LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
USA - NYSE:LFT - US55025L1089 - REIT
1.71 USD
-0.06 (-3.39%)
1.71 USD
0 (0%)
LFT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. LFT has an excellent profitability rating, but there are concerns on its financial health. LFT has a bad growth rate and is valued cheaply.
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
With an excellent Return On Assets value of 0.95%, LFT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
LFT's Return On Equity of 4.11% is fine compared to the rest of the industry. LFT outperforms 69.70% of its industry peers.
The Return On Invested Capital of LFT (1.13%) is better than 80.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LFT is in line with the industry average of 1.28%.
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 has a better Profit Margin (9.60%) than 69.70% of its industry peers.
In the last couple of years the Profit Margin of LFT has grown nicely.
LFT has a Operating Margin of 14.34%. This is in the better half of the industry: LFT outperforms 71.21% of its industry peers.
In the last couple of years the Operating Margin of LFT has grown nicely.
LFT has a Gross Margin of 29.18%. This is comparable to the rest of the industry: LFT outperforms 59.09% of its industry peers.
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
The number of shares outstanding for LFT remains at a similar level compared to 1 year ago.
The number of shares outstanding for LFT has been increased compared to 5 years ago.
The debt/assets ratio for LFT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.76, we must say that LFT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.76, LFT is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
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 has a Debt to FCF ratio of 37.38. This is in the better half of the industry: LFT outperforms 72.73% 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.
LFT has a better Debt to Equity ratio (3.27) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 37.38 | ||
| Altman-Z | -0.76 |
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.
Looking at the Current ratio, with a value of 0.09, LFT is doing worse than 60.61% of the companies in the same industry.
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 has a worse Quick ratio (0.09) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The earnings per share for LFT have decreased strongly by -26.67% in the last year.
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.
Looking at the last year, LFT shows a very negative growth in Revenue. The Revenue has decreased by -24.14% in the last year.
LFT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.10% yearly.
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
Based on estimates for the next years, LFT will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.97% on average per year.
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-14.97%
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 5.18, which indicates a rather cheap valuation of LFT.
Compared to the rest of the industry, the Price/Earnings ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 92.42% of the companies listed in the same industry.
LFT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
A Price/Forward Earnings ratio of 5.37 indicates a rather cheap valuation of LFT.
92.42% 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 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.18 | ||
| Fwd PE | 5.37 |
4.2 Price Multiples
92.42% of the companies in the same industry are more expensive than LFT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.42 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of LFT may justify a higher PE ratio.
A cheap valuation may be justified as LFT's earnings are expected to decrease with -14.97% in the coming years.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y-14.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.04%, LFT is a good candidate for dividend investing.
In the last 3 months the price of LFT has falen by -25.33%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 9.04, LFT pays less dividend than the industry average, which is at 13.04. 83.33% of the companies listed in the same industry pay a better dividend than LFT!
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
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
275.65% 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.
DP275.65%
EPS Next 2Y-14.97%
EPS Next 3YN/A
1.71
-0.06 (-3.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change0.01%
Ins Owners2.99%
Ins Owner Change0.55%
Market Cap89.50M
Revenue(TTM)98.94M
Net Income(TTM)9.50M
Analysts76.67
Price Target2.68 (56.73%)
Short Float %1.75%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
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)0%
PT rev (3m)-8.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.18 | ||
| Fwd PE | 5.37 | ||
| P/S | 0.9 | ||
| P/FCF | 4.42 | ||
| P/OCF | 4.42 | ||
| P/B | 0.39 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY19.3%
EPS(NY)0.32
Fwd EY18.61%
FCF(TTM)0.39
FCFY22.64%
OCF(TTM)0.39
OCFY22.64%
SpS1.89
BVpS4.42
TBVpS4.42
PEG (NY)N/A
PEG (5Y)0.79
Graham Number5.73
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%
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-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 | -0.76 |
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-14.97%
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%