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AFCG

AFC Gamma NasdaqGM:AFCG Stock Report

Last Price

US$15.30

Market Cap

US$303.8m

7D

-7.4%

1Y

-29.8%

Updated

02 Oct, 2022

Data

Company Financials +
AFCG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance2/6
Financial Health3/6
Dividends2/6

AFCG Stock Overview

AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other types of loans and debt securities for established companies operating in the cannabis industry in states that have legalized medicinal and/or adult use cannabis.

AFC Gamma, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AFC Gamma
Historical stock prices
Current Share PriceUS$15.30
52 Week HighUS$25.50
52 Week LowUS$14.90
Beta0
1 Month Change-8.05%
3 Month Change-2.67%
1 Year Change-29.85%
3 Year Changen/a
5 Year Changen/a
Change since IPO-33.48%

Recent News & Updates

Sep 15

AFC Gamma declares $0.56 dividend

AFC Gamma (NASDAQ:AFCG) declares $0.56/share quarterly dividend, in line with previous. Forward yield 12.9% Payable Oct. 14; for shareholders of record Sept. 30; ex-div Sept. 29. See AFCG Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 16

AFC Gamma: 11.20% Dividend Yield With Solid Q2 2022 Results

AFC Gamma has a strong dividend yield of 11.20% with quarterly dividend increasing 55% since March 2021. AFCG posted solid Q2 2022 results beating the market EPS estimates by 20% and revenue estimates by 13%. I assign a buy rating for the company after considering all the growth and risk factors. Investment Thesis AFC Gamma, Inc. (AFCG) is a leading lender of institutional loans to nationwide cannabis producers and distributors. AFCG is headquartered in West Palm Beach, Florida. In this thesis, I will be discussing about the company's strong dividend yield. I will also be analyzing the second quarter results posted by the company and its future growth prospects. I assign a buy rating for AFCG after considering all the growth and risk factors. Company Overview AFCG is a mortgage real estate investment trust ((REIT)), primarily lending loans to high-quality cannabis cultivators, producers, and distributors in the United States. The company is especially known for having a well-balanced lending portfolio, safeguarding the company from volatile markets. The company provides secured loans backed by significantly higher in value collateral. It generally provides loans to well-established companies having considerable cash flows, limiting the company's risk exposure. 11.20% Dividend Yield TipRanks AFCG has a strong dividend yield of 11.20% at current share price of $18.22. As we can see in the chart above, the dividend payout has been consistently increasing since March 2021. The dividend per share has seen a 55% growth from $0.36 in March 2021 to $0.56 in June 2022. Along with the increased dividend payout, the dividend yield has also increased from 7%-8% in March 2021 to 11%-12% currently. I believe with the growing cannabis market and reduced uncertainties around the legalization of cannabis, the company is on a significant growth track with limited downside risk. Solid Q2 2022 Results AFCG recently posted solid Q2 2022 results beating the market estimates. The company beat the EPS estimates by 20% and revenue estimates by 13%. It experienced improvement across segments with improved profit margins. I believe the company is on a significant growth track, and that is clearly reflected in the Q2 2022 results. The company is positive about the coming quarters and expects to expand its loan portfolio. SEC:10Q AFCG AFCG reported an Interest income of $21.6 million, a significant 148% jump compared to $8.7 million in the same quarter last year. As per my analysis, the expansion in the mortgage portfolio and well-balanced loan spread were the primary factors behind this increase. The company reported total expenses of $5.7 million, a 90% increase. I believe the increase in human resources and expenses related to human resource management were the main reasons behind the increased expenses. The total net income stood at $11.3 million, a solid 62% net profit margin. The diluted EPS was reported at $0.57 against the Q2 2021 EPS of $0.34, an effective increase of 67%. I believe the company will continue this performance in the coming quarters with continuous expansion and a well-balanced lending portfolio. Leonard Tannenbaum, AFC Gamma's Chief Executive Officer, stated, Given the current market environment with operators experiencing pricing pressures and longer lead times to raise equity, we continue to act disciplined in our approach towards deploying capital. We are focused on supporting existing operators as well as new operators with strong track-records in the industry. Despite the slower than expected pace of originations, we have the capacity to do more deals and expect to close some in the coming quarter. We look forward to continue supporting the industry as it expands and matures. Overall, AFCG posted strong quarter with improved margins and increased lending portfolio. The company has not provided any guidance for the future quarters but I estimate the FY22 EPS to be in the range of $2.26-$2.32. The company is well positioned in the industry to capitalize on the growing cannabis market and we can witness a significant upside in the stock price in the near future. Key Risk Factor

Aug 08

AFC Gamma Q2 2022 Earnings Preview

AFC Gamma (NASDAQ:AFCG) is scheduled to announce Q2 earnings results on Tuesday, August 9th, before market open. The consensus EPS Estimate is $0.55 (+27.9% Y/Y) and the consensus Revenue Estimate is $17.58M Over the last 1 year, AFCG has beaten EPS estimates 75% of the time and has beaten revenue estimates 50% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 5 downward. Revenue estimates have seen 3 upward revisions and 3 downward.

Shareholder Returns

AFCGUS Mortgage REITsUS Market
7D-7.4%-15.6%-2.5%
1Y-29.8%-42.4%-23.2%

Return vs Industry: AFCG exceeded the US Mortgage REITs industry which returned -42.4% over the past year.

Return vs Market: AFCG underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is AFCG's price volatile compared to industry and market?
AFCG volatility
AFCG Average Weekly Movement4.1%
Mortgage REITs Industry Average Movement5.3%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: AFCG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AFCG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2020n/aLen Tannenbaumhttps://www.afcgamma.com

AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other types of loans and debt securities for established companies operating in the cannabis industry in states that have legalized medicinal and/or adult use cannabis. It primarily originates loans structured as senior loans secured by real estate, equipment, and licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. AFC Gamma, Inc. has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986.

AFC Gamma, Inc. Fundamentals Summary

How do AFC Gamma's earnings and revenue compare to its market cap?
AFCG fundamental statistics
Market CapUS$303.83m
Earnings (TTM)US$36.49m
Revenue (TTM)US$55.98m

8.3x

P/E Ratio

5.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFCG income statement (TTM)
RevenueUS$55.98m
Cost of RevenueUS$0
Gross ProfitUS$55.98m
Other ExpensesUS$19.50m
EarningsUS$36.49m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.84
Gross Margin100.00%
Net Profit Margin65.17%
Debt/Equity Ratio28.6%

How did AFCG perform over the long term?

See historical performance and comparison

Dividends

14.6%

Current Dividend Yield

100%

Payout Ratio