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Market Cap

US$31.7b

Last Updated

2021/09/16 22:58 UTC

Data Sources

Company Financials +

Executive Summary

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. More Details


Snowflake Analysis

Limited growth with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AFRM is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: AFRM's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

27.7%

AFRM

-0.8%

US IT

-0.6%

US Market


1 Year Return

n/a

AFRM

26.4%

US IT

33.6%

US Market

Return vs Industry: Insufficient data to determine how AFRM performed against the US IT industry.

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


Shareholder returns

AFRMIndustryMarket
7 Day27.7%-0.8%-0.6%
30 Day85.2%0.7%1.3%
90 Day72.5%2.2%5.3%
1 Yearn/a27.5%26.4%35.6%33.6%
3 Yearn/a80.6%74.9%60.9%51.0%
5 Yearn/a203.3%182.5%123.4%99.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AFRM ($117.58) is trading above our estimate of fair value ($18.7)

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


Price To Earnings Ratio

PE vs Industry: AFRM is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: AFRM 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 AFRM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AFRM is overvalued based on its PB Ratio (12.3x) compared to the US IT industry average (5.5x).


Future Growth

How is Affirm Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

44.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFRM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AFRM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AFRM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AFRM's revenue (29.5% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: AFRM's revenue (29.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFRM is forecast to be unprofitable in 3 years.


Past Performance

How has Affirm Holdings performed over the past 5 years?

-242.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AFRM is currently unprofitable.

Growing Profit Margin: AFRM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AFRM's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: AFRM is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (28%).


Return on Equity

High ROE: AFRM has a negative Return on Equity (-16.69%), as it is currently unprofitable.


Financial Health

How is Affirm Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AFRM's short term assets ($1.8B) exceed its short term liabilities ($378.5M).

Long Term Liabilities: AFRM's short term assets ($1.8B) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: AFRM's debt to equity ratio (73.9%) is considered high.

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


Balance Sheet


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: AFRM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AFRM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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


Dividend Yield vs Market

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

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

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

2.8yrs

Average management tenure


CEO

Max Levchin (45 yo)

9.67yrs

Tenure

US$10,000

Compensation

Mr. Max Roth Levchin serves as Founder, President, Chairman & CEO at Hard Valuable Fun. He founded Affirm, Inc. in 2013 and serves as its Chief Executive Officer & Director. He is a Founder of Affirm Holdi...


CEO Compensation Analysis

Compensation vs Market: Max's total compensation ($USD10.00K) is below average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Insufficient data to compare Max's compensation with company performance.


Leadership Team

Experienced Management: AFRM's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: AFRM's board of directors are considered experienced (7.7 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: AFRM only recently listed within the past 12 months.


Top Shareholders

Company Information

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


Key Information

  • Name: Affirm Holdings, Inc.
  • Ticker: AFRM
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$31.671b
  • Shares outstanding: 269.36m
  • Website: https://www.affirm.com

Number of Employees


Location

  • Affirm Holdings, Inc.
  • 650 California Street
  • San Francisco
  • California
  • 94108-2716
  • United States

Listings


Biography

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The company’s platform includes point-of-sale payment solution for consumers, merchant comme...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:58
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.