Finance Of Profitability Analysis

FOA Stock  USD 0.70  0.02  2.44%   
Considering the key profitability indicators obtained from Finance Of's historical financial statements, Finance of America may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in June. Profitability indicators assess Finance Of's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2010-12-31
Previous Quarter
-80.1 M
Current Value
-84.1 M
Quarterly Volatility
386.6 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Finance Of's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 1,302, whereas Operating Cash Flow Sales Ratio is projected to grow to (2.22). At present, Finance Of's Interest Income is projected to increase significantly based on the last few years of reporting. The current year's Change To Netincome is expected to grow to about 1.9 B, whereas Accumulated Other Comprehensive Income is projected to grow to (236.6 K).
For Finance Of profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Finance Of to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Finance of America utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Finance Of's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Finance of America over time as well as its relative position and ranking within its peers.
  
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Is Finance Of's industry 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 Finance Of. If investors know Finance 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 Finance Of listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.10)
Revenue Per Share
1.866
Quarterly Revenue Growth
(0.47)
Return On Assets
(0.01)
Return On Equity
(0.64)
The market value of Finance of America is measured differently than its book value, which is the value of Finance that is recorded on the company's balance sheet. Investors also form their own opinion of Finance Of's value that differs from its market value or its book value, called intrinsic value, which is Finance Of's 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 Finance Of's market value can be influenced by many factors that don't directly affect Finance Of's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Finance Of's value and its price as these two are different measures arrived at by different means. Investors typically determine if Finance Of is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Finance Of's 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.

Finance of America Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Finance Of's current stock value. Our valuation model uses many indicators to compare Finance Of value to that of its competitors to determine the firm's financial worth.
Finance of America is rated # 2 in return on equity category among related companies. It is rated # 3 in return on asset category among related companies . At present, Finance Of's Return On Equity is projected to slightly decrease based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value Finance Of by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Finance Of's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Finance Of's earnings, one of the primary drivers of an investment's value.

Finance Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Finance Of

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.64
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Finance Of

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0087
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Finance Return On Asset Comparison

Finance Of is currently under evaluation in return on asset category among related companies.

Finance Of Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Finance Of, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Finance Of will eventually generate negative long term returns. The profitability progress is the general direction of Finance Of's change in net profit over the period of time. It can combine multiple indicators of Finance Of, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-249 K-236.6 K
Interest Income1.5 B1.5 B
Operating Income-35.5 M-33.8 M
Income Before Tax-166.8 M-175.2 M
Net Loss-171.6 M-163 M
Net Loss-61.3 M-64.4 M
Income Tax Expense-593 K-622.6 K
Net Interest Income235.1 M124.3 M
Net Loss-776.3 M-815.1 M
Total Other Income Expense Net-131.3 M-137.9 M
Non Operating Income Net Other32.2 M28.7 M
Change To Netincome1.9 B1.9 B
Net Loss(0.98)(1.03)
Income Quality 1.17  1.23 
Net Income Per E B T 0.48  0.46 

Finance Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Finance Of. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Finance Of position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Finance Of's important profitability drivers and their relationship over time.

Finance Of Profitability Trends

Finance Of profitability trend refers to the progression of profit or loss within a business. An upward trend means that Finance Of's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Finance Of's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Finance Of Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Finance Of different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Finance Of in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Finance Of's future profitability.

Use Finance Of in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Finance Of position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Finance Of will appreciate offsetting losses from the drop in the long position's value.

Finance Of Pair Trading

Finance of America Pair Trading Analysis

The ability to find closely correlated positions to Finance Of could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Finance Of when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Finance Of - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Finance of America to buy it.
The correlation of Finance Of is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Finance Of moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Finance of America moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Finance Of can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Finance Of position

In addition to having Finance Of in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Finance of America offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Finance Of's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Finance Of America Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Finance Of America Stock:
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You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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When running Finance Of's price analysis, check to measure Finance Of's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Finance Of is operating at the current time. Most of Finance Of's value examination focuses on studying past and present price action to predict the probability of Finance Of's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Finance Of's price. Additionally, you may evaluate how the addition of Finance Of to your portfolios can decrease your overall portfolio volatility.
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To fully project Finance Of's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Finance of America at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Finance Of's income statement, its balance sheet, and the statement of cash flows.
Potential Finance Of investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Finance Of investors may work on each financial statement separately, they are all related. The changes in Finance Of's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Finance Of's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.