(AFRM) Affirm Holdings - NASDAQ
Sector: Financial Services | Industry: Credit Services | Exchange: NASDAQ (USA) | Market Cap: 24.079m USD | Total Return: 19.8% in 12m
Avg Turnover: 332M
Qual. Beats: 0
Rev. Trend: 99.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Affirm Holdings, Inc. operates a global digital payment platform specializing in point-of-sale financing and merchant commerce solutions. Headquartered in San Francisco, the company facilitates Buy Now, Pay Later (BNPL) transactions through a network of originating banks and capital market partners, allowing consumers to amortize purchases over fixed terms. Its merchant base spans diverse sectors, including electronics, travel, and general merchandise, across both physical and digital storefronts.
The BNPL business model primarily generates revenue through merchant discount rates and interest income from consumer loans. Unlike traditional credit cards, these services often provide transparent, non-compounding interest structures, which has increased their adoption among younger demographic cohorts seeking alternatives to revolving debt. Investors can further analyze these structural trends and risk profiles on ValueRay.
Affirm’s infrastructure integrates directly into checkout flows for small businesses and large enterprises alike. By utilizing proprietary data for credit underwriting, the platform aims to increase conversion rates and average order values for its retail partners while managing credit risk across its loan portfolio.
- Interest rate fluctuations impact funding costs and loan securitization profitability
- Gross merchandise volume growth depends on major e-commerce merchant partnerships
- Credit performance and delinquency rates dictate provision for loan losses
- Expansion of Affirm Card drives consumer engagement and transaction frequency
- Federal regulatory oversight of buy-now-pay-later lending affects compliance costs
| Net Income: 382.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 1.79 > 1.0 |
| NWC/Revenue: 63.96% < 20% (prev 297.2%; Δ -233.2% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.01b > Net Income 382.4m |
| Net Debt (6.13b) to EBITDA (1.12b): 5.49 < 3 |
| Current Ratio: 15.82 > 1.5 & < 3 |
| Outstanding Shares: last quarter (348.1m) vs 12m ago 1.13% < -2% |
| Gross Margin: 67.71% > 18% (prev 67.48%; Δ 0.24% > 0.5%) |
| Asset Turnover: 33.69% > 50% (prev 28.81%; Δ 4.87% > 0%) |
| Interest Coverage Ratio: 1.90 > 6 (EBIT TTM 836.6m / Interest Expense TTM 441.4m) |
| A: 0.19 (Total Current Assets 2.71b - Total Current Liabilities 171.4m) / Total Assets 13.1b |
| B: -0.21 (Retained Earnings -2.74b / Total Assets 13.1b) |
| C: 0.07 (EBIT TTM 836.6m / Avg Total Assets 11.8b) |
| D: 0.40 (Book Value of Equity 3.78b / Total Liabilities 9.36b) |
| Altman-Z'' = 1.49 = BB |
| DSRI: 0.10 (Receivables 230.7m/6.49b, Revenue 3.97b/3.01b) |
| GMI: 1.00 (GM 67.48% / 67.71%) |
| AQI: 9.80 (AQ_t 0.74 / AQ_t-1 0.08) |
| SGI: 1.32 (Revenue 3.97b / 3.01b) |
| TATA: -0.05 (NI 382.4m - CFO 1.01b) / TA 13.1b) |
| Beneish M = 1.68 (Cap -4..+1) = D |
As of June 20, 2026, the stock is trading at USD 73.92 with a total of 4,486,500 shares traded.
Over the past week, the price has changed by +11.17%,
over one month by +14.76%,
over three months by +66.41% and
over the past year by +19.84%.
Affirm Holdings has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy AFRM.
- StrongBuy: 11
- Buy: 6
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 83.2 | 12.5% |
P/E Trailing = 65.3636
P/E Forward = 35.9712
P/S = 6.0629
P/B = 6.3644
P/EG = 0.7075
Revenue TTM = 3.97b USD
EBIT TTM = 836.6m USD
EBITDA TTM = 1.12b USD
Long Term Debt = 9.05b USD (from longTermDebt, last quarter)
Short Term Debt = 3.78m USD (from shortTermDebt, last quarter)
Debt = 9.09b USD (corrected: LT Debt 9.05b + ST Debt 3.78m) + Leases 38.6m
Net Debt = 6.13b USD (calculated: Debt 9.09b - CCE 2.97b)
Enterprise Value = 30.2b USD (24.1b + Debt 9.09b - CCE 2.97b)
Interest Coverage Ratio = 1.90 (Ebit TTM 836.6m / Interest Expense TTM 441.4m)
EV/FCF = 48.69x (Enterprise Value 30.2b / FCF TTM 620.4m)
FCF Yield = 2.05% (FCF TTM 620.4m / Enterprise Value 30.2b)
FCF Margin = 15.62% (FCF TTM 620.4m / Revenue TTM 3.97b)
Net Margin = 9.63% (Net Income TTM 382.4m / Revenue TTM 3.97b)
Gross Margin = 67.71% ((Revenue TTM 3.97b - Cost of Revenue TTM 1.28b) / Revenue TTM)
Gross Margin QoQ = 65.93% (prev 69.42%)
Tobins Q-Ratio = 2.30 (Enterprise Value 30.2b / Total Assets 13.1b)
Interest Expense / Debt = 4.85% (Interest Expense 441.4m / Debt 9.09b)
Taxrate = 3.24% (12.8m / 395.2m)
NOPAT = 809.6m (EBIT 836.6m * (1 - 3.24%))
Current Ratio = 11.74 (Total Current Assets 2.71b / Total Current Liabilities 231.0m)
Debt / Equity = 2.40 (Debt 9.09b / totalStockholderEquity, last quarter 3.78b)
Debt / EBITDA = 5.49 (Net Debt 6.13b / EBITDA 1.12b)
Debt / FCF = 9.88 (Net Debt 6.13b / FCF TTM 620.4m)
Total Stockholder Equity = 3.42b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.24% (Net Income 382.4m / Total Assets 13.1b)
RoE = 11.17% (Net Income TTM 382.4m / Total Stockholder Equity 3.42b)
RoCE = 6.71% (EBIT 836.6m / Capital Employed (Equity 3.42b + L.T.Debt 9.05b))
RoIC = 6.25% (NOPAT 809.6m / Invested Capital 12.9b)
WACC = 11.81% (E(24.1b)/V(33.2b) * Re(14.50%) + D(9.09b)/V(33.2b) * Rd(4.85%) * (1-Tc(0.03)))
Discount Rate = 14.50% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 77.78 | Cagr: 5.66%
[DCF] Terminal Value 67.62% ; FCFF base≈494.5m ; Y1≈566.9m ; Y5≈834.3m
[DCF] Fair Price = 5.59 (EV 7.77b - Net Debt 6.13b = Equity 1.64b / Shares 294.4m; r=11.81% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.44 | # QB: 0
Revenue Correlation: 99.72 | Revenue CAGR: 40.16% | SUE: 0.48 | # QB: 0
EPS next Quarter (2026-09-30): EPS=0.87 | Chg30d=-10.74% | Revisions=-25% | Analysts=5
EPS current Year (2026-06-30): EPS=3.10 | Chg30d=-0.94% | Revisions=+40% | GrowthEPS=+77.6% | GrowthRev=+30.3%
EPS next Year (2027-06-30): EPS=3.78 | Chg30d=+0.46% | Revisions=+20% | GrowthEPS=+21.7% | GrowthRev=+25.2%
[Analyst] Revisions Ratio: +40%