Finance of America Companies Inc. Fundamental Analysis (NYSE: FOA)
Finance of America Companies Inc. Fundamental Analysis (NYSE: FOA)
Finance of America Companies Inc. (NYSE: FOA) shows moderate financial fundamentals with a PE ratio of -36.64, profit margin of -0.02%, and ROE of -0.10%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 9.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -95.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FOA's fundamental strength across five key dimensions:
Efficiency Score
WeakFOA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFOA trades at attractive valuation levels.
Growth Score
ModerateFOA shows steady but slowing expansion.
Financial Health Score
WeakFOA carries high financial risk with limited liquidity.
Profitability Score
WeakFOA struggles to sustain strong margins.
Key Financial Metrics
Is FOA Expensive or Cheap?
P/E Ratio
FOA trades at -36.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FOA's PEG of -0.11 indicates potential undervaluation.
Price to Book
The market values Finance of America Companies Inc. at 0.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 59.33 times EBITDA. This signals the market has high growth expectations.
How Well Does FOA Make Money?
Net Profit Margin
For every $100 in sales, Finance of America Companies Inc. keeps $-0.02 as profit after all expenses.
Operating Margin
Core operations generate 24.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.10 in profit for every $100 of shareholder equity.
ROA
Finance of America Companies Inc. generates $-0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Finance of America Companies Inc. generates limited operating cash flow of $-628.62M, signaling weaker underlying cash strength.
Free Cash Flow
Finance of America Companies Inc. generates weak or negative free cash flow of $-628.62M, restricting financial flexibility.
FCF Per Share
Each share generates $-70.34 in free cash annually.
FCF Yield
FOA converts -4.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-36.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
106.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How FOA Stacks Against Its Sector Peers
| Metric | FOA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -36.64 | 20.36 | Better (Cheaper) |
| ROE | -0.10% | 646.00% | Weak |
| Net Margin | -0.02% | -1507.00% (disorted) | Weak |
| Debt/Equity | 106.04 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.11 | 828.93 | Weak Liquidity |
| ROA | -0.00% | -515.00% (disorted) | Weak |
FOA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Finance of America Companies Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-73.14%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-97.37%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
81.12%
Industry Style: Value, Dividend, Cyclical
High Growth