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LFT

Lument Finance TrustNYSE:LFT Stock Report

Market Cap

US$95.6m

7D

-3.3%

1Y

26.0%

Updated

01 Dec, 2021

Data

Company Financials +
LFT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends2/6

LFT Stock Overview

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate debt investments in the United States.

Lument Finance Trust Competitors

Annaly Capital Management

NYSE:NLY

US$11.7b

AGNC Investment

NasdaqGS:AGNC

US$8.0b

Starwood Property Trust

NYSE:STWD

US$7.2b

Blackstone Mortgage Trust

NYSE:BXMT

US$5.1b

Price History & Performance

Summary of all time highs, changes and price drops for Lument Finance Trust
Historical stock prices
Current Share PriceUS$3.83
52 Week HighUS$4.48
52 Week LowUS$2.96
Beta1.25
1 Month Change-4.25%
3 Month Change-7.49%
1 Year Change25.95%
3 Year Change11.66%
5 Year Change-28.41%
Change since IPO-73.59%

Recent News & Updates

Jun 14

Lument Finance Trust closes $1B commercial real estate CLO

buzbuzzer/E+ via Getty Images Lument Finance Trust (LFT) closes the $1B on-balance sheet commercial real estate collateralized loan obligation, known as LMNT 2021-FL1. It expects to redeem its two existing commercial real estate CLOs. ~$834M of investment grade notes were issued and sold to institutions, while a subsidiary of LFT retained subordinate interests of ~$166M. The securitization has a 30-month reinvestment period, and the initial collateral is ~$314M of capacity to acquire additional mortgage loans. "This transaction allows us to

Shareholder Returns

LFTUS Mortgage REITsUS Market
7D-3.3%-4.7%-2.8%
1Y26.0%11.1%20.0%

Return vs Industry: LFT exceeded the US Mortgage REITs industry which returned 11.1% over the past year.

Return vs Market: LFT exceeded the US Market which returned 20% over the past year.

Price Volatility

Is LFT's price volatile compared to industry and market?
LFT volatility
LFT Average Weekly Movement2.6%
Mortgage REITs Industry Average Movement2.7%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

Volatility Over Time: LFT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012n/aJim Flynnhttps://lumentfinancetrust.com

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate debt investments in the United States. It primarily invests in transitional floating rate commercial mortgage loans on middle market multi-family assets; and other commercial real estate, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other commercial real estate debt instruments. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code.

Lument Finance Trust Fundamentals Summary

How do Lument Finance Trust's earnings and revenue compare to its market cap?
LFT fundamental statistics
Market CapUS$95.55m
Earnings (TTM)US$7.40m
Revenue (TTM)US$19.59m

12.9x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LFT income statement (TTM)
RevenueUS$19.59m
Cost of RevenueUS$0
Gross ProfitUS$19.59m
ExpensesUS$12.19m
EarningsUS$7.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin100.00%
Net Profit Margin37.77%
Debt/Equity Ratio516.0%

How did LFT perform over the long term?

See historical performance and comparison

Dividends

9.4%

Current Dividend Yield

120%

Payout Ratio

Valuation

Is Lument Finance Trust undervalued compared to its fair value and its price relative to the market?

12.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LFT ($3.83) is trading above our estimate of fair value ($2.05)

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


Price To Earnings Ratio

PE vs Industry: LFT is poor value based on its PE Ratio (12.9x) compared to the US Mortgage REITs industry average (9.4x).

PE vs Market: LFT is good value based on its PE Ratio (12.9x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LFT is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: LFT's PB Ratio (0.9x) is in line with the US Mortgage REITs industry average.


Future Growth

How is Lument Finance Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

39.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LFT's forecast earnings growth (39.4% per year) is above the savings rate (2%).

Earnings vs Market: LFT's earnings (39.4% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: LFT's revenue (17.8% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: LFT's revenue (17.8% 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 LFT's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Lument Finance Trust performed over the past 5 years?

37.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LFT has high quality earnings.

Growing Profit Margin: LFT's current net profit margins (37.8%) are lower than last year (40.1%).


Past Earnings Growth Analysis

Earnings Trend: LFT has become profitable over the past 5 years, growing earnings by 37.8% per year.

Accelerating Growth: LFT's earnings growth over the past year (2.9%) is below its 5-year average (37.8% per year).

Earnings vs Industry: LFT earnings growth over the past year (2.9%) underperformed the Mortgage REITs industry 46.7%.


Return on Equity

High ROE: LFT's Return on Equity (5.5%) is considered low.


Financial Health

How is Lument Finance Trust's financial position?


Financial Position Analysis

Short Term Liabilities: LFT's short term assets ($1.0B) exceed its short term liabilities ($7.9M).

Long Term Liabilities: LFT's short term assets ($1.0B) exceed its long term liabilities ($873.0M).


Debt to Equity History and Analysis

Debt Level: LFT's net debt to equity ratio (490%) is considered high.

Reducing Debt: LFT's debt to equity ratio has reduced from 1436.3% to 516% over the past 5 years.

Debt Coverage: LFT's debt is not well covered by operating cash flow (1.8%).

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


Balance Sheet


Dividend

What is Lument Finance Trust current dividend yield, its reliability and sustainability?

9.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LFT's dividend (9.4%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: LFT's dividend (9.4%) is in the top 25% of dividend payers in the US market (3.63%)


Stability and Growth of Payments

Stable Dividend: LFT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LFT has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (119.7%), LFT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jim Flynn (44 yo)

3.83yrs

Tenure

Mr. James Flynn, also known as Jim, JD, has been the Chief Executive Officer of Lument Finance Trust, Inc. (formerly, Hunt Companies Finance Trust, Inc.) since January 18, 2018 and has been its Chairman si...


Leadership Team

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


Board Members

Experienced Board: LFT's board of directors are considered experienced (6.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lument Finance Trust, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Lument Finance Trust, Inc.
  • Ticker: LFT
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$95.550m
  • Shares outstanding: 24.95m
  • Website: https://lumentfinancetrust.com

Location

  • Lument Finance Trust, Inc.
  • 230 Park Avenue
  • 23rd Floor
  • New York
  • New York
  • 10169
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:10
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
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.