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%)
Taking everything into account, LFT scores 4 out of 10 in our fundamental rating. LFT was compared to 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.
LFT had a positive operating cash flow in the past year.
In the past 5 years LFT has always been profitable.
LFT had a positive operating cash flow in each of the past 5 years.
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.
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
LFT has a Profit Margin of 5.78%. This is comparable to the rest of the industry: LFT outperforms 45.59% of its industry peers.
LFT's Profit Margin has improved in the last couple of years.
LFT has a Operating Margin (11.12%) which is comparable to the rest of the industry.
LFT's Operating Margin has improved in the last couple of years.
LFT has a Gross Margin (27.94%) which is in line with its industry peers.
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
The debt/assets ratio for LFT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.78, we must say that LFT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LFT (-0.78) is worse than 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.
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
A Current Ratio of 0.11 indicates that LFT may have some problems paying its short term obligations.
LFT has a worse Current ratio (0.11) than 63.24% of its industry peers.
A Quick Ratio of 0.11 indicates that LFT may have some problems paying its short term obligations.
The Quick ratio of LFT (0.11) is worse than 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.
LFT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.72%.
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
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
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.
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 5.72, which indicates a rather cheap valuation of LFT.
Based on the Price/Earnings ratio, LFT is valued cheaply inside the industry as 95.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. LFT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.34, 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 23.88, which is the current average of the S&P500 Index.
| 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
A cheap valuation may be justified as LFT's earnings are expected to decrease with -22.01% in the coming years.
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 11.35%, which is a nice return.
Compared to an average industry Dividend Yield of 11.16, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
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.
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
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
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%
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 | 11.35% |
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%.