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Finance of America Companies (FOA)
NYSE:FOA
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Finance of America Companies
(NYSE:FOA)
59Neutral
Finance of America Companies (FOA) vs. S&P 500 (SPY)
Market Cap
$210.44M
Dividend YieldN/A
Average Volume (3M)117.90K
Price to Earnings (P/E)4.0
Beta (1Y)-0.13
Revenue Growth1710.53%
EPS GrowthN/A
CountryUS
Employees922
SectorFinancial
Sector Strength77
IndustryCredit Finance
Share Statistics
EPS (TTM)5.32
Shares Outstanding9,926,412
10 Day Avg. Volume106,284
30 Day Avg. Volume117,900
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.29
Price to Cash Flow (P/CF)-0.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.00Price Target Upside13.21% Upside
Rating ConsensusHold
Number of Analyst Covering0
Finance of America Companies Business Overview & Revenue Model
Company DescriptionReplay Acquisition Corp. is a blank check company, which formed for a purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company was founded by Edmond M. Safra, Gregorio Werthein, and Gerardo Werthein on November 6, 2018 and is headquartered in New York, NY.
How the Company Makes MoneyFinance of America Companies generates revenue through interest income and fees associated with its lending activities. The company earns money by originating and servicing loans, providing financial products such as reverse mortgages, and facilitating real estate transactions. Key revenue streams include the interest collected on the loans it issues, origination fees, and servicing fees for managing the loans over their lifecycle. Additionally, FOA benefits from partnerships with financial institutions and government-sponsored enterprises, which help to broaden its market reach and enhance its ability to offer competitive loan products.
Finance of America Companies Financial Statement Overview
Summary
Finance of America Companies shows a mixed financial health profile. The income statement indicates operational improvements but inconsistent revenue and historical net losses. The balance sheet reveals high leverage, suggesting financial risk, and cash flow challenges indicate liquidity issues. These factors necessitate revenue stabilization and balance sheet strengthening.Income Statement
The income statement shows a volatile performance with significant fluctuations in profitability. The TTM period indicates a gross profit margin of 90.95% and a net profit margin of 18.64%, which are strong. However, the revenue growth is inconsistent, with a recent decline from 2020 to 2023. EBIT and EBITDA margins have improved in the TTM period, indicating operational efficiency gains, but historical net losses are concerning.45
Neutral
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 32.04 in the TTM period, indicating financial risk. The equity ratio remains low at 1.08%, suggesting limited financial stability. However, there has been a slight improvement in stockholders' equity, reflecting potential recovery.30
Negative
Cash Flow
The cash flow statement indicates challenges in generating positive operating cash flow, with negative free cash flow in the TTM. The free cash flow growth rate and operating cash flow to net income ratio are unfavorable, highlighting liquidity concerns. Despite this, cash flow from investing and financing activities shows attempts to balance cash needs.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 796.26M | 234.25M | 573.24M | 1.74B | 1.74B | 847.60M | Gross Profit |
| 724.12M | 234.25M | 544.85M | 1.71B | 1.74B | 847.60M | EBIT |
| 870.24M | -54.67M | -87.41M | -271.48M | 520.73M | 55.36M | EBITDA |
| 1.10B | 0.00 | 0.00 | -271.48M | 0.00 | 19.01M | Net Income Common Stockholders |
| 148.47M | -80.09M | -715.53M | -1.18B | 518.39M | 76.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 224.80M | 46.48M | 18.67M | 141.24M | 247.29M | 1.59M | Total Assets |
| 27.11B | 27.11B | 20.87B | 21.79B | 19.57B | 293.71M | Total Debt |
| 26.63B | 26.29B | 20.19B | 20.23B | 18.42B | 3.90B | Net Debt |
| 26.40B | 26.24B | 20.10B | 20.09B | 18.17B | 3.90B | Total Liabilities |
| 26.84B | 26.84B | 20.47B | 20.71B | 18.94B | 28.10M | Stockholders Equity |
| 232.31M | 232.31M | 253.93M | 387.90M | 628.18M | 265.61M |
| Cash Flow | Free Cash Flow | ||||
| -259.33M | -71.57M | 1.40B | -140.65M | -709.21M | 96.84M | Operating Cash Flow |
| -378.94M | -71.57M | 1.41B | -96.59M | -686.09M | 101.13M | Investing Cash Flow |
| 164.40M | 158.14M | -1.82B | -1.62B | -875.11M | -2.03B | Financing Cash Flow |
| 152.29M | -139.23M | 225.21M | 1.67B | 1.72B | 2.07B |
Finance of America Companies Technical Analysis
Negative
21.20
Price Trends
25.50
Negative
22.00
Negative
14.84
Positive
Market Momentum
-1.04
Positive
40.54
Neutral
31.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOA, the sentiment is Negative. The current price of 21.2 is below the 20-day moving average (MA) of 23.17, below the 50-day MA of 25.50, and above the 200-day MA of 14.84, indicating a neutral trend. The MACD of -1.04 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 31.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FOA.
