AFC Gamma, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is AFC Gamma, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 8.17%

With a growth in Net Sales of 6.4%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At USD 5.82 MM has Grown at 285.56%
NET PROFIT(Q) At USD 5.36 MM has Grown at 272.14%

With ROE of -11.29%, it has a risky valuation with a 0.36 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.24%, its profits have fallen by -219.3%

High Institutional Holdings at 41.73%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.57% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.24% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AFC Gamma, Inc. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is AFC Gamma, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

AFC Gamma, Inc.

-8.03%

-0.91

62.14%

S&P 500

19.47%

1.54

13.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

41.10%

EBIT Growth (5y)

13.43%

EBIT to Interest (avg)

7.21

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

1.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

38.16%

ROCE (avg)

15.62%

ROE (avg)

8.17%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.36

EV to EBIT

2.68

EV to EBITDA

2.68

EV to Capital Employed

0.18

EV to Sales

0.77

PEG Ratio

Dividend Yield

ROCE (Latest)

6.53%

ROE (Latest)

-11.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

PRE-TAX PROFIT(Q)

At USD 5.82 MM has Grown at 285.56%

NET PROFIT(Q)

At USD 5.36 MM has Grown at 272.14%

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 11.53% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 53.43 %

DIVIDEND PER SHARE(HY)

Lowest at USD 20.22

INTEREST(Q)

Highest at USD 1.92 MM

Here's what is working for AFC Gamma, Inc.

Pre-Tax Profit

At USD 5.82 MM has Grown at 285.56%

over average net sales of the previous four periods of USD -3.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 5.36 MM has Grown at 272.14%

over average net sales of the previous four periods of USD -3.11 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Here's what is not working for AFC Gamma, Inc.

Interest

At USD 1.92 MM has Grown at 11.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 1.92 MM

in the last five periods and Increased by 11.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 53.43 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at USD 20.22

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 11.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales