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
|Historical stock prices|
|Current Share Price||US$22.14|
|52 Week High||US$19.75|
|52 Week Low||US$25.05|
|1 Month Change||4.88%|
|3 Month Change||8.64%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-3.74%|
Recent News & Updates
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".
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.
|AFCG||US Mortgage REITs||US Market|
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.
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
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
|AFCG fundamental statistics|
Is AFCG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AFCG income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Dec 31, 2020
Next Earnings Date
|Earnings per share (EPS)||0.63|
|Net Profit Margin||90.15%|
How did AFCG perform over the long term?See historical performance and comparison
6.9%Current Dividend Yield
Does AFCG pay a reliable dividends?See AFCG dividend history and benchmarks
|AFC Gamma dividend dates|
|Ex Dividend Date||Sep 29 2021|
|Dividend Pay Date||Oct 15 2021|
|Days until Ex dividend||4 days|
|Days until Dividend pay date||20 days|
Does AFCG pay a reliable dividends?See AFCG dividend history and benchmarks
Is AFC Gamma undervalued compared to its fair value and its price relative to the market?
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).
How is AFC Gamma forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
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
How has AFC Gamma performed over the past 5 years?
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.
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.
What is AFC Gamma current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Len Tannenbaum (50 yo)
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...
Experienced Management: AFCG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: AFCG's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.
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
Dilution of Shares: AFCG only recently listed within the past 12 months.
AFC Gamma, Inc.'s employee growth, exchange listings and data sources
- 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
- AFC Gamma, Inc.
- 525 Okeechobee Boulevard
- Suite 1770
- West Palm Beach
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/25 02:26|
|End of Day Share Price||2021/09/24 00:00|
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.