Finance of America Companies (FOA) AI Stock Analysis

• Market Cap: $559.11M
• Dividend Yield: N/A
• Average Volume (3M): 125.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• 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: 11,079,270
• 10 Day Avg. Volume: 86,712
• 30 Day Avg. Volume: 125,905
• 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: 53.73
• Enterprise Value/Revenue: 22.74
• Enterprise Value/Gross Profit: 23.32
• Enterprise Value/Ebitda: 19.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $21.50 ▼(-3.76% Downside)

Finance of America's overall stock score is primarily impacted by its financial challenges, including high leverage and cash flow issues. While the earnings call provided some positive insights, such as improved adjusted net income and strategic partnerships, the negative technical indicators and valuation concerns weigh heavily on the score.

Finance of America Companies Business Overview & Revenue Model

Company Description

Finance of America Companies (FOA) is a diversified financial services firm that operates primarily in the mortgage and real estate sectors. The company provides a wide range of services including residential and commercial mortgage lending, reverse mortgages, and other real estate-related financial products. FOA aims to serve various customer segments, from individual homebuyers to institutional investors, through its innovative lending solutions and technology-driven platforms.

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 faces significant financial challenges. Despite a strong gross profit margin, declining revenues, high leverage, and cash flow issues indicate potential liquidity constraints. The company needs to address its debt levels and improve revenue generation to enhance financial stability.

Income Statement

The income statement shows a mixed performance. The company has a strong gross profit margin of 97.47% TTM, indicating efficient cost management. However, the net profit margin is relatively low at 6.83% TTM, and there is a significant revenue decline of 18.94% TTM, suggesting challenges in revenue generation. The EBIT and EBITDA margins are unusually high due to accounting adjustments, which may not reflect operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 90.79 TTM, indicating significant reliance on debt financing. The return on equity is modest at 30.45% TTM, but the equity ratio is low, suggesting potential financial instability. The high debt levels pose a risk, especially in volatile market conditions.

Cash Flow

The cash flow statement highlights negative operating and free cash flows, with a free cash flow growth rate of -1.84% TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is 1.0, suggesting that all net income is being consumed by free cash flow needs, limiting reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	338.17M	234.25M	686.96M	1.80B	1.74B
Gross Profit	1.29B	338.17M	177.03M	-32.38M	1.71B	1.74B
EBITDA	1.52B	81.76M	-119.30M	-278.01M	-271.48M	0.00
Net Income	90.25M	15.49M	-80.09M	-190.68M	-251.94M	-17.66M
Balance Sheet
Total Assets	30.15B	29.16B	27.11B	20.87B	21.79B	19.57B
Cash, Cash Equivalents and Short-Term Investments	46.48M	47.38M	46.48M	76.78M	141.24M	233.10M
Total Debt	29.53B	28.72B	26.29B	20.12B	20.23B	18.42B
Total Liabilities	29.67B	28.84B	26.84B	20.47B	20.71B	18.94B
Stockholders Equity	325.26M	255.30M	232.31M	253.93M	387.90M	628.18M
Cash Flow
Free Cash Flow	-376.13M	-423.81M	-71.57M	1.41B	-140.65M	-709.21M
Operating Cash Flow	-376.13M	-423.81M	-71.57M	1.41B	-96.59M	-686.09M
Investing Cash Flow	98.02M	114.80M	158.14M	-1.82B	-1.62B	-875.11M
Financing Cash Flow	268.14M	386.21M	-139.23M	225.21M	1.67B	1.72B

Finance of America Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 22.34 is above the 20-day moving average (MA) of 22.17, below the 50-day MA of 23.53, and below the 200-day MA of 22.99, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 53.14 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	75 Outperform	$453.63M	2.56	13.64%	8.30%	12.69%	-35.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	64 Neutral	$786.00M	11.22	4.57%	―	-39.25%	―
WRLD	63 Neutral	$731.81M	12.45	14.57%	―	2.31%	―
GDOT	59 Neutral	$669.70M	―	-2.68%	―	22.15%	57.64%
PRAA	46 Neutral	$529.64M	―	-31.97%	―	13.79%	-899.50%
FOA	44 Neutral	$559.11M	―	-0.09%	―	93.57%	-106.02%

Finance of America Companies Corporate Events

Finance of America Reports Strong Year-to-Date Growth

Finance of America Companies Inc., headquartered in Plano, Texas, is a leading provider of home equity-based financing solutions, primarily serving the retirement sector and offering capital markets and portfolio management services.

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.

The most recent analyst rating on (FOA) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Finance of America Companies stock, see the FOA Stock Forecast page.

Finance of America Reports Strong Q2 Growth and Achievements

The recent earnings call for Finance of America Companies Inc. was marked by a generally positive sentiment, reflecting strong performance and growth. The company reported significant increases in funded volume and improved financial metrics, alongside successful strategic initiatives, particularly in technology and capital markets. However, the call also highlighted ongoing challenges in managing expenses.

Finance of America Reports Strong Q2 2025 Results

Finance of America Companies Inc., headquartered in Plano, Texas, is a prominent provider of home equity-based financing solutions, primarily catering to the retirement sector, with additional capabilities in capital markets and portfolio management.

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.

The most recent analyst rating on (FOA) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Finance of America Companies stock, see the FOA Stock Forecast page.