-1.66%
-8.17%
41.30%
136.98%
46.98%
6.23%
-37.20%
AI Spotlight on AFRM
Company Description
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 commerce solutions, and a consumer-focused app.
Its payments network and partnership with an originating bank, enables consumers to pay for a purchase over time with terms ranging from one to forty-eight months.As of June 30, 2021, the company had approximately 29,000 merchants integrated on its platform covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies.Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel, apparel, accessories, consumer electronics, and jewelry.
The company was founded in 2012 and is headquartered in San Francisco, California.
Market Data
| Last Price | 61.07 |
| Change Percentage | -1.66% |
| Open | 62.73 |
| Previous Close | 62.1 |
| Market Cap ( Millions) | 19179 |
| Volume | 4218854 |
| Year High | 73.34 |
| Year Low | 22.25 |
| M A 50 | 63.74 |
| M A 200 | 42.54 |
Financial Ratios
| FCF Yield | 1.98% |
| Dividend Yield | 0.00% |
| ROE | -16.49% |
| Debt / Equity | 251.09% |
| Net Debt / EBIDTA | -183997.27% |
| Price To Book | 6.85 |
| Price Earnings Ratio | -43.56 |
| Price To FCF | 50.41 |
| Price To sales | 7.6 |
| EV / EBITDA | -7650.15 |
News
- Jan -30 - Earnings Preview: Affirm Holdings (AFRM) Q2 Earnings Expected to Decline
- Jan -24 - Affirm: New Capital Partnership Will Boost Access to Flexible Payment Options
- Jan -24 - Affirm Surges on $750 Million Liberty Mutual Deal, Eyes $34 Billion Lending Target for 2025
- Jan -24 - Liberty Mutual Investments Expands Capital Partnership with Affirm
- Jan -24 - Affirm Gets Big Financing Check From Liberty Mutual
- Jan -24 - Affirm Holdings (AFRM) Laps the Stock Market: Here's Why
- Jan -17 - Affirm Holdings (AFRM) Stock Sinks As Market Gains: Here's Why
- Jan -17 - Does Affirm's Expansionary Moves Make it a Smart Buy for Now?
- Jan -16 - Affirm to Announce Second Quarter Fiscal Year 2025 Results on February 6, 2025
- Jan -15 - ValuEngine's Top 10 Stocks For 2025
- Jan -13 - Affirm Holdings (AFRM) Stock Falls Amid Market Uptick: What Investors Need to Know
- Jan -10 - Investors Heavily Search Affirm Holdings, Inc. (AFRM): Here is What You Need to Know
- Jan -09 - New Strong Buy Stocks for January 9th
- Jan -08 - Should You Buy Affirm Stock Today?
- Jan -08 - Affirm: Big Bull For 2025
- Dec -23 - Affirm Holdings (AFRM) Stock Drops Despite Market Gains: Important Facts to Note
- Dec -23 - Why is Affirm's Extended Partnership With WooCommerce Crucial?
- Dec -23 - Where Will Affirm Stock Be in 3 Years?
- Dec -20 - Can Affirm & Adyen Unlock New Growth With Enhanced BNPL Offerings?
- Dec -20 - The Big 3: AMZN, AFRM, UPST
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Interest
Expected Growth : 19.3 %
What the company do ?
Affirm Holdings, Inc. offers consumer financing solutions, providing transparent and consumer-friendly payment options for online purchases, with interest rates ranging from 10-30% APR.
Why we expect these perspectives ?
Affirm Holdings, Inc.'s 19.3% interest growth is driven by increasing adoption of buy-now-pay-later (BNPL) solutions, expansion into new merchant partnerships, and rising consumer demand for flexible payment options. Additionally, the company's focus on transparency, fairness, and consumer-friendly practices has contributed to its growing popularity, leading to increased interest income.
Segment n°2 -> Merchant Network
Expected Growth : 21.67 %
What the company do ?
Merchant Network from Affirm Holdings, Inc. is a platform that connects merchants with consumers, enabling seamless point-of-sale financing for online and offline purchases.
Why we expect these perspectives ?
Affirm Holdings' Merchant Network growth of 21.67% is driven by increasing adoption of 'buy now, pay later' solutions, expansion into new merchant categories, and strategic partnerships. Additionally, the rise of e-commerce and growing consumer preference for flexible payment options contribute to the segment's growth.
