LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.52 USD
+0.09 (+6.29%)
1.5 USD
-0.02 (-1.32%)
Overall LFT gets a fundamental rating of 5 out of 10. We evaluated LFT against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While LFT has a great profitability rating, there are quite some concerns on its financial health. LFT is cheap, 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.
LFT had positive earnings in each of the past 5 years.
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 0.95%, LFT belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
LFT's Return On Equity of 4.11% is in line compared to the rest of the industry. LFT outperforms 48.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.13%, LFT belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
LFT had an Average Return On Invested Capital over the past 3 years of 1.11%. This is in line with the industry average of 1.23%.
The last Return On Invested Capital (1.13%) for LFT is above the 3 year average (1.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.11% | ||
| ROIC | 1.13% |
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 of 9.60%. This is comparable to the rest of the industry: LFT outperforms 58.82% of its industry peers.
LFT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.34%, 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's Gross Margin of 29.18% is in line compared to the rest of the industry. LFT outperforms 52.94% of its industry peers.
In the last couple of years the Gross Margin of LFT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.34% | ||
| PM (TTM) | 9.6% | ||
| GM | 29.18% |
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
LFT has a better debt/assets ratio than last year.
2.2 Solvency
LFT has an Altman-Z score of -0.77. 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 -0.77 is on the low side compared to the rest of the industry. LFT is outperformed by 76.47% of its industry peers.
LFT has a debt to FCF ratio of 37.38. This is a negative value and a sign of low solvency as LFT would need 37.38 years to pay back of all of its debts.
LFT has a better Debt to FCF ratio (37.38) than 79.41% of its industry peers.
LFT has a Debt/Equity ratio of 3.27. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 3.27, LFT is doing good in the industry, outperforming 72.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 37.38 | ||
| Altman-Z | -0.77 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.09 indicates that LFT may have some problems paying its short term obligations.
LFT has a Current ratio of 0.09. This is in the lower half of the industry: LFT underperforms 64.71% of its industry peers.
A Quick Ratio of 0.09 indicates that LFT may have some problems paying its short term obligations.
The Quick ratio of LFT (0.09) is worse than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
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.
The Revenue has grown by 11.85% in the past year. This is quite good.
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)11.85%
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 -14.97% yearly.
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-31.14%
EPS Next 2Y-14.97%
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.
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
With a Price/Earnings ratio of 6.08, the valuation of LFT can be described as very cheap.
LFT's Price/Earnings ratio is rather cheap when compared to the industry. LFT is cheaper than 92.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of LFT to the average of the S&P500 Index (25.45), we can say LFT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.78, the valuation of LFT can be described as very cheap.
Based on the Price/Forward Earnings ratio, LFT is valued cheaply inside the industry as 95.59% of the companies are valued more expensively.
LFT is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 4.78 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LFT is valued cheaper than 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.93 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LFT has a very decent profitability rating, which may justify a higher PE ratio.
LFT's earnings are expected to decrease with -14.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y-14.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.19%, LFT is a good candidate for dividend investing.
The stock price of LFT dropped by -31.84% 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 12.59, LFT is paying slightly less dividend.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.19% |
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
LFT pays out 275.65% 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.
DP275.65%
EPS Next 2Y-14.97%
EPS Next 3YN/A
1.52
+0.09 (+6.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change0.49%
Ins Owners2.99%
Ins Owner Change0.32%
Market Cap79.56M
Revenue(TTM)122.13M
Net Income(TTM)9.50M
Analysts76.67
Price Target2.68 (76.32%)
Short Float %1.27%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.19% |
Yearly Dividend0.39
Dividend Growth(5Y)5.24%
DP275.65%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.99%
Min EPS beat(2)-33.99%
Max EPS beat(2)-11.99%
EPS beat(4)2
Avg EPS beat(4)-5.12%
Min EPS beat(4)-33.99%
Max EPS beat(4)17.87%
EPS beat(8)4
Avg EPS beat(8)1.4%
EPS beat(12)5
Avg EPS beat(12)-13.8%
EPS beat(16)6
Avg EPS beat(16)-13.96%
Revenue beat(2)0
Avg Revenue beat(2)-9.49%
Min Revenue beat(2)-12.75%
Max Revenue beat(2)-6.23%
Revenue beat(4)1
Avg Revenue beat(4)-4.76%
Min Revenue beat(4)-12.75%
Max Revenue beat(4)5.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.15%
Revenue beat(12)7
Avg Revenue beat(12)1.86%
Revenue beat(16)10
Avg Revenue beat(16)12.38%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 4.78 | ||
| P/S | 0.8 | ||
| P/FCF | 3.93 | ||
| P/OCF | 3.93 | ||
| P/B | 0.34 | ||
| P/tB | 0.34 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.25
EY16.45%
EPS(NY)0.32
Fwd EY20.93%
FCF(TTM)0.39
FCFY25.47%
OCF(TTM)0.39
OCFY25.47%
SpS1.89
BVpS4.42
TBVpS4.42
PEG (NY)N/A
PEG (5Y)0.92
Graham Number4.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.11% | ||
| ROCE | 5.06% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.2% | ||
| ROICexgc | 1.21% | ||
| OM | 14.34% | ||
| PM (TTM) | 9.6% | ||
| GM | 29.18% | ||
| FCFM | 20.48% |
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-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 37.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.22 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 213.33% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | -0.77 |
F-Score4
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-31.14%
EPS Next 2Y-14.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.85%
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-37.96%
EBIT growth 3Y22.43%
EBIT growth 5Y30.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.08%
FCF growth 3Y25.12%
FCF growth 5Y30.1%
OCF growth 1Y12.08%
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 5 / 10 to LFT.
Can you provide the valuation status for LUMENT FINANCE TRUST INC?
ChartMill assigns a valuation rating of 7 / 10 to LUMENT FINANCE TRUST INC (LFT). This can be considered as Undervalued.
How profitable is LUMENT FINANCE TRUST INC (LFT) stock?
LUMENT FINANCE TRUST INC (LFT) has a profitability rating of 7 / 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 -31.14% in the next year.
Is the dividend of LUMENT FINANCE TRUST INC sustainable?
The dividend rating of LUMENT FINANCE TRUST INC (LFT) is 5 / 10 and the dividend payout ratio is 275.65%.