NasdaqCM:FPAY

Stock Analysis Report

Executive Summary

FlexShopper, Inc., through its wholly owned subsidiary, FlexShopper, LLC operates as an online lease-to-own (LTO) retailer and LTO payment solution provider.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has FlexShopper's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FPAY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.2%

FPAY

-0.3%

US Diversified Financial

0.06%

US Market


1 Year Return

255.4%

FPAY

11.2%

US Diversified Financial

19.4%

US Market

Return vs Industry: FPAY exceeded the US Diversified Financial industry which returned 11.2% over the past year.

Return vs Market: FPAY exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

FPAYIndustryMarket
7 Day-5.2%-0.3%0.06%
30 Day15.1%-1.3%1.1%
90 Day87.1%4.3%8.9%
1 Year255.4%255.4%11.4%11.2%21.9%19.4%
3 Year-42.0%-42.0%32.8%32.4%48.9%39.3%
5 Year-67.8%-67.8%49.7%49.0%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FPAY ($2.9) is trading below our estimate of fair value ($28.28)

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


Price To Earnings Ratio

PE vs Industry: FPAY is unprofitable, so we can't compare its PE Ratio to the Diversified Financial industry average.

PE vs Market: FPAY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FPAY has negative assets, so we can't compare its PB Ratio to the US Diversified Financial industry average.


Next Steps

Future Growth

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

162.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPAY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

High Growth Earnings: FPAY's is expected to become profitable in the next 3 years.

Revenue vs Market: FPAY's revenue (19.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FPAY's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has FlexShopper performed over the past 5 years?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FPAY is currently unprofitable.

Growing Profit Margin: FPAY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FPAY is unprofitable, and losses have increased over the past 5 years at a rate of -8.5% per year.

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

Earnings vs Industry: FPAY is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (38%).


Return on Equity

High ROE: FPAY has a negative Return on Equity (-8.48%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FlexShopper's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FPAY has a high level of physical assets or inventory.

Debt Coverage by Assets: FPAY's debt is covered by short term assets (assets are 1.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FPAY has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FPAY has less than a year of cash runway if free cash flow continues to reduce at historical rates of -23.7% each year


Financial Institutions Analysis

Asset Level: FPAY's level of assets compared to its equity is low.

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

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

Loan Level: Insufficient data to determine if FPAY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FPAY has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

What is FlexShopper's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if FPAY'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 FPAY'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?

4.2yrs

Average management tenure


CEO

Richard House (55yo)

0.3yrs

Tenure

Mr. Richard R. House, Jr. has been Chief Executive Officer of FlexShopper, Inc. since October 7, 2019. Mr. House served as the President of Atlanticus Holdings Corporation (Formerly, CompuCredit Corp.) fro ...


Leadership Team

NamePositionTenureCompensationOwnership
Brad Bernstein
Co-Founder13.1yrsUS$453.35k1.62% $964.1k
Harold Heiser
Chief Financial Officer4.2yrsUS$347.55k4.04% $2.4m
Ravi Radhakrishnan
Chief Risk Officer4yrsUS$317.55k0.88% $524.7k
Richard House
Chief Executive Officer0.3yrsno datano data
Frank Matasavage
Controller6.1yrsUS$149.22kno data

4.2yrs

Average Tenure

54yo

Average Age

Experienced Management: FPAY's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brad Bernstein
Co-Founder13.1yrsUS$453.35k1.62% $964.1k
T. King
Independent Director5.3yrsUS$49.21k1.47% $876.7k
Carl Pradelli
Independent Director5.6yrsUS$49.21k0.66% $391.5k
James Allen
Independent Director4yrsUS$50.93k0.74% $438.3k
Howard Dvorkin
Chairman of the Board0yrsno data0.0084% $5.0k
Sean Hinze
Independent Director1.3yrsno datano data

5.3yrs

Average Tenure

54yo

Average Age

Experienced Board: FPAY's board of directors are considered experienced (5.3 years average tenure).


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 been substantially diluted in the past year, with total shares outstanding growing by 222.5%.


Top Shareholders

Company Information

FlexShopper, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FlexShopper, Inc.
  • Ticker: FPAY
  • Exchange: NasdaqCM
  • Founded: 2003
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: US$59.507m
  • Shares outstanding: 21.10m
  • Website: https://www.flexshopper.com

Number of Employees


Location

  • FlexShopper, Inc.
  • 901 Yamato Road
  • Suite 260
  • Boca Raton
  • Florida
  • 33431
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FPAYNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2007

Biography

FlexShopper, Inc., through its wholly owned subsidiary, FlexShopper, LLC operates as an online lease-to-own (LTO) retailer and LTO payment solution provider. The company provides residential furniture, consumer electronics, computers, appliances, household accessories, and various other durable goods to consumers on a LTO basis to consumers of third-party retailers and e-tailers. It offers products through FlexShopper.com, an LTO e-commerce marketplace; e-commerce sites and in-store terminals by utilizing FlexShopper’s patented LTO payment method; and facilitation of LTO transactions with retailers. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is based in Boca Raton, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:47
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.