Lument Finance Trust, Inc. Fundamental Analysis (NYSE: LFT-PA)
Lument Finance Trust, Inc. (NYSE: LFT-PA) shows weak financial fundamentals with a PE ratio of -1.46, profit margin of -18.34%, and ROE of -6.31%. The company generates $0.1B in annual revenue with weak year-over-year growth of 1.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 1.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LFT-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakLFT-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLFT-PA trades at attractive valuation levels.
Growth Score
WeakLFT-PA faces weak or negative growth trends.
Financial Health Score
WeakLFT-PA carries high financial risk with limited liquidity.
Profitability Score
WeakLFT-PA struggles to sustain strong margins.
Key Financial Metrics
Is LFT-PA Expensive or Cheap?
P/E Ratio
LFT-PA trades at -1.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LFT-PA's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Lument Finance Trust, Inc. at 0.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -27.48 times EBITDA. This is generally considered low.
How Well Does LFT-PA Make Money?
Net Profit Margin
For every $100 in sales, Lument Finance Trust, Inc. keeps $-18.34 as profit after all expenses.
Operating Margin
Core operations generate 43.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.31 in profit for every $100 of shareholder equity.
ROA
Lument Finance Trust, Inc. generates $-1.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lument Finance Trust, Inc. generates limited operating cash flow of $6.63M, signaling weaker underlying cash strength.
Free Cash Flow
Lument Finance Trust, Inc. produces free cash flow of $6.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.23 in free cash annually.
FCF Yield
LFT-PA converts 23.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.06
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How LFT-PA Stacks Against Its Sector Peers
| Metric | LFT-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.46 | 25.44 | Better (Cheaper) |
| ROE | -6.31% | 828.00% | Weak |
| Net Margin | -18.34% | 2786.00% | Weak |
| Debt/Equity | 4.40 | -37.78 (disorted) | Distorted |
| Current Ratio | 0.00 | 51.31 | Weak Liquidity |
| ROA | -1.23% | 284.00% | Weak |
LFT-PA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lument Finance Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
97.03%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-115.47%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-60.64%
Industry Style: Income, Inflation Hedge, REIT
Declining