LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.37 USD
-0.04 (-2.84%)
1.37 USD
0 (0%)
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 is valued correctly, 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
- With a Return On Assets value of 0.53%, LFT perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
- 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.
- LFT's Return On Invested Capital of 0.81% is fine compared to the rest of the industry. LFT outperforms 70.59% of its industry peers.
- 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.
- With a Operating Margin value of 11.12%, LFT perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
- LFT's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 27.94%, LFT perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
- 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.
- LFT has a Altman-Z score of -0.78. This is in the lower half of the industry: LFT underperforms 76.47% of its industry peers.
- LFT has a debt to FCF ratio of 47.27. This is a negative value and a sign of low solvency as LFT would need 47.27 years to pay back of all of its debts.
- LFT has a Debt to FCF ratio of 47.27. This is in the better half of the industry: LFT outperforms 79.41% of its industry peers.
- A Debt/Equity ratio of 3.12 is on the high side and indicates that LFT has dependencies on debt financing.
- The Debt to Equity ratio of LFT (3.12) is better 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
- 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.
- LFT's Current 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.
- A Quick Ratio of 0.11 indicates that LFT may have some problems paying its short term obligations.
- LFT has a Quick ratio of 0.11. This is in the lower half of the industry: LFT underperforms 63.24% of its industry peers.
| 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.
- Looking at the last year, LFT shows a very negative growth in Revenue. The Revenue has decreased by -31.72% in the last year.
- 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
- The Earnings Per Share is expected to decrease by -22.01% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -23.56% on average over the next years. This is quite bad
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
- With a Price/Earnings ratio of 5.48, 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 95.59% of the companies in the same industry.
- When comparing the Price/Earnings ratio of LFT to the average of the S&P500 Index (27.21), we can say LFT is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.12, the valuation of LFT can be described as very cheap.
- 94.12% of the companies in the same industry are more expensive than LFT, based on the Price/Forward Earnings ratio.
- LFT is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| 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 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.73 | ||
| 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
- LFT has a Yearly Dividend Yield of 9.60%, which is a nice return.
- Compared to an average industry Dividend Yield of 11.26, LFT is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, LFT pays a better dividend.
| 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 paid a dividend for at least 10 years, which is 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.
- 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
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 5.48 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 5 / 10 and the dividend payout ratio is 496.72%.