Now trading at a price of $27.7, Affirm has moved -2.3% so far today.
Affirm returned gains of 73.3% last year, with its stock price reaching a high of $52.48 and a low of $13.67. Over the same period, the stock outperformed the S&P 500 index by 48.6%. More recently, the company's 50-day average price was $31.47. Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. Based in San Francisco, CA, the Mid-Cap Finance company has 2,171 full time employees. Affirm has not offered a dividend during the last year.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Revenue (M) | $264 | $510 | $870 | $1,349 | $1,588 |
| Interest Income (M) | $26 | $32 | $53 | $70 | $183 |
| Operating Margins | -48% | -21% | -44% | -64% | -76% |
| Net Margins | -46% | -22% | -51% | -52% | -62% |
| Net Income (M) | -$120 | -$113 | -$441 | -$707 | -$985 |
| Depreciation & Amort. (M) | $5 | $9 | $20 | $53 | $135 |
| Diluted Shares (M) | 48 | 71 | 282 | 294 | 308 |
| Earnings Per Share | -$2.84 | -$2.63 | -$2.94 | -$2.51 | -$3.34 |
| EPS Growth | n/a | 7.39% | -11.79% | 14.63% | -33.07% |
| Free Cash Flow (M) | -$107 | -$31 | -$213 | -$248 | -$109 |
| CAPEX (M) | $19 | $2 | $20 | $86 | $121 |
Affirm does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at $-1.51. The average P/E ratio for the Finance sector is 15.89. Furthermore, Affirm is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.26 is higher than the sector average of 1.76.
Affirm Has an Analyst Consensus of Strong Upside Potential:
The 14 analysts following Affirm have set target prices ranging from $20.0 to $65.0 per share, for an average of $37.22 with a hold rating. The company is trading -25.6% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Affirm has an above average percentage of its shares sold short because 13.2% of the company's shares are sold short. Institutions own 83.0% of the company's shares, and the insider ownership rate stands at 4.84%, suggesting a decent amount of insider shareholders. The largest shareholder is Morgan Stanley, whose 12% stake in the company is worth $846,766,503.
