LUMENT FINANCE TRUST INC (LFT) Stock Fundamental Analysis
NYSE:LFT - New York Stock Exchange, Inc. - US55025L1089 - REIT - Currency: USD
Overall LFT gets a fundamental rating of 5 out of 10. We evaluated LFT against 65 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
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.
Each year in the past 5 years LFT had a positive operating cash flow.
1.2 Ratios
LFT has a Return On Assets of 0.98%. This is in the better half of the industry: LFT outperforms 76.92% of its industry peers.
The Return On Equity of LFT (4.49%) is better than 66.15% of its industry peers.
With a decent Return On Invested Capital value of 1.13%, LFT is doing good in the industry, outperforming 78.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LFT is in line with the industry average of 1.42%.
The last Return On Invested Capital (1.13%) for LFT is above the 3 year average (1.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 4.49% | ||
| 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
With a decent Profit Margin value of 9.55%, LFT is doing good in the industry, outperforming 66.15% 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 13.83%, LFT is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Operating Margin of LFT has grown nicely.
LFT has a Gross Margin (28.37%) 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 | 13.83% | ||
| PM (TTM) | 9.55% | ||
| GM | 28.37% |
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.
Compared to 1 year ago, LFT has an improved debt to assets ratio.
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.
LFT has a worse Altman-Z score (-0.76) than 73.85% of its industry peers.
The Debt to FCF ratio of LFT is 36.99, which is on the high side as it means it would take LFT, 36.99 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 36.99, LFT is doing good in the industry, outperforming 73.85% of the companies in the same industry.
LFT has a Debt/Equity ratio of 3.53. This is a high value indicating a heavy dependency on external financing.
LFT's Debt to Equity ratio of 3.53 is fine compared to the rest of the industry. LFT outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 36.99 | ||
| 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.
LFT has a worse Current ratio (0.09) than 61.54% 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.
The Quick ratio of LFT (0.09) is worse than 61.54% 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 by -7.50% 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.
The Revenue for LFT has decreased by -10.98% in the past year. This is quite bad
Measured over the past years, LFT shows a very strong growth in Revenue. The Revenue has been growing by 26.10% on average per year.
EPS 1Y (TTM)-7.5%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-37.05%
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 -14.29% yearly.
Based on estimates for the next years, LFT will show a very negative growth in Revenue. The Revenue will decrease by -15.92% on average per year.
EPS Next Y-25.78%
EPS Next 2Y-14.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-26.67%
Revenue Next 2Y-15.92%
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
LFT is valuated cheaply with a Price/Earnings ratio of 5.92.
Compared to the rest of the industry, the Price/Earnings ratio of LFT indicates a rather cheap valuation: LFT is cheaper than 90.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, LFT is valued rather cheaply.
LFT is valuated cheaply with a Price/Forward Earnings ratio of 6.78.
89.23% 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 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
LFT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LFT is cheaper than 93.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of LFT may justify a higher PE ratio.
LFT's earnings are expected to decrease with -14.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-14.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LFT has a Yearly Dividend Yield of 9.29%, which is a nice return.
LFT's Dividend Yield is slightly below the industry average, which is at 11.55.
LFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.29% |
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 246.53% of its income as dividend. 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.
DP246.53%
EPS Next 2Y-14.29%
EPS Next 3YN/A
2.19
+0.09 (+4.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.65%
Inst Owner Change-1.01%
Ins Owners2.94%
Ins Owner Change0.47%
Market Cap114.58M
Analysts74.29
Price Target2.93 (33.79%)
Short Float %0.3%
Short Ratio0.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.29% |
Yearly Dividend0.39
Dividend Growth(5Y)5.24%
DP246.53%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.19%
Min EPS beat(2)-11.99%
Max EPS beat(2)7.62%
EPS beat(4)2
Avg EPS beat(4)-1%
Min EPS beat(4)-17.49%
Max EPS beat(4)17.87%
EPS beat(8)4
Avg EPS beat(8)0.03%
EPS beat(12)5
Avg EPS beat(12)-12.85%
EPS beat(16)7
Avg EPS beat(16)-8.69%
Revenue beat(2)0
Avg Revenue beat(2)-9.37%
Min Revenue beat(2)-12.75%
Max Revenue beat(2)-6%
Revenue beat(4)1
Avg Revenue beat(4)-4.14%
Min Revenue beat(4)-12.75%
Max Revenue beat(4)5.92%
Revenue beat(8)4
Avg Revenue beat(8)-0.23%
Revenue beat(12)7
Avg Revenue beat(12)2.01%
Revenue beat(16)11
Avg Revenue beat(16)17.42%
PT rev (1m)0%
PT rev (3m)1.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.81%
EPS NY rev (1m)-10.19%
EPS NY rev (3m)-6.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.4%
Revenue NY rev (1m)-9.01%
Revenue NY rev (3m)-15.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 6.78 | ||
| P/S | 1.05 | ||
| P/FCF | 5.17 | ||
| P/OCF | 5.17 | ||
| P/B | 0.49 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.37
EY16.89%
EPS(NY)0.32
Fwd EY14.76%
FCF(TTM)0.42
FCFY19.35%
OCF(TTM)0.42
OCFY19.35%
SpS2.08
BVpS4.43
TBVpS4.43
PEG (NY)N/A
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 4.49% | ||
| ROCE | 5.38% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.2% | ||
| ROICexgc | 1.21% | ||
| OM | 13.83% | ||
| PM (TTM) | 9.55% | ||
| GM | 28.37% | ||
| FCFM | 20.34% |
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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 36.99 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 213% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | -0.76 |
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)-7.5%
EPS 3Y2.38%
EPS 5Y6.58%
EPS Q2Q%-46.67%
EPS Next Y-25.78%
EPS Next 2Y-14.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y49.98%
Revenue growth 5Y26.1%
Sales Q2Q%-37.05%
Revenue Next Year-26.67%
Revenue Next 2Y-15.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.56%
EBIT growth 3Y22.43%
EBIT growth 5Y30.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y26.16%
FCF growth 3Y25.12%
FCF growth 5Y30.1%
OCF growth 1Y26.16%
OCF growth 3Y25.12%
OCF growth 5Y30.1%