Finance of America Companies (FOA) AI Stock Analysis

• Market Cap: $381.93M
• Dividend Yield: N/A
• Average Volume (3M): 94.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 93.57%
• EPS Growth: -106.02%
• Country: US
• Employees: 751
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.33
• Shares Outstanding: 7,891,348
• 10 Day Avg. Volume: 77,806
• 30 Day Avg. Volume: 94,277
• 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: 78.66
• Enterprise Value/Revenue: 20.59
• Enterprise Value/Gross Profit: 168.11
• Enterprise Value/Ebitda: 640.68
• 1Y Price Target: $29.50
• Price Target Upside: 28.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $23.00 ▲(0.09% Upside)

Finance of America's overall stock score reflects significant financial challenges, with declining revenues and profitability issues being the most impactful factors. Despite operational efficiency, the company struggles with negative net income and cash flow. The technical analysis provides mixed signals, while valuation metrics are unattractive due to a negative P/E ratio. However, the earnings call and recent corporate events highlight potential for future growth and strategic improvements.

Positive Factors

Strategic Acquisition

This acquisition enhances market leadership and expands the servicing platform, providing a new distribution channel and supporting long-term growth.

Revenue Growth

Significant growth in funded volumes indicates strong demand and effective market penetration, supporting future revenue expansion.

Operational Efficiency

Strong margins reflect effective cost management and operational efficiency, which are crucial for sustaining profitability in the long term.

Negative Factors

Negative Net Income

Persistent negative net income indicates ongoing profitability challenges, which could hinder reinvestment and growth opportunities.

Cash Flow Challenges

Negative cash flows limit the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Declining Revenue

A declining revenue trend can signal weakening demand or competitive pressures, impacting future growth and market position.

Finance of America Companies Business Overview & Revenue Model

Company Description

Finance of America Companies (FOA) is a diversified financial services company that focuses on providing a wide range of mortgage and financial products. The company operates through several segments, including mortgage origination, servicing, and investment management. FOA offers products such as residential and commercial mortgages, as well as home equity loans and reverse mortgages, catering to both individual consumers and institutional investors.

How the Company Makes Money

Finance of America Companies generates revenue primarily through the origination and servicing of mortgage loans. The company earns income from origination fees, interest income on mortgage loans, and servicing fees charged to mortgage holders. Additionally, FOA may profit from selling loans to investors in the secondary mortgage market, which provides liquidity and allows the company to manage capital efficiently. The company also engages in investment management services, earning fees for managing investment portfolios and funds. Strategic partnerships with financial institutions and technology firms enhance their offerings and expand their market reach, further contributing to their revenue streams.

Finance of America Companies Financial Statement Overview

Summary

Finance of America Companies faces significant financial challenges, with declining revenues and profitability issues. While operational efficiency is evident in high gross and EBIT margins, the company struggles with negative net income and cash flow. The balance sheet shows improved leverage, but the negative return on equity highlights ongoing profitability concerns. Overall, the company needs to address revenue growth and cash flow management to improve its financial health.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a negative net profit margin of -0.26%, reflecting a loss-making period. Revenue has decreased by 10.19% compared to the previous period, indicating a declining trend. However, the gross profit margin remains strong at 96.03%, suggesting efficient cost management. The EBIT and EBITDA margins are also high at 93.63% and 96.58%, respectively, indicating operational efficiency despite the net loss.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 8.24% in the TTM, which is relatively low compared to previous years, indicating improved leverage management. However, the return on equity is negative, reflecting losses and potential inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the overall leverage remains a concern.

Cash Flow

The cash flow statement highlights challenges with negative operating and free cash flows in the TTM. The free cash flow growth rate is positive at 18.18%, showing some improvement. However, the operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is 1.0, suggesting that free cash flow aligns with net income, but both are negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.95B	1.57B	686.96M	0.00	2.39B
Gross Profit	178.71M	270.64M	177.03M	-32.38M	0.00	1.74B
EBITDA	46.89M	81.76M	-119.30M	-278.01M	0.00	519.58M
Net Income	6.04M	15.49M	-80.09M	-190.68M	0.00	518.39M
Balance Sheet
Total Assets	30.66B	29.16B	27.11B	20.87B	21.79B	19.57B
Cash, Cash Equivalents and Short-Term Investments	402.39M	47.38M	46.48M	61.15M	143.49M	247.29M
Total Debt	30.16B	28.72B	26.63B	20.12B	20.31B	18.46B
Total Liabilities	30.29B	28.84B	26.84B	20.47B	20.71B	18.94B
Stockholders Equity	283.19M	255.30M	232.31M	253.93M	387.90M	628.18M
Cash Flow
Free Cash Flow	-444.51M	-423.81M	-71.57M	1.41B	-114.72M	-709.21M
Operating Cash Flow	-444.51M	-423.81M	-71.57M	1.41B	-96.59M	-686.09M
Investing Cash Flow	416.31M	114.80M	158.14M	-1.82B	-1.62B	-875.11M
Financing Cash Flow	210.28M	386.21M	-139.23M	225.21M	1.67B	1.72B

Finance of America Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.98
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 22.98 is below the 20-day moving average (MA) of 23.31, above the 50-day MA of 22.76, and above the 200-day MA of 22.82, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 44.81 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	70 Outperform	$374.14M	2.17	12.53%	9.70%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	64 Neutral	$739.79M	13.97	14.57%	―	2.31%	-27.81%
QD	63 Neutral	$620.88M	5.51	6.75%	―	-62.48%	1441.74%
PRAA	61 Neutral	$659.75M	-1.91	-31.97%	―	13.89%	-899.50%
GDOT	61 Neutral	$712.13M	-15.06	-5.09%	―	23.12%	19.37%
FOA	51 Neutral	$381.93M	-4.75	-0.27%	―	93.57%	-106.02%

Finance of America Companies Corporate Events

Finance of America Acquires Reverse Mortgage Assets

On November 17, 2025, Finance of America Reverse LLC entered into an agreement to acquire reverse mortgage assets from PHH Mortgage Corporation, a subsidiary of Onity Group Inc. This strategic acquisition, expected to close in the first quarter of 2026, aims to enhance Finance of America’s market leadership and expand its servicing platform. The transaction will also facilitate a new distribution channel for Finance of America’s HomeSafe Second product, broadening its reach to PHH’s forward mortgage customers and supporting the company’s growth strategy.

Finance of America Completes Consent Transactions Agreement

On October 21, 2025, Finance of America Funding LLC completed consent transactions as part of a Consent Support Agreement involving several subsidiaries and holders of its senior secured notes. The transactions included entering into Supplemental Indentures allowing restricted payments for equity repurchase and changes in treatment of proceeds from certain instruments, impacting the company’s financial operations and stakeholder interests.