Finance of America Companies (FOA) AI Stock Analysis

• Market Cap: $574.91M
• Dividend Yield: N/A
• Average Volume (3M): 130.76K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.39
• Revenue Growth: 276.86%
• EPS Growth: N/A
• Country: US
• Employees: 751
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.55
• Shares Outstanding: 11,079,270
• 10 Day Avg. Volume: 154,665
• 30 Day Avg. Volume: 130,762
• PEG Ratio: -0.15
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -0.65
• Enterprise Value/Market Cap: 52.43
• Enterprise Value/Revenue: 24.49
• Enterprise Value/Gross Profit: 44.92
• Enterprise Value/Ebitda: 40.78
• 1Y Price Target: $25.00
• Price Target Upside: 9.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $25.00 ▲(9.03% Upside)

Finance of America's overall stock score is driven by mixed financial performance and challenging valuation metrics. Despite positive earnings call highlights, including volume growth and digital advancements, the stock faces bearish technical indicators and profitability concerns. The company's efforts to reduce debt and improve cash flow are positive, but sustainability remains a key risk.

Finance of America Companies Business Overview & Revenue Model

Company Description

Finance of America Companies Inc. operates a consumer lending platform in the United States. The company operates through: Mortgage Originations, Reverse Originations, Commercial Originations, Lender Services, and Portfolio Management segments. It provides residential mortgage loans to the government sponsored entities; government-insured agricultural lending solutions to farmers; product development, loan securitization, loan sales, risk management, asset management, and servicing oversight services to enterprise and third-party funds; and ancillary business services, title agency and title insurance services, mortgage servicing rights valuation and trade brokerage, transactional fulfillment services, mortgage loan third party review or due diligence services, and appraisal and capital management services to residential mortgage, student lending, and commercial lending industry customers. The company was founded in 2013 and is based in Irving, Texas.

How the Company Makes Money

Finance of America Companies generates revenue primarily through the origination and servicing of loans. The company's key revenue streams include interest income from mortgage loans, fees collected from loan origination and servicing, and revenue from its reverse mortgage products. Additionally, FOA benefits from partnerships with various real estate agents and brokers, enhancing its distribution channels. The firm also generates income from its investment in mortgage-backed securities, as well as from servicing fees associated with managing existing loans. Factors contributing to its earnings include market demand for housing, interest rates, and the overall economic environment influencing consumer borrowing behavior.

Finance of America Companies Financial Statement Overview

Summary

Finance of America Companies shows a mixed financial performance. Revenue growth is strong, but profitability and cash flow generation are weak. The company has improved its debt position, but sustainability concerns remain due to negative free cash flow.

Income Statement

Finance of America Companies shows a mixed performance in its income statement. The company experienced significant revenue growth of 44.33% from 2023 to 2024, which is a positive indicator. However, profitability is a concern as net income remains low relative to revenue, resulting in a low net profit margin. The EBIT margin is positive, indicating operational profitability, but the negative EBITDA suggests challenges in managing non-operating expenses.

Balance Sheet

The balance sheet reflects a strong equity position with the debt-to-equity ratio improving significantly, as total debt was reduced to zero in 2024. The equity ratio is low, indicating high leverage historically, but the company's efforts to reduce debt are promising. Return on Equity (ROE) is positive due to net income improvement, but the overall low equity base suggests potential risk.

Cash Flow

Cash flow analysis reveals challenges in generating positive cash flows. While the free cash flow growth rate is a concern with significant negative values in recent years, the company has improved its operating cash flow to net income ratio, indicating better cash management. However, free cash flow remains negative, raising sustainability concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	338.17M	234.25M	686.96M	1.80B	1.74B
Gross Profit	671.01M	338.17M	177.03M	-32.38M	1.71B	1.74B
EBITDA	739.15M	81.76M	-119.30M	-278.01M	-271.48M	0.00
Net Income	53.23M	15.49M	-80.09M	-190.68M	-251.94M	-17.66M
Balance Sheet
Total Assets	29.69T	29.16B	27.11B	20.87B	21.79B	19.57B
Cash, Cash Equivalents and Short-Term Investments	52.02B	47.38M	46.48M	76.78M	141.24M	233.10M
Total Debt	0.00	28.72B	26.29B	20.12B	20.23B	18.42B
Total Liabilities	29.29T	28.84B	26.84B	20.47B	20.71B	18.94B
Stockholders Equity	394.89B	255.30M	232.31M	253.93M	387.90M	628.18M
Cash Flow
Free Cash Flow	-383.19M	-423.81M	-71.57M	1.41B	-140.65M	-709.21M
Operating Cash Flow	-383.65M	-423.81M	-71.57M	1.41B	-96.59M	-686.09M
Investing Cash Flow	110.80M	114.80M	158.14M	-1.82B	-1.62B	-875.11M
Financing Cash Flow	281.14M	386.21M	-139.23M	225.21M	1.67B	1.72B

Finance of America Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 22.93 is below the 20-day moving average (MA) of 25.71, below the 50-day MA of 25.44, and below the 200-day MA of 23.67, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 36.37 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FOA.

Finance of America Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	77 Outperform	514.12M	2.90	16.58%	6.50%	12.69%	-35.36%
WRLD	75 Outperform	958.40M	12.19	18.96%	―	0.77%	12.08%
QD	70 Outperform	685.27M	10.51	0.81%	―	-39.25%	―
GDOT	65 Neutral	813.72M	-32.58	-2.61%	―	22.15%	57.64%
PRAA	62 Neutral	620.10M	6.85	6.85%	―	18.67%	2254.86%
FOA	53 Neutral	$574.91M	30.12	33.40%	―	276.86%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Finance of America Companies Corporate Events

Finance of America Repurchases Blackstone’s Equity Stake

On August 4, 2025, Finance of America Companies Inc. announced the repurchase of Blackstone’s equity stake and the repayment of its working capital facility, marking a significant milestone in its strategic evolution. The company also entered into a new convertible debt facility with existing institutional investors, enhancing its financial position and supporting strategic expansion. These transactions are expected to strengthen the company’s balance sheet, reduce costs, and position it for future growth, reflecting a commitment to long-term value creation.

Finance of America Holds Annual Stockholders Meeting

On May 16, 2025, Finance of America Companies Inc. held its Annual Meeting of Stockholders, where three key proposals were voted on. The stockholders elected six directors to the board for terms expiring at the 2026 annual meeting. Additionally, the compensation of the named executive officers was approved on an advisory basis, and the appointment of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.