Key Topics in Affirm Stock Discussed by Investors Today

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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