Affirm Fundamental analysis

Affirm Holdings (AFRM) Fundamental Analysis:

1. Financial Performance:
   • Affirm Holdings reported a net income of $2.8 million and total revenue of $783.14 million for the latest report period ending on March 31, 2025. The company's diluted EPS was $0.01, which represents a significant year-over-year growth of 102.33%.
   • The 3-year CAGR for net income is -14.45%, indicating a decline over the period, while the 3-year CAGR for revenue is 31.21%, showing a strong growth trajectory. The diluted EPS CAGR over the same period is -18.43%, suggesting a challenging period for earnings growth.

2. Profitability and Efficiency:
   • Affirm's P/E ratio is not available, but the P/S ratio is 5.81, indicating that the stock is trading at a premium relative to its sales. The P/B ratio is 5.83, suggesting that the market is valuing the company's equity at a premium compared to its book value.
   • The company's free cash flow stands at $157.38 million, with operating cash flow at $210.39 million and financing cash flow at -$245.55 million. Investing cash flow is $35.52 million, indicating that the company is actively investing in its business.

3. Stock Valuation and Analyst Sentiment:
   • The average analyst price target for Affirm is $61, with a consensus rating of "Strong Buy". This indicates that analysts are optimistic about the company's future performance.
   • RBC Capital has reaffirmed its "Sector Perform" rating for Affirm, with a price target of $70. Truist Securities has initiated coverage with a "Buy" recommendation, and there is a steady sentiment from analysts.
4. Technical Indicators and Market Sentiment:
   • Affirm's stock has moved above its 200-day simple moving average, which is often seen as a bullish signal. The stock is trading at a 34.2% discount from its 52-week high, suggesting potential for upside.
   • The stock's recent price increase of 4.41% to approximately $51.48 indicates positive momentum. The options market shows moderate activity, with calls outnumbering puts, suggesting a bullish outlook.

In conclusion, Affirm Holdings has shown strong revenue growth and a significant increase in diluted EPS. Despite a decline in net income over the 3-year CAGR, the company's recent financials and analyst ratings suggest optimism. The technical indicators and market sentiment also point to a positive outlook for the stock.