LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.63 USD
+0.04 (+2.52%)
1.63 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LFT. LFT was compared to 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. LFT scores excellent on profitability, but there are concerns on its financial health. LFT has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
LFT had positive earnings in the past year.
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
LFT has a Return On Assets of 0.95%. This is amongst the best in the industry. LFT outperforms 80.88% of its industry peers.
LFT has a Return On Equity (4.11%) which is in line with its industry peers.
LFT has a better Return On Invested Capital (1.13%) than 83.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LFT is in line with the industry average of 1.22%.
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
With a Profit Margin value of 9.60%, LFT perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
LFT's Profit Margin has improved in the last couple of years.
LFT's Operating Margin of 14.34% is in line compared to the rest of the industry. LFT outperforms 54.41% of its industry peers.
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.
LFT's Gross Margin has declined in the last couple of years.
| 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.
LFT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LFT has an improved debt to assets ratio.
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 has a worse Altman-Z score (-0.77) than 76.47% of its industry peers.
The Debt to FCF ratio of LFT is 37.38, which is on the high side as it means it would take LFT, 37.38 years of fcf income to pay off all of its debts.
LFT has a Debt to FCF ratio of 37.38. This is in the better half of the industry: LFT outperforms 79.41% of its industry peers.
A Debt/Equity ratio of 3.27 is on the high side and indicates that LFT has dependencies on debt financing.
LFT has a better Debt to Equity ratio (3.27) than 72.06% of its industry peers.
| 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's Current ratio of 0.09 is on the low side compared to the rest of the industry. LFT is outperformed by 64.71% of its industry peers.
A Quick Ratio of 0.09 indicates that LFT may have some problems paying its short term obligations.
With a Quick ratio value of 0.09, LFT is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
LFT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.18%.
The Earnings Per Share has been growing slightly by 6.58% on average over the past years.
Looking at the last year, LFT shows a quite strong growth in Revenue. The Revenue has grown by 11.85% in the last year.
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)11.85%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-38.36%
3.2 Future
The Earnings Per Share is expected to decrease by -14.97% on average over the next years. This is quite bad
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-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
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
A Price/Earnings ratio of 6.52 indicates a rather cheap valuation of LFT.
Based on the Price/Earnings ratio, LFT is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. LFT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.12, 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 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 5.12 |
4.2 Price Multiples
LFT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LFT is cheaper than 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of LFT 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)0.99
EPS Next 2Y-14.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 10.06%, which is a nice return.
In the last 3 months the price of LFT has falen by -27.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LFT's Dividend Yield is slightly below the industry average, which is at 13.24.
Compared to an average S&P500 Dividend Yield of 2.34, LFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.06% |
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 275.65% of its income as dividend. 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.
DP275.65%
EPS Next 2Y-14.97%
EPS Next 3YN/A
1.63
+0.04 (+2.52%)
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 Cap85.35M
Revenue(TTM)122.13M
Net Income(TTM)9.50M
Analysts76.67
Price Target2.68 (64.42%)
Short Float %1.27%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.06% |
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 | 6.52 | ||
| Fwd PE | 5.12 | ||
| P/S | 0.86 | ||
| P/FCF | 4.21 | ||
| P/OCF | 4.21 | ||
| P/B | 0.37 | ||
| P/tB | 0.37 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.25
EY15.34%
EPS(NY)0.32
Fwd EY19.52%
FCF(TTM)0.39
FCFY23.74%
OCF(TTM)0.39
OCFY23.74%
SpS1.89
BVpS4.42
TBVpS4.42
PEG (NY)N/A
PEG (5Y)0.99
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 4 / 10 and the dividend payout ratio is 275.65%.