Lument Finance Trust (LFT) AI Stock Analysis

• Market Cap: $94.74M
• Dividend Yield: 19.77%
• Average Volume (3M): 164.25K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.37
• Revenue Growth: -24.12%
• EPS Growth: -47.91%
• Country: US
• Employees: 600
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.05
• Shares Outstanding: 52,341,045
• 10 Day Avg. Volume: 137,543
• 30 Day Avg. Volume: 164,248
• PEG Ratio: 0.35
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 3.87
• P/FCF Ratio: 4.97
• Enterprise Value/Market Cap: 9.18
• Enterprise Value/Revenue: 14.58
• Enterprise Value/Gross Profit: 20.17
• Enterprise Value/Ebitda: 10.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $2.00 ▲(10.50% Upside)

Lument Finance Trust's overall score is primarily impacted by its financial performance challenges, particularly in revenue and profit growth. The technical analysis indicates bearish momentum, adding to the cautious outlook. However, the stock's valuation is attractive due to a low P/E ratio and high dividend yield, providing some support. The mixed earnings call results further contribute to the moderate score.

Positive Factors

Balance Sheet Health

A strong equity position and absence of debt improve financial stability and reduce leverage risk, enhancing long-term resilience.

Cash Flow Management

Effective cash flow management ensures liquidity and operational flexibility, supporting sustainable business operations and growth.

Multifamily Sector Stability

Stable multifamily sector conditions provide a reliable revenue base, supporting long-term income stability and asset value retention.

Negative Factors

Revenue Decline

A significant revenue decline poses challenges for income sustainability, potentially impacting long-term profitability and growth prospects.

High-Risk Loan Portfolio

A high proportion of risk-rated loans increases default risk, potentially leading to financial losses and impacting asset quality.

Foreclosures

Foreclosures indicate asset quality issues, leading to potential financial losses and affecting the company's investment portfolio stability.

Lument Finance Trust Business Overview & Revenue Model

Company Description

Lument Finance Trust (LFT) is a real estate investment trust (REIT) focused on investing in and managing a diversified portfolio of commercial real estate assets. The company primarily operates in the healthcare and multifamily sectors, providing financing solutions through debt and equity investments. LFT aims to generate sustainable income through its investments while seeking opportunities for capital appreciation in its targeted asset classes.

How the Company Makes Money

Lument Finance Trust generates revenue through interest income from its mortgage loans and other financing products, as well as through rental income from its real estate investments. The company's main revenue streams include the origination of mortgage loans secured by commercial real estate, income from equity interests in its properties, and asset management fees. Additionally, the company may benefit from partnerships with other financial institutions and real estate developers that enhance its investment opportunities. Market conditions, interest rates, and the overall performance of the commercial real estate sector also play significant roles in influencing LFT's earnings.

Lument Finance Trust Financial Statement Overview

Summary

Lument Finance Trust faces challenges in sustaining revenue and profit growth, with improvements in balance sheet stability due to reduced leverage. Strong cash flow metrics are offset by income volatility, impacting future performance.

Income Statement

Lument Finance Trust has shown fluctuating revenue trends with a notable decline to zero revenue in the most recent year. The gross profit margin has been volatile, and the net income has varied, reflecting inconsistent profit margins. The revenue growth has been unstable, which poses a challenge for sustainable income performance.

Balance Sheet

The company exhibits a strong equity position with no total debt reported for the latest period, significantly improving the debt-to-equity ratio. The equity ratio indicates a stable financial structure, although past liabilities were high relative to equity. This suggests improved financial health and reduced leverage risk.

Cash Flow

Lument Finance Trust has demonstrated healthy free cash flow growth and a strong operating cash flow to net income ratio. The positive cash flow metrics indicate good cash management, although the recent investment cash flow fluctuations suggest potential volatility in future free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.64M	34.86M	32.08M	20.02M	21.07M	19.14M
Gross Profit	43.13M	34.86M	32.08M	20.02M	21.07M	19.14M
EBITDA	80.10M	103.44M	94.52M	42.68M	28.15M	23.16M
Net Income	14.24M	22.65M	19.71M	9.86M	10.53M	8.45M
Balance Sheet
Total Assets	998.39M	1.13B	1.45B	1.13B	1.05B	621.49M
Cash, Cash Equivalents and Short-Term Investments	59.40M	69.17M	51.25M	43.86M	14.75M	11.38M
Total Debt	757.46M	875.86M	1.19B	876.28M	873.63M	502.62M
Total Liabilities	766.93M	890.70M	1.21B	884.96M	879.55M	507.79M
Stockholders Equity	231.36M	237.80M	240.69M	242.90M	169.28M	113.60M
Cash Flow
Free Cash Flow	20.26M	27.13M	24.74M	16.29M	13.85M	12.22M
Operating Cash Flow	20.26M	27.13M	24.74M	16.29M	13.85M	12.22M
Investing Cash Flow	287.78M	334.09M	-316.72M	-51.83M	-477.29M	87.92M
Financing Cash Flow	-313.88M	-341.17M	296.13M	64.63M	412.35M	-46.77M

Lument Finance Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFT, the sentiment is Negative. The current price of 1.81 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.05, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 21.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFT.

Lument Finance Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEVN	66 Neutral	$158.23M	9.94	5.71%	12.44%	-16.74%	-32.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ACR	58 Neutral	$143.40M	―	5.05%	―	-16.01%	-98.23%
LFT	56 Neutral	$94.74M	9.97	6.01%	19.77%	-24.12%	-47.91%
RPT	50 Neutral	$110.37M	―	-2.52%	9.60%	-23.34%	95.08%
CHMI	49 Neutral	$85.79M	―	-2.56%	23.11%	-2.02%	-20.61%
GPMT	49 Neutral	$122.28M	―	-14.12%	7.27%	-29.55%	42.09%

Lument Finance Trust Corporate Events

Lument Finance Trust Declares Q3 2025 Dividends

On September 16, 2025, Lument Finance Trust, Inc. announced the declaration of a cash dividend of $0.04 per share for its common stock and $0.4921875 per share for its 7.875% Cumulative Redeemable Series A Preferred Stock for the third quarter of 2025. These dividends are payable on October 15, 2025, to stockholders of record as of the end of September and early October. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence investor perceptions and