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LM FUNDING AMERICA INC (LMFA) Stock Fundamental Analysis

NASDAQ:LMFA - Nasdaq - US5020745031 - Common Stock - Currency: USD

1.73  -0.08 (-4.42%)

Fundamental Rating

2

LMFA gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. While LMFA seems to be doing ok healthwise, there are quite some concerns on its profitability. LMFA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year LMFA has reported negative net income.
In the past year LMFA has reported a negative cash flow from operations.
In the past 5 years LMFA reported 4 times negative net income.
In the past 5 years LMFA reported 4 times negative operating cash flow.
LMFA Yearly Net Income VS EBIT VS OCF VS FCFLMFA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10M -20M

1.2 Ratios

LMFA has a Return On Assets of -30.35%. This is in the lower half of the industry: LMFA underperforms 78.62% of its industry peers.
LMFA's Return On Equity of -36.71% is on the low side compared to the rest of the industry. LMFA is outperformed by 64.86% of its industry peers.
Industry RankSector Rank
ROA -30.35%
ROE -36.71%
ROIC N/A
ROA(3y)-29.86%
ROA(5y)-32.34%
ROE(3y)-31.89%
ROE(5y)-47.38%
ROIC(3y)N/A
ROIC(5y)N/A
LMFA Yearly ROA, ROE, ROICLMFA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -200 -400 -600 -800

1.3 Margins

The Gross Margin of LMFA (22.37%) is worse than 85.14% of its industry peers.
LMFA's Gross Margin has declined in the last couple of years.
LMFA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 22.37%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y-26.26%
LMFA Yearly Profit, Operating, Gross MarginsLMFA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500 -1K -1.5K

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2. Health

2.1 Basic Checks

LMFA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LMFA has more shares outstanding
Compared to 5 years ago, LMFA has more shares outstanding
LMFA has a worse debt/assets ratio than last year.
LMFA Yearly Shares OutstandingLMFA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500K 1M 1.5M 2M
LMFA Yearly Total Debt VS Total AssetsLMFA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M

2.2 Solvency

Based on the Altman-Z score of -2.66, we must say that LMFA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -2.66, LMFA is doing worse than 79.35% of the companies in the same industry.
LMFA has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
LMFA has a Debt to Equity ratio (0.21) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF N/A
Altman-Z -2.66
ROIC/WACCN/A
WACC13.78%
LMFA Yearly LT Debt VS Equity VS FCFLMFA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M 60M

2.3 Liquidity

A Current Ratio of 3.65 indicates that LMFA has no problem at all paying its short term obligations.
LMFA's Current ratio of 3.65 is amongst the best of the industry. LMFA outperforms 81.16% of its industry peers.
LMFA has a Quick Ratio of 3.65. This indicates that LMFA is financially healthy and has no problem in meeting its short term obligations.
LMFA's Quick ratio of 3.65 is amongst the best of the industry. LMFA outperforms 81.16% of its industry peers.
Industry RankSector Rank
Current Ratio 3.65
Quick Ratio 3.65
LMFA Yearly Current Assets VS Current LiabilitesLMFA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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3. Growth

3.1 Past

LMFA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.01%, which is quite impressive.
The Revenue has grown by 77.30% in the past year. This is a very strong growth!
LMFA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.82% yearly.
EPS 1Y (TTM)73.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.18%
Revenue 1Y (TTM)77.3%
Revenue growth 3Y117.41%
Revenue growth 5Y30.82%
Sales Q2Q%-63.32%

3.2 Future

The Earnings Per Share is expected to grow by 14.39% on average over the next years. This is quite good.
Based on estimates for the next years, LMFA will show a very negative growth in Revenue. The Revenue will decrease by -10.11% on average per year.
EPS Next Y29.3%
EPS Next 2Y14.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16%
Revenue Next 2Y-10.11%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

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.
LMFA Yearly Revenue VS EstimatesLMFA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M
LMFA Yearly EPS VS EstimatesLMFA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -2 -4 -6

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4. Valuation

4.1 Price/Earnings Ratio

LMFA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year LMFA is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
LMFA Price Earnings VS Forward Price EarningsLMFA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
LMFA Per share dataLMFA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

A more expensive valuation may be justified as LMFA's earnings are expected to grow with 14.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.39%
EPS Next 3YN/A

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5. Dividend

5.1 Amount

LMFA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LM FUNDING AMERICA INC

NASDAQ:LMFA (2/21/2025, 8:00:00 PM)

1.73

-0.08 (-4.42%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-13 2024-11-13/bmo
Earnings (Next)03-31 2025-03-31/amc
Inst Owners14.18%
Inst Owner Change-100%
Ins Owners11.98%
Ins Owner Change0.13%
Market Cap5.88M
Analysts80
Price Target6.12 (253.76%)
Short Float %2.68%
Short Ratio0.95
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-110.13%
Min EPS beat(2)-181.43%
Max EPS beat(2)-38.82%
EPS beat(4)2
Avg EPS beat(4)7.48%
Min EPS beat(4)-181.43%
Max EPS beat(4)204.92%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-19.7%
Min Revenue beat(2)-31.64%
Max Revenue beat(2)-7.75%
Revenue beat(4)0
Avg Revenue beat(4)-12.41%
Min Revenue beat(4)-31.64%
Max Revenue beat(4)-0.96%
Revenue beat(8)3
Avg Revenue beat(8)8.27%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.64%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.33
P/FCF N/A
P/OCF N/A
P/B 0.19
P/tB 0.19
EV/EBITDA N/A
EPS(TTM)-4.27
EYN/A
EPS(NY)-5.42
Fwd EYN/A
FCF(TTM)-3.07
FCFYN/A
OCF(TTM)-2.79
OCFYN/A
SpS5.24
BVpS8.88
TBVpS8.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -30.35%
ROE -36.71%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 22.37%
FCFM N/A
ROA(3y)-29.86%
ROA(5y)-32.34%
ROE(3y)-31.89%
ROE(5y)-47.38%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y-26.26%
F-Score5
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 10.92%
Cap/Sales 5.28%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.65
Quick Ratio 3.65
Altman-Z -2.66
F-Score5
WACC13.78%
ROIC/WACCN/A
Cap/Depr(3y)382015%
Cap/Depr(5y)229216%
Cap/Sales(3y)333.81%
Cap/Sales(5y)200.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.18%
EPS Next Y29.3%
EPS Next 2Y14.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)77.3%
Revenue growth 3Y117.41%
Revenue growth 5Y30.82%
Sales Q2Q%-63.32%
Revenue Next Year-16%
Revenue Next 2Y-10.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year103.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y70.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-123.05%
OCF growth 3YN/A
OCF growth 5YN/A