LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.41 USD
-0.03 (-2.08%)
1.41 USD
0 (0%)
Overall LFT gets a fundamental rating of 4 out of 10. We evaluated LFT 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.
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
LFT's Return On Assets of 0.53% is in line compared to the rest of the industry. LFT outperforms 57.35% of its industry peers.
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.
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.
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 1.28%.
| 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
The Profit Margin of LFT (5.78%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LFT has grown nicely.
LFT has a Operating Margin (11.12%) which is comparable to the rest of the 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.
In the last couple of years the Gross Margin of LFT has declined.
| 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.
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 -0.78. This is a bad value and indicates that LFT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LFT (-0.78) is worse than 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.
Looking at the Debt to FCF ratio, with a value of 47.27, LFT is in the better half of the industry, outperforming 79.41% 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 has a better Debt to Equity ratio (3.12) than 73.53% 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
A Current Ratio of 0.11 indicates that LFT may have some problems paying its short term obligations.
With a Current ratio value of 0.11, LFT is not doing good in the industry: 63.24% of the companies in the same industry are doing better.
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.
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
LFT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.18%.
Measured over the past 5 years, LFT shows a small growth in Earnings Per Share. The EPS has been growing by 6.58% on average per year.
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
The Earnings Per Share is expected to decrease by -22.01% on average over the next years. This is quite bad
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-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.
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
LFT is valuated cheaply with a Price/Earnings ratio of 5.64.
94.12% of the companies in the same industry are more expensive than LFT, based on the Price/Earnings ratio.
LFT is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.27, which indicates a rather cheap valuation of LFT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 92.65% of the companies listed in the same industry.
LFT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 5.27 |
4.2 Price Multiples
LFT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LFT is cheaper than 92.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.86 | ||
| 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)0.86
EPS Next 2Y-22.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 9.35%, which is a nice return.
The stock price of LFT dropped by -26.56% 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 10.99, LFT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, LFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.35% |
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
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
1.41
-0.03 (-2.08%)
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 Change0.93%
Market Cap73.83M
Revenue(TTM)87.56M
Net Income(TTM)5.06M
Analysts46.67
Price Target2.68 (90.07%)
Short Float %2.06%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.35% |
Yearly Dividend0.39
Dividend Growth(5Y)5.24%
DP496.72%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0%
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 | 5.64 | ||
| Fwd PE | 5.27 | ||
| P/S | 0.84 | ||
| P/FCF | 4.86 | ||
| P/OCF | 4.86 | ||
| P/B | 0.32 | ||
| P/tB | 0.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.25
EY17.73%
EPS(NY)0.27
Fwd EY18.98%
FCF(TTM)0.29
FCFY20.56%
OCF(TTM)0.29
OCFY20.56%
SpS1.67
BVpS4.39
TBVpS4.39
PEG (NY)N/A
PEG (5Y)0.86
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.
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 5.64 and the Price/Book (PB) ratio is 0.32.
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%.