LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LFT - US55025L1089 - REIT
1.43 USD
+0.04 (+2.88%)
1.45 USD
+0.02 (+1.4%)
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. While LFT is still in line with the averages on profitability rating, there are concerns on its financial health. 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
LFT had positive earnings in the past year.
LFT had a positive operating cash flow in the past year.
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
LFT has a Return On Assets (0.53%) which is comparable to the rest of the industry.
With a Return On Equity value of 2.20%, LFT perfoms like the industry average, 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.
LFT's Profit Margin has improved in the last couple of years.
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.
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
The number of shares outstanding for LFT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LFT has more shares outstanding
LFT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.78, we must say that LFT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.78, LFT is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
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.
LFT has a Debt/Equity ratio of 3.12. This is a high value indicating a heavy dependency on external 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 has a worse Current ratio (0.11) than 63.24% of its industry peers.
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 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%.
LFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
Looking at the last year, LFT shows a very negative growth in Revenue. The Revenue has decreased by -31.72% 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)-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
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 5.72.
Compared to the rest of the industry, the Price/Earnings ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 95.59% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. LFT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.34, which indicates a rather cheap valuation of LFT.
Based on the Price/Forward Earnings ratio, LFT is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, LFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 5.34 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LFT is valued cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| 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)0.87
EPS Next 2Y-22.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 11.51%, which is a nice return.
Compared to an average industry Dividend Yield of 10.90, LFT has a dividend in line with its industry peers.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.51% |
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
496.72% 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.
DP496.72%
EPS Next 2Y-22.01%
EPS Next 3YN/A
1.43
+0.04 (+2.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners50.89%
Inst Owner Change0.02%
Ins Owners3.25%
Ins Owner Change0.93%
Market Cap74.87M
Revenue(TTM)87.56M
Net Income(TTM)5.06M
Analysts46.67
Price Target2.68 (87.41%)
Short Float %2.06%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.51% |
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)0%
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 | 5.72 | ||
| Fwd PE | 5.34 | ||
| P/S | 0.86 | ||
| P/FCF | 4.93 | ||
| P/OCF | 4.93 | ||
| P/B | 0.33 | ||
| P/tB | 0.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.25
EY17.48%
EPS(NY)0.27
Fwd EY18.72%
FCF(TTM)0.29
FCFY20.27%
OCF(TTM)0.29
OCFY20.27%
SpS1.67
BVpS4.39
TBVpS4.39
PEG (NY)N/A
PEG (5Y)0.87
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 5.72 and the Price/Book (PB) ratio is 0.33.
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%.