NasdaqCM:CFFA

Stock Analysis Report

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Executive Summary

CF Finance Acquisition Corp. intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. More Details


Snowflake Analysis

Poor track record with worrying balance sheet.

Share Price & News

How has CF Finance Acquisition's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CFFA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CFFA

1.6%

US Capital Markets

1.3%

US Market


1 Year Return

3.1%

CFFA

7.6%

US Capital Markets

15.8%

US Market

Return vs Industry: CFFA underperformed the US Capital Markets industry which returned 7.6% over the past year.

Return vs Market: CFFA underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

CFFAIndustryMarket
7 Day0%1.6%1.3%
30 Day1.0%-4.5%-4.1%
90 Day-3.2%2.2%8.4%
1 Year3.1%3.1%10.3%7.6%18.4%15.8%
3 Yearn/a18.5%9.4%38.2%29.0%
5 Yearn/a70.7%48.9%84.9%64.0%

Price Volatility Vs. Market

How volatile is CF Finance Acquisition's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CF Finance Acquisition undervalued compared to its fair value and its price relative to the market?

166.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CFFA ($10.45) is trading above our estimate of fair value ($1.15)

Significantly Below Fair Value: CFFA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CFFA is poor value based on its PE Ratio (166.7x) compared to the US Capital Markets industry average (22.4x).

PE vs Market: CFFA is poor value based on its PE Ratio (166.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CFFA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CFFA is overvalued based on its PB Ratio (73.8x) compared to the US Capital Markets industry average (4.1x).


Next Steps

Future Growth

How is CF Finance Acquisition forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.1%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CF Finance Acquisition has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CF Finance Acquisition performed over the past 5 years?

60.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFFA has a high level of non-cash earnings.

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


Past Earnings Growth Analysis

Earnings Trend: CFFA's earnings have grown significantly by 60.9% per year over the past 5 years.

Accelerating Growth: CFFA's earnings growth over the past year (1.6%) is below its 5-year average (60.9% per year).

Earnings vs Industry: CFFA earnings growth over the past year (1.6%) underperformed the Capital Markets industry 6.1%.


Return on Equity

High ROE: Whilst CFFA's Return on Equity (45.01%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is CF Finance Acquisition's financial position?


Financial Position Analysis

Short Term Liabilities: CFFA's short term assets ($2.0M) exceed its short term liabilities ($1.4M).

Long Term Liabilities: CFFA's short term assets ($2.0M) do not cover its long term liabilities ($282.2M).


Debt to Equity History and Analysis

Debt Level: CFFA's debt to equity ratio (115.6%) is considered high.

Reducing Debt: Insufficient data to determine if CFFA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CFFA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CFFA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is CF Finance Acquisition current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CFFA'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 CFFA's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend 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 CFFA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Howard Lutnick (58 yo)

4.92yrs

Tenure

Mr. Howard W. Lutnick has been Chairman and Chief Executive Officer at CF Finance Acquisition Corp. II since September 2019. Mr. Lutnick joined Cantor Fitzgerald L.P. in 1983 and has served as President an ...


Leadership Team

NamePositionTenureCompensationOwnership
Howard Lutnick
Chairman & CEO4.92yrsno datano data
Anshuman Jain
President & Director1.75yrsno datano data
Paul Pion
CFO & Director0.25yrno datano data
Stephen Merkel
Executive VP4.92yrsno datano data

3.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: CFFA's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Lutnick
Chairman & CEO4.92yrsno datano data
Anshuman Jain
President & Director1.75yrsno datano data
Paul Pion
CFO & Director0.25yrno datano data
Robert Sharp
Independent Director1.5yrsno datano data
Robert Hochberg
Independent Director0.67yrno datano data
Peter Worth
Independent Director1.75yrsno data0.028%
$ 104.5k

1.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CFFA's board of directors are not considered experienced ( 1.6 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

CF Finance Acquisition Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CF Finance Acquisition Corp.
  • Ticker: CFFA
  • Exchange: NasdaqCM
  • Founded: 2014
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$369.191m
  • Shares outstanding: 35.33m

Location

  • CF Finance Acquisition Corp.
  • 110 East 59th Street
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFFA.UNasdaqCM (Nasdaq Capital Market)UnitsUSUSDDec 2018
CFFANasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDJan 2019

Biography

CF Finance Acquisition Corp. intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 00:39
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.