Finance of America Companies Risk Analysis
Finance of America Companies disclosed 71 risk factors in its most recent earnings report. Finance of America Companies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Finance of America Companies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.31B | 9.74 | 14.71% | ― | 22.89% | 39.00% | |
68 Neutral | $1.45B | 13.60 | 7.06% | 7.86% | -5.09% | 6.25% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
62 Neutral | $4.97B | 16.56 | 8.45% | 1.14% | 42.36% | 110.48% | |
59 Neutral | $210.44M | 3.99 | 60.56% | ― | 1710.53% | ― | |
59 Neutral | $26.31B | 78.31 | 4.43% | ― | 30.23% | ― |
* Financial Sector Average
Performance Comparison
FOA
Finance of America Companies
21.75
14.26
190.39%
PFSI
PennyMac Financial
95.98
10.20
11.89%
LADR
Ladder Capital
11.51
1.41
13.96%
COOP
Mr Cooper Group
100.67
27.51
37.60%
RKT
Rocket Companies
14.25
1.76
14.09%
Finance of America Companies Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 0.00% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
Finance of America demonstrated substantial growth in loan funding and financial performance in 2024, with successful cost efficiency improvements and a record securitization. However, the company faced challenges with a Q4 net loss and underperformance in market penetration for certain products. Overall, the positive aspects like revenue growth and cost efficiency outweigh the challenges faced.Highlights
Significant Loan Funding Growth
Finance of America funded over $1.9 billion in loans in 2024, marking a 19% increase in volume year-over-year. They project full-year origination volumes for 2025 to be in the range of $2.4 billion to $2.7 billion, a 26% to 42% increase from 2024.
Strong Financial Performance
The company recognized positive GAAP net income of $40 million, adjusted net income of $14 million, and adjusted EBITDA of $60 million in 2024. This represents a $200 million increase in GAAP net income and nearly $100 million increase in adjusted net income from 2023.
Revenue Margin Expansion
Finance of America experienced a 16% increase in revenue margins from 9.2% in 2023 to 10.7% in 2024 on $1.9 billion of production. This was driven by a higher margin product mix and improved execution of proprietary products.
Cost Efficiency Improvements
The company achieved $48 million in cost reductions through technology-driven process automation and lower corporate overhead, such as workforce optimization and real estate consolidations.
Record Securitization
In February 2025, Finance of America completed the largest securitization from non-agency proprietary products in its history, enhancing liquidity and supporting continued growth.
Lowlights
Q4 Net Loss
For the fourth quarter of 2024, the company reported a net loss of $143 million, or $5.95 per share, despite a full-year adjusted net income of $14 million.
Volatility in Interest Rates
There was some pressure on revenue margins in Q4 2024 due to volatile interest rates, which affected the net gain on originations line.
Underperformance in Market Penetration
Despite significant growth in the HomeSafe Second product with 77% growth between the first and second half of 2024, the market penetration remains low, accounting for only one-tenth of 1% of the total lending to the senior demographic.
Company Guidance
During the Finance of America 4Q and FY2024 earnings call, guidance for 2025 was provided, with key metrics highlighting a strong performance and strategic progress made in 2024. The company funded more than $1.9 billion in loans, marking a 19% increase in volume year-over-year. For 2025, they anticipate origination volumes between $2.4 billion to $2.7 billion, a projected 26% to 42% increase from 2024. Financially, Finance of America reported a GAAP net income of $40 million, adjusted net income of $14 million, and adjusted EBITDA of $60 million for 2024. They also achieved a $206 million increase in GAAP net income and nearly $100 million increase in adjusted net income from 2023 to 2024. Cost efficiencies were realized through a $48 million reduction in the cost base, attributed to technology-driven process automation and streamlined operations. For 2025, the company expects Q1 origination volume between $525 million to $550 million, with full-year adjusted net income projected between $2.60 to $3 per share.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.