LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - NYSE:LFT - US55025L1089 - REIT
2.18 USD
+0.04 (+1.87%)
Taking everything into account, LFT scores 5 out of 10 in our fundamental rating. LFT was compared to 62 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While LFT belongs to the best of the industry regarding profitability, there are concerns on its financial health. LFT has a bad growth rate and is valued cheaply.
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
LFT's Return On Assets of 0.95% is amongst the best of the industry. LFT outperforms 82.26% of its industry peers.
LFT's Return On Equity of 4.11% is fine compared to the rest of the industry. LFT outperforms 67.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.13%, LFT is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LFT is in line with the industry average of 1.39%.
The 3 year average ROIC (1.11%) for LFT is below the current ROIC(1.13%), indicating increased profibility in the last year.
| 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's Profit Margin of 9.60% is fine compared to the rest of the industry. LFT outperforms 67.74% of its industry peers.
In the last couple of years the Profit Margin of LFT has grown nicely.
LFT's Operating Margin of 14.34% is fine compared to the rest of the industry. LFT outperforms 69.35% of its industry peers.
LFT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 29.18%, LFT is doing good in the industry, outperforming 64.52% of the companies in the same industry.
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
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.
LFT has a better debt/assets ratio than last year.
2.2 Solvency
LFT has an Altman-Z score of -0.75. 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 (-0.75) is worse than 75.81% 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's Debt to FCF ratio of 37.38 is fine compared to the rest of the industry. LFT outperforms 70.97% 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.
Looking at the Debt to Equity ratio, with a value of 3.27, LFT is in the better half of the industry, outperforming 66.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 37.38 | ||
| Altman-Z | -0.75 |
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 66.13% of its industry peers.
LFT has a Quick Ratio of 0.09. 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 0.09 is on the low side compared to the rest of the industry. LFT is outperformed by 66.13% of its industry peers.
| 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 -26.67%.
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.
The Revenue for LFT has decreased by -24.14% in the past year. This is quite bad
The Revenue has been growing by 26.10% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-26.67%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)-24.14%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-32.83%
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 -11.66% yearly.
The Revenue is expected to decrease by -23.56% on average over the next years. This is quite bad
EPS Next Y-31.14%
EPS Next 2Y-11.66%
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 6.61.
Compared to the rest of the industry, the Price/Earnings ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 88.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. LFT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.35, which indicates a rather cheap valuation of LFT.
91.94% of the companies in the same industry are more expensive than LFT, based on the Price/Forward Earnings ratio.
LFT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.61 | ||
| Fwd PE | 6.35 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LFT is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.63 | ||
| 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 -11.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-11.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.26%, LFT is a good candidate for dividend investing.
LFT's Dividend Yield is comparable with the industry average which is at 11.50.
Compared to an average S&P500 Dividend Yield of 2.38, LFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.26% |
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
275.65% of the earnings are spent on dividend by LFT. 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-11.66%
EPS Next 3YN/A
NYSE:LFT (9/17/2025, 2:58:27 PM)
2.18
+0.04 (+1.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.87%
Inst Owner Change27.84%
Ins Owners2.97%
Ins Owner Change0.53%
Market Cap114.10M
Analysts76.67
Price Target2.68 (22.94%)
Short Float %1.88%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.26% |
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)-8.7%
PT rev (3m)-8.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)-7.22%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)-9.2%
Revenue NQ rev (3m)-15.24%
Revenue NY rev (1m)-6.26%
Revenue NY rev (3m)-11.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.61 | ||
| Fwd PE | 6.35 | ||
| P/S | 1.15 | ||
| P/FCF | 5.63 | ||
| P/OCF | 5.63 | ||
| P/B | 0.49 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY15.14%
EPS(NY)0.34
Fwd EY15.75%
FCF(TTM)0.39
FCFY17.76%
OCF(TTM)0.39
OCFY17.76%
SpS1.89
BVpS4.42
TBVpS4.42
PEG (NY)N/A
PEG (5Y)1
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%
ROICexcg growth 3Y21.78%
ROICexcg 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 | -0.75 |
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)-26.67%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-44.44%
EPS Next Y-31.14%
EPS Next 2Y-11.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-24.14%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-32.83%
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%