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AFCG

AFC GammaNasdaqGM:AFCG Stock Report

Market Cap

US$363.9m

7D

1.4%

1Y

n/a

Updated

25 Sep, 2021

Data

Company Financials +
AFCG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance1/6
Financial Health6/6
Dividends3/6

AFCG Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for AFC Gamma
Historical stock prices
Current Share PriceUS$22.14
52 Week HighUS$19.75
52 Week LowUS$25.05
Beta0
1 Month Change4.88%
3 Month Change8.64%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-3.74%

Recent News & Updates

Jul 25

AFC Gamma: Getting Into The Weeds (Pun Intended)

Since our introductory article, shares in AFCG have declined by around 7.0%. Keep in mind, AFCG is a mortgage REIT, so the company does not own the real estate, it simply finances real estate for cannabis operators. Given the more recent price underperformance with AFCG, shares are now yielding 7.3%, we thought it was time for a closer look, or "get into the weeds".

Jul 01

AFC Gamma: Intro To A Specialized Lender In A Booming Space

AFCG makes intermediate-term, highly collateralized loans to companies operating in the burgeoning cannabis industry. CEO Leonard Tannenbaum was the founder and CEO of Fifth Street Asset Management for two decades before selling the company to Oaktree Capital Management. The mREIT went public in March 2021 and has since been busily putting the proceeds to work in new loans. AFCG currently offers a dividend yield of 7.4%. An insider recently bought shares on the open market for $20.71.

Shareholder Returns

AFCGUS Mortgage REITsUS Market
7D1.4%1.2%0.1%
1Yn/a38.2%35.3%

Return vs Industry: Insufficient data to determine how AFCG performed against the US Mortgage REITs industry.

Return vs Market: Insufficient data to determine how AFCG performed against the US Market.

Price Volatility

Is AFCG's price volatile compared to industry and market?
AFCG volatility
AFCG Beta0
Industry Beta1.48
Market Beta1

Stable Share Price: AFCG is not significantly more volatile than the rest 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 manages senior secured loans and other types of loans 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, 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 Fundamentals Summary

How do AFC Gamma's earnings and revenue compare to its market cap?
AFCG fundamental statistics
Market CapUS$363.88m
Earnings (TTM)US$10.35m
Revenue (TTM)US$11.48m

35.1x

P/E Ratio

31.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFCG income statement (TTM)
RevenueUS$11.48m
Cost of RevenueUS$0
Gross ProfitUS$11.48m
ExpensesUS$1.13m
EarningsUS$10.35m

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)0.63
Gross Margin100.00%
Net Profit Margin90.15%
Debt/Equity Ratio0.0%

How did AFCG perform over the long term?

See historical performance and comparison

Dividends

6.9%

Current Dividend Yield

46%

Payout Ratio

Does AFCG pay a reliable dividends?

See AFCG dividend history and benchmarks
When do you need to buy AFCG by to receive an upcoming dividend?
AFC Gamma dividend dates
Ex Dividend DateSep 29 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend4 days
Days until Dividend pay date20 days

Does AFCG pay a reliable dividends?

See AFCG dividend history and benchmarks

Valuation

Is AFC Gamma undervalued compared to its fair value and its price relative to the market?

11.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFCG ($22.14) is trading below our estimate of fair value ($25.12)

Significantly Below Fair Value: AFCG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AFCG is poor value based on its PE Ratio (35.1x) compared to the US Mortgage REITs industry average (9.6x).

PE vs Market: AFCG is poor value based on its PE Ratio (35.1x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: AFCG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: AFCG is overvalued based on its PB Ratio (4x) compared to the US Mortgage REITs industry average (1x).


Future Growth

How is AFC Gamma forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

57.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFCG's forecast earnings growth (57.4% per year) is above the savings rate (2%).

Earnings vs Market: AFCG's earnings (57.4% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AFCG's revenue (54.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: AFCG's revenue (54.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AFCG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has AFC Gamma performed over the past 5 years?

-4.9%

Historical Diversified Financials annual earnings growth


Earnings and Revenue History

Quality Earnings: AFCG has high quality earnings.

Growing Profit Margin: Insufficient data to determine if AFCG's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if AFCG's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare AFCG's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if AFCG's earnings growth over the past year exceeded the Mortgage REITs industry average.


Return on Equity

High ROE: AFCG's Return on Equity (11.3%) is considered low.


Financial Health

How is AFC Gamma's financial position?


Financial Position Analysis

Short Term Liabilities: AFCG's short term assets ($94.0M) exceed its short term liabilities ($2.3M).

Long Term Liabilities: AFCG has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AFCG is debt free.

Reducing Debt: AFCG has not had any debt for past 5 years.

Debt Coverage: AFCG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AFCG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is AFC Gamma current dividend yield, its reliability and sustainability?

6.87%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 25 2021Ex Dividend DateSep 29 2021Dividend Pay DateOct 15 202116 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AFCG's dividend (6.87%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: AFCG's dividend (6.87%) is in the top 25% of dividend payers in the US market (3.59%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AFCG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AFCG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.2%), AFCG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AFCG's dividends in 3 years are not forecast to be well covered by earnings (110.1% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Len Tannenbaum (50 yo)

1.17yrs

Tenure

Mr. Leonard Mark Tannenbaum, also known as Len, CFA, serves as a Manager and Chief Executive Officer at AFC Management, LLC. He has been Chief Executive Officer, Chairman and Director of the Board at AFC G...


Leadership Team

Experienced Management: AFCG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: AFCG's board of directors are not considered experienced ( 1.2 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: AFCG only recently listed within the past 12 months.


Top Shareholders

Company Information

AFC Gamma, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: AFC Gamma, Inc.
  • Ticker: AFCG
  • Exchange: NasdaqGM
  • Founded: 2020
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$363.884m
  • Shares outstanding: 16.44m
  • Website: https://www.afcgamma.com

Location

  • AFC Gamma, Inc.
  • 525 Okeechobee Boulevard
  • Suite 1770
  • West Palm Beach
  • Florida
  • 33401
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 02:26
End of Day Share Price2021/09/24 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.