Affirm logged a -2.2% change during today's afternoon session, and is now trading at a price of $59.69 per share.
Affirm returned gains of 97.6% last year, with its stock price reaching a high of $82.53 and a low of $22.25. Over the same period, the stock outperformed the S&P 500 index by 86.3%. More recently, the company's 50-day average price was $49.35. Affirm Holdings, Inc. operates payment network in the United States, Canada, and internationally. Based in San Francisco, CA, the Large-Cap Finance company has 2,006 full time employees. Affirm has not offered a dividend during the last year.
Strong Revenue Growth but an Average Amount of Debt:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $264 | $510 | $870 | $1,349 | $1,588 | $2,323 |
| Interest Income (M) | $26 | $32 | $53 | $70 | $183 | $344 |
| Operating Margins | -48% | -21% | -44% | -64% | -76% | -27% |
| Net Margins | -46% | -22% | -51% | -52% | -62% | -22% |
| Net Income (M) | -$120 | -$113 | -$441 | -$707 | -$985 | -$518 |
| Depreciation & Amort. (M) | $5 | $9 | $20 | $53 | $135 | $169 |
| Diluted Shares (M) | 48 | 71 | 282 | 294 | 308 | 345 |
| Earnings Per Share | -$2.84 | -$2.63 | -$2.94 | -$2.51 | -$3.34 | -$1.67 |
| EPS Growth | n/a | 7.39% | -11.79% | 14.63% | -33.07% | 50.0% |
| Free Cash Flow (M) | -$107 | -$31 | -$213 | -$248 | -$109 | $291 |
| CAPEX (M) | $19 | $2 | $20 | $86 | $121 | $159 |
| Total Debt (M) | n/a | $818 | $681 | $673 | $1,765 | $7,307 |
Affirm has weak operating margins with a stable trend, negative cash flows, and an average amount of debt. We also note that the company benefits from rapidly growing revenues and increasing reinvestment in the business and positive EPS growth. Furthermore, Affirm's financial statements do not display any obvious red flags.
Affirm does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $0.47, the company has a forward P/E ratio of 105.0. In comparison, the average P/E ratio for the Finance sector is 15.92. Furthermore, Affirm is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.7 is higher than the sector average of 1.78.
Affirm Has an Analyst Consensus of Some Upside Potential:
The 23 analysts following Affirm have set target prices ranging from $56.0 to $83.0 per share, for an average of $68.05 with a buy rating. The company is trading -12.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Affirm has an average amount of shares sold short because 5.9% of the company's shares are sold short. Institutions own 80.5% of the company's shares, and the insider ownership rate stands at 4.67%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $1,389,167,556.
