Is Affirm Holdings Stock a Good Investment?
Affirm Holdings Investment Advice | AFRM |
- Examine Affirm Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Affirm Holdings' leadership team and their track record. Good management can help Affirm Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Data Processing & Outsourced Services space and any emerging trends that could impact Affirm Holdings' business and its evolving consumer preferences.
- Compare Affirm Holdings' performance and market position to its competitors. Analyze how Affirm Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if Affirm Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Affirm Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Affirm Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Affirm Holdings is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Affirm Holdings Stock
Researching Affirm Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 79.0% of the company shares are held by institutions such as insurance companies. The book value of Affirm Holdings was presently reported as 8.82. The company has Price/Earnings To Growth (PEG) ratio of 0.17. Affirm Holdings recorded a loss per share of 0.62. The entity had not issued any dividends in recent years.
To determine if Affirm Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Affirm Holdings' research are outlined below:
| Affirm Holdings generated a negative expected return over the last 90 days | |
| Affirm Holdings has high historical volatility and very poor performance | |
| Affirm Holdings has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 2.32 B. Net Loss for the year was (517.76 M) with profit before overhead, payroll, taxes, and interest of 1.24 B. | |
| Affirm Holdings has a poor financial position based on the latest SEC disclosures | |
| Over 79.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: California Public Employees Retirement System Raises Stake in Affirm Holdings, Inc. |
Affirm Holdings Quarterly Cash And Short Term Investments |
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Affirm Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Affirm Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Affirm Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of August 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Affirm Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Affirm Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-11-07 | 2024-09-30 | -0.35 | -0.31 | 0.04 | 11 | ||
2023-02-08 | 2022-12-31 | -0.98 | -1.1 | -0.12 | 12 | ||
2023-11-08 | 2023-09-30 | -0.7 | -0.57 | 0.13 | 18 | ||
2023-08-24 | 2023-06-30 | -0.85 | -0.69 | 0.16 | 18 | ||
2024-02-08 | 2023-12-31 | -0.72 | -0.54 | 0.18 | 25 | ||
2021-09-09 | 2021-06-30 | -0.29 | -0.48 | -0.19 | 65 | ||
2023-05-09 | 2023-03-31 | -0.92 | -0.69 | 0.23 | 25 | ||
2022-02-10 | 2021-12-31 | -0.34 | -0.57 | -0.23 | 67 |
Affirm Holdings Target Price Consensus
Affirm target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Affirm Holdings' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 20 | Buy |
Most Affirm analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Affirm stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Affirm Holdings, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationAffirm Holdings Target Price Projection
Affirm Holdings' current and average target prices are 37.23 and 62.27, respectively. The current price of Affirm Holdings is the price at which Affirm Holdings is currently trading. On the other hand, Affirm Holdings' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Affirm Holdings Market Quote on 9th of April 2025
Target Price
Analyst Consensus On Affirm Holdings Target Price
Affirm Holdings Analyst Ratings
Affirm Holdings' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Affirm Holdings stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Affirm Holdings' financials, market performance, and future outlook by experienced professionals. Affirm Holdings' historical ratings below, therefore, can serve as a valuable tool for investors.Know Affirm Holdings' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Affirm Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Affirm Holdings backward and forwards among themselves. Affirm Holdings' institutional investor refers to the entity that pools money to purchase Affirm Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | D. E. Shaw & Co Lp | 2024-12-31 | 3.1 M | Coatue Management Llc | 2024-12-31 | 2.6 M | Norges Bank | 2024-12-31 | 2.3 M | Charles Schwab Investment Management Inc | 2024-12-31 | 2.3 M | Marshall Wace Asset Management Ltd | 2024-12-31 | 2.3 M | Abdiel Capital Advisors Llc | 2024-12-31 | 2.1 M | T. Rowe Price Associates, Inc. | 2024-12-31 | 1.9 M | Qube Research & Technologies | 2024-12-31 | 1.8 M | Jpmorgan Chase & Co | 2024-12-31 | 1.7 M | Capital Research Global Investors | 2024-12-31 | 24.3 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 23.3 M |
Affirm Holdings' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 11.44 B.Market Cap |
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Affirm Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.05) | (0.05) | |
| Return On Capital Employed | (0.08) | (0.08) | |
| Return On Assets | (0.05) | (0.05) | |
| Return On Equity | (0.22) | (0.21) |
Determining Affirm Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if Affirm Holdings is a good buy. For example, gross profit margin measures Affirm Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Affirm Holdings' profitability and make more informed investment decisions.
