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%)
We assign a fundamental rating of 4 out of 10 to LFT. LFT was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. LFT has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- 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 0.53%, LFT is in line with its industry, outperforming 57.35% of the companies in the same industry.
- LFT has a Return On Equity (2.20%) which is comparable to the rest of the industry.
- LFT has a better Return On Invested Capital (0.81%) than 70.59% 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 1.28%.
| 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
- With a Profit Margin value of 5.78%, LFT perfoms like the industry average, outperforming 45.59% of the companies in the same industry.
- In the last couple of years the Profit Margin of LFT has grown nicely.
- Looking at the Operating Margin, with a value of 11.12%, LFT is in line with its industry, outperforming 54.41% of the companies in the same industry.
- In the last couple of years the Operating Margin of LFT has grown nicely.
- The Gross Margin of LFT (27.94%) 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.
- 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.
- LFT has a worse Altman-Z score (-0.78) 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.
- The Debt to FCF ratio of LFT (47.27) is better than 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.
- LFT's Debt to Equity ratio of 3.12 is fine compared to the rest of the industry. LFT outperforms 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.
- Looking at the Current ratio, with a value of 0.11, LFT is doing worse than 63.24% 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.
- 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
- 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.
- The Revenue for LFT has decreased by -31.72% in the past year. This is quite bad
- LFT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.10% yearly.
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
- Based on estimates for the next years, LFT will show a very negative growth in Earnings Per Share. The EPS will decrease by -22.01% on average per year.
- 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
- The Price/Earnings ratio is 5.48, which indicates a rather cheap valuation of LFT.
- Based on the Price/Earnings ratio, LFT is valued cheaper than 95.59% of the companies in the same industry.
- LFT is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 5.12, 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 94.12% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, LFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 5.12 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 94.12% of the companies listed 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.
- LFT's Dividend Yield is comparable with the industry average which is at 11.30.
- LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 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
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%.