LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.52 USD
-0.11 (-6.75%)
1.52 USD
0 (0%)
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 on the other hand it scores bad on growth.
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
LFT has a Return On Assets (0.53%) which is in line with its industry peers.
LFT has a Return On Equity of 2.20%. This is comparable to the rest of the industry: LFT outperforms 44.93% of its industry peers.
With a decent Return On Invested Capital value of 0.81%, LFT is doing good in the industry, outperforming 69.57% 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
Looking at the Profit Margin, with a value of 5.78%, LFT is in line with its industry, outperforming 44.93% of the companies in the same industry.
LFT's Profit Margin has improved in the last couple of years.
LFT has a Operating Margin of 11.12%. This is comparable to the rest of the industry: LFT outperforms 53.62% of its industry peers.
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
The number of shares outstanding for LFT remains at a similar level compared to 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: 76.81% 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.
With a decent Debt to FCF ratio value of 47.27, LFT is doing good in the industry, outperforming 78.26% 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's Debt to Equity ratio of 3.12 is fine compared to the rest of the industry. LFT outperforms 72.46% 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.
Looking at the Current ratio, with a value of 0.11, LFT is doing worse than 63.77% of the companies in the same industry.
A Quick Ratio of 0.11 indicates that LFT may have some problems paying its short term obligations.
With a Quick ratio value of 0.11, LFT is not doing good in the industry: 63.77% of the companies in the same industry are doing better.
| 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.
LFT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.72%.
The Revenue has been growing by 26.10% on average over the past years. This is a very strong growth!
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.
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
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
LFT is valuated cheaply with a Price/Earnings ratio of 6.08.
Based on the Price/Earnings ratio, LFT is valued cheaper than 91.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.56. LFT is valued rather cheaply when compared to this.
LFT is valuated cheaply with a Price/Forward Earnings ratio of 5.68.
Based on the Price/Forward Earnings ratio, LFT is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LFT to the average of the S&P500 Index (23.79), we can say LFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
LFT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LFT is cheaper than 92.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.24 | ||
| 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)0.92
EPS Next 2Y-22.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 9.82%, which is a nice return.
The stock price of LFT dropped by -34.48% 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 12.28, 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 | 9.82% |
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.
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
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
1.52
-0.11 (-6.75%)
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 Cap79.59M
Revenue(TTM)87.56M
Net Income(TTM)5.06M
Analysts46.67
Price Target2.68 (76.32%)
Short Float %1.38%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.82% |
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)-25%
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 | 6.08 | ||
| Fwd PE | 5.68 | ||
| P/S | 0.91 | ||
| P/FCF | 5.24 | ||
| P/OCF | 5.24 | ||
| P/B | 0.35 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.25
EY16.45%
EPS(NY)0.27
Fwd EY17.61%
FCF(TTM)0.29
FCFY19.07%
OCF(TTM)0.29
OCFY19.07%
SpS1.67
BVpS4.39
TBVpS4.39
PEG (NY)N/A
PEG (5Y)0.92
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%.