Affirm Holdings' Earnings Breakdown by Geography
Evaluate Affirm Holdings' management efficiency
Affirm Holdings has return on total asset (ROA) of (0.0234) % which means that it has lost $0.0234 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0734) %, meaning that it created substantial loss on money invested by shareholders. Affirm Holdings' management efficiency ratios could be used to measure how well Affirm Holdings manages its routine affairs as well as how well it operates its assets and liabilities. As of the 9th of April 2025, Return On Tangible Assets is likely to drop to -0.05. In addition to that, Return On Capital Employed is likely to drop to -0.08. At this time, Affirm Holdings' Non Current Assets Total are very stable compared to the past year. As of the 9th of April 2025, Non Currrent Assets Other is likely to grow to about 1.5 B, while Net Tangible Assets are likely to drop about 1.2 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 7.94 | 5.41 | |
| Tangible Book Value Per Share | 6.35 | 4.12 | |
| Enterprise Value Over EBITDA | -7.7 K | -7.3 K | |
| Price Book Value Ratio | 3.04 | 3.20 | |
| Enterprise Value Multiple | -7.7 K | -7.3 K | |
| Price Fair Value | 3.04 | 3.20 | |
| Enterprise Value | 13.4 B | 8.6 B |
The strategic initiatives led by Affirm Holdings' management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Beta 3.686 |
Basic technical analysis of Affirm Stock
As of the 9th of April, Affirm Holdings shows the risk adjusted performance of (0.11), and Mean Deviation of 4.03. Affirm Holdings technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Affirm Holdings market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Affirm Holdings is priced correctly, providing market reflects its regular price of 37.23 per share. Given that Affirm Holdings has information ratio of (0.07), we suggest you to validate Affirm Holdings's prevailing market performance to make sure the company can sustain itself at a future point.Affirm Holdings' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Affirm Holdings insiders, such as employees or executives, is commonly permitted as long as it does not rely on Affirm Holdings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Affirm Holdings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Affirm Holdings' Outstanding Corporate Bonds
Affirm Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Affirm Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Affirm bonds can be classified according to their maturity, which is the date when Affirm Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US008252AP33 Corp BondUS008252AP33 | View | |
| US008252AN84 Corp BondUS008252AN84 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Affirm Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Affirm Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.68) | |||
| Mean Deviation | 4.03 | |||
| Coefficient Of Variation | (980.18) | |||
| Standard Deviation | 5.62 | |||
| Variance | 31.6 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.43) | |||
| Total Risk Alpha | 0.2772 | |||
| Treynor Ratio | (0.69) | |||
| Maximum Drawdown | 40.33 | |||
| Value At Risk | (8.88) | |||
| Potential Upside | 6.38 | |||
| Skewness | 0.3977 | |||
| Kurtosis | 3.89 |
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.68) | |||
| Mean Deviation | 4.03 | |||
| Coefficient Of Variation | (980.18) | |||
| Standard Deviation | 5.62 | |||
| Variance | 31.6 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.43) | |||
| Total Risk Alpha | 0.2772 | |||
| Treynor Ratio | (0.69) | |||
| Maximum Drawdown | 40.33 | |||
| Value At Risk | (8.88) | |||
| Potential Upside | 6.38 | |||
| Skewness | 0.3977 | |||
| Kurtosis | 3.89 |
Consider Affirm Holdings' intraday indicators
Affirm Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Affirm Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Affirm Holdings Corporate Filings
F4 | 3rd of April 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 17th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
ASR | 28th of February 2025 Automatic Shelf Registration Statement under Rule 415 filed with the U.S. Securities and Exchange Commission (SEC) | ViewVerify |
| 3rd of February 2025 Other Reports | ViewVerify |
Affirm Stock media impact
Far too much social signal, news, headlines, and media speculation about Affirm Holdings that are available to investors today. That information is available publicly through Affirm media outlets and privately through word of mouth or via Affirm internal channels. However, regardless of the origin, that massive amount of Affirm data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Affirm Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Affirm Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Affirm Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Affirm Holdings alpha.
Affirm Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Affirm Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Affirm Holdings Historical Investor Sentiment
Investor biases related to Affirm Holdings' public news can be used to forecast risks associated with an investment in Affirm. The trend in average sentiment can be used to explain how an investor holding Affirm can time the market purely based on public headlines and social activities around Affirm Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Affirm Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Affirm Holdings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Affirm Holdings news discussions. The higher the estimate score, the more favorable the investor's outlook on Affirm Holdings.
Affirm Holdings Maximum Pain Price Across June 20th 2025 Option Contracts
Affirm Holdings' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Affirm Holdings close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Affirm Holdings' options.
Affirm Holdings Corporate Management
| Ronald Clark | VP Relations | Profile | |
| Robert OHare | Senior Finance | Profile | |
| Geoff Kott | Chief Officer | Profile | |
| Pat Suh | Senior Revenue | Profile | |
| Michael Linford | Chief Officer | Profile | |
| CFA CFA | Head Relations | Profile | |
| Eduardo Vilar | VP Solutions | Profile |
Already Invested in Affirm Holdings?
The danger of trading Affirm Holdings is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Affirm Holdings is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Affirm Holdings. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Affirm Holdings is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Affirm Holdings is a strong investment it is important to analyze Affirm Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Affirm Holdings' future performance. For an informed investment choice regarding Affirm Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Affirm Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Affirm Stock, please use our How to Invest in Affirm Holdings guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Is Data Processing & Outsourced Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Affirm Holdings. If investors know Affirm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Affirm Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.62) | Revenue Per Share | Quarterly Revenue Growth 0.466 | Return On Assets | Return On Equity |
The market value of Affirm Holdings is measured differently than its book value, which is the value of Affirm that is recorded on the company's balance sheet. Investors also form their own opinion of Affirm Holdings' value that differs from its market value or its book value, called intrinsic value, which is Affirm Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Affirm Holdings' market value can be influenced by many factors that don't directly affect Affirm Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Affirm Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Affirm Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Affirm Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.