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FOA

Finance Of America Companies NYSE:FOA Stock Report

Last Price

US$1.79

Market Cap

US$342.1m

7D

1.1%

1Y

-73.0%

Updated

06 Aug, 2022

Data

Company Financials +
FOA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance0/6
Financial Health0/6
Dividends0/6

FOA Stock Overview

Finance of America Companies Inc. operates a consumer lending platform in the United States.

Rewards

Trading at 87.2% below our estimate of its fair value

Earnings are forecast to grow 147.31% per year

Risk Analysis

No risks detected for FOA from our risk checks.

Finance Of America Companies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Finance Of America Companies
Historical stock prices
Current Share PriceUS$1.79
52 Week HighUS$6.72
52 Week LowUS$1.53
Beta0.73
1 Month Change-3.24%
3 Month Change-28.11%
1 Year Change-72.96%
3 Year Change-81.87%
5 Year Changen/a
Change since IPO-81.52%

Recent News & Updates

Shareholder Returns

FOAUS MortgageUS Market
7D1.1%2.2%1.0%
1Y-73.0%-23.4%-12.9%

Return vs Industry: FOA underperformed the US Mortgage industry which returned -23.6% over the past year.

Return vs Market: FOA underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is FOA's price volatile compared to industry and market?
FOA volatility
FOA Average Weekly Movement9.1%
Mortgage Industry Average Movement3.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: FOA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FOA's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20136,674Graham Fleminghttps://www.financeofamerica.com

Finance of America Companies Inc. operates a consumer lending platform in the United States. The company operates through: Mortgage Originations, Reverse Originations, Commercial Originations, Lender Services, and Portfolio Management segments. It provides residential mortgage loans to the government sponsored entities; government-insured agricultural lending solutions to farmers; product development, loan securitization, loan sales, risk management, asset management, and servicing oversight services to enterprise and third-party funds; and ancillary business services, title agency and title insurance services, mortgage servicing rights valuation and trade brokerage, transactional fulfillment services, mortgage loan third party review or due diligence services, and appraisal and capital management services to residential mortgage, student lending, and commercial lending industry customers.

Finance Of America Companies Fundamentals Summary

How do Finance Of America Companies's earnings and revenue compare to its market cap?
FOA fundamental statistics
Market CapUS$342.08m
Earnings (TTM)-US$543.10m
Revenue (TTM)US$1.25b

0.3x

P/B Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FOA income statement (TTM)
RevenueUS$1.25b
Cost of RevenueUS$0
Gross ProfitUS$1.25b
Other ExpensesUS$1.79b
Earnings-US$543.10m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-8.69
Gross Margin100.00%
Net Profit Margin-43.52%
Debt/Equity Ratio1,123.5%

How did FOA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FOA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FOA?

Other financial metrics that can be useful for relative valuation.

FOA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Book Ratio vs Peers

How does FOA's PB Ratio compare to its peers?

FOA PB Ratio vs Peers
The above table shows the PB ratio for FOA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average0.8x
HBCP Home Bancorp
1x7.6%US$328.1m
VEL Velocity Financial
1.1x44.2%US$377.3m
BLFY Blue Foundry Bancorp
0.7x167.8%US$305.5m
SBT Sterling Bancorp (Southfield MI)
0.9x-20.4%US$297.3m
FOA Finance Of America Companies
0.3x147.3%US$342.1m

Price-To-Book vs Peers: FOA is good value based on its Price-To-Book Ratio (0.3x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does FOA's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Book vs Industry: FOA is good value based on its Price-To-Book Ratio (0.3x) compared to the US Mortgage industry average (1x)


Price to Book Ratio vs Fair Ratio

What is FOA's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FOA PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.3x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate FOA's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of FOA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FOA ($1.79) is trading below our estimate of fair value ($14.01)

Significantly Below Fair Value: FOA is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Finance Of America Companies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


147.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FOA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: FOA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FOA is expected to become profitable in the next 3 years.

Revenue vs Market: FOA's revenue (12.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: FOA's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FOA's Return on Equity is forecast to be high in 3 years time (30%)


Discover growth companies

Past Performance

How has Finance Of America Companies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-26.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FOA is currently unprofitable.

Growing Profit Margin: FOA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FOA is unprofitable, and losses have increased over the past 5 years at a rate of 26.7% per year.

Accelerating Growth: Unable to compare FOA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FOA is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (1.7%).


Return on Equity

High ROE: FOA has a negative Return on Equity (-175.86%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Finance Of America Companies's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

0/6

Financial Health Score 0/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FOA's Assets to Equity ratio (25.2x) is very high.

Allowance for Bad Loans: Insufficient data to determine if FOA has a sufficient allowance for bad loans.

Low Risk Liabilities: FOA reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if FOA has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: FOA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if FOA has an appropriate level of bad loans.


Discover healthy companies

Dividend

What is Finance Of America Companies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FOA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FOA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FOA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FOA's dividend payments have been increasing.


Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FOA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Graham Fleming (52 yo)

1.83yrs

Tenure

US$17,625,510

Compensation

Mr. Graham A. Fleming serves as President of Finance Of America Companies Inc. since October 2020 and serves as its Interim Chief Executive Officer since July 01, 2022. He joined Finance Of America Compani...


CEO Compensation Analysis

Compensation vs Market: Graham's total compensation ($USD17.63M) is above average for companies of similar size in the US market ($USD2.70M).

Compensation vs Earnings: Graham's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: FOA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: FOA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Finance Of America Companies Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Finance Of America Companies Inc.
  • Ticker: FOA
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: US$342.083m
  • Market Cap: US$111.829m
  • Shares outstanding: 191.11m
  • Website: https://www.financeofamerica.com

Number of Employees


Location

  • Finance Of America Companies Inc.
  • 909 Lake Carolyn Parkway
  • Suite 1550
  • Irving
  • Texas
  • 75039
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.