's Profit Margin of 5.78% is in line compared to the rest of the industry. LFT outperforms 45.59% of its industry peers.
- In the last couple of years the Profit Margin of LFT has grown nicely.
- Looking at the Operating Margin, with a value of 11.12%, LFT is in line with its industry, outperforming 54.41% of the companies in the same industry.
- LFT's Operating Margin has improved in the last couple of years.
- LFT has a Gross Margin (27.94%) which is comparable to the rest of the 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
- Compared to 1 year ago, LFT has about the same amount of shares outstanding.
- LFT has more shares outstanding than it did 5 years ago.
- LFT has a better debt/assets ratio than last year.
2.2 Solvency
- LFT has an Altman-Z score of -0.79. This is a bad value and indicates that LFT is not financially healthy and even has some risk of bankruptcy.
- LFT's Altman-Z score of -0.79 is on the low side compared to the rest of the industry. LFT is outperformed by 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's Debt to FCF ratio of 47.27 is fine compared to the rest 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 | -0.79 |
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.
- Looking at the Current ratio, with a value of 0.11, LFT is doing worse than 63.24% of the companies in the same industry.
- LFT has a Quick 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.
- 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
- The earnings per share for LFT have decreased strongly by -43.18% in the last year.
- 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
- Based on estimates for the next years, LFT will show a very negative growth in Earnings Per Share. The EPS will decrease by -22.01% on average per year.
- Based on estimates for the next years, LFT will show a very negative growth in Revenue. The Revenue will decrease by -23.56% on average per year.
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.
- 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 5.44, which indicates a rather cheap valuation of LFT.
- 97.06% 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 28.87.
- The Price/Forward Earnings ratio is 5.08, 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 95.59% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. LFT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 5.08 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, LFT is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| 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)0.83
EPS Next 2Y-22.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.60%, LFT is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.64, LFT is paying slightly less dividend.
- 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.
- 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
- 496.72% of the earnings are spent on dividend by LFT. This is not a sustainable payout ratio.
- LFT's earnings are declining while the Dividend Rate has been growing. 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 5.44 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%.