Segment n°3 -> Gain on Sales of Loans
Expected Growth : 22.95 %
What the company do ?
Gain on sales of loans from Affirm Holdings, Inc. refers to the profit earned by selling loans to investors, calculated by subtracting the net proceeds from the carrying value of the loans.
Why we expect these perspectives ?
The 22.95% gain on sales of loans from Affirm Holdings, Inc. is driven by increasing adoption of buy-now-pay-later solutions, expansion into new merchant partnerships, and growth in point-of-sale payment volumes. Additionally, Affirm's focus on consumer-friendly financing options and its ability to provide transparent and flexible repayment terms have contributed to its rapid growth.
Segment n°4 -> Card Network
Expected Growth : 10.88 %
What the company do ?
Card Network from Affirm Holdings, Inc. is a payment network that enables consumers to pay for purchases over time with transparent, consumer-friendly financing options.
Why we expect these perspectives ?
Affirm Holdings' Card Network growth of 10.88% is driven by increasing adoption of buy-now-pay-later (BNPL) solutions, expansion into new merchant partnerships, and rising consumer demand for flexible payment options. Additionally, the company's focus on transparency, consumer-friendly terms, and seamless user experience contribute to its growth momentum.
Segment n°5 -> Servicing
Expected Growth : 12.8 %
What the company do ?
Servicing from Affirm Holdings, Inc. refers to the management and maintenance of loans originated through Affirm's platform, ensuring timely repayment and customer support.
Why we expect these perspectives ?
Affirm Holdings' 12.8% growth in servicing is driven by increasing adoption of 'buy now, pay later' solutions, expansion into new merchant partnerships, and rising consumer demand for flexible payment options. Additionally, Affirm's technology-driven platform and data-driven approach to underwriting have enabled the company to efficiently scale its servicing capabilities, further contributing to its growth.
Affirm Holdings, Inc. Products
| Product Range | What is it ? |
|---|---|
| Point of Sale (POS) Financing | Affirm offers point-of-sale financing solutions that allow consumers to pay for purchases over time, providing a seamless and transparent financing experience. |
| Virtual Card | Affirm's Virtual Card is a digital payment method that allows consumers to pay for online purchases in installments, providing a convenient and flexible payment option. |
| Debit Card | Affirm's Debit Card is a debit card that allows consumers to earn rewards and cashback on their purchases, while also providing access to Affirm's financing options. |
| Savings Account | Affirm's Savings Account is a high-yield savings account that allows consumers to earn interest on their deposits, with no fees or minimums. |
Affirm Holdings, Inc.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Affirm Holdings, Inc. is medium because while there are some alternative financing options available, Affirm's point-of-sale financing solutions are still relatively unique and convenient for consumers.
Bargaining Power Of Customers
The bargaining power of customers is low because individual consumers have limited negotiating power when it comes to financing options, and Affirm's partnerships with merchants give it an advantage in terms of pricing and terms.
Bargaining Power Of Suppliers
The bargaining power of suppliers is low because Affirm is not heavily reliant on a single supplier, and its technology platform allows it to maintain control over its supply chain and operations.
Threat Of New Entrants
The threat of new entrants is high because the fintech industry is rapidly evolving, and new companies are emerging with innovative financing solutions that could potentially compete with Affirm's offerings.
Intensity Of Rivalry
The intensity of rivalry is medium because while there are some established players in the point-of-sale financing market, Affirm's strong partnerships and technology platform give it a competitive advantage, but it still faces competition from other fintech companies.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 69.11% |
| Debt Cost | 3.95% |
| Equity Weight | 30.89% |
| Equity Cost | 21.78% |
| WACC | 9.45% |
| Leverage | 223.73% |
Affirm Holdings, Inc. : Quality Control
Affirm Holdings, Inc. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| HOOD | Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company also offers … |
| TOST | Toast, Inc. operates a cloud-based and digital technology platform for the restaurant industry in the United States and Ireland. The company offers Toast Point of Sale (POS), a hardware product; … |
| HCP | HashiCorp, Inc. provides multi-cloud infrastructure automation solutions worldwide. The company offers Terraform, an infrastructure provisioning product that applies an Infrastructure-as-Code approach, where processes and configuration required to support applications are … |
| DOCN | DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. Its platform provides on-demand infrastructure and platform tools for developers, start-ups, and … |
| ALTR | Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics, and artificial intelligence worldwide. The company operates in two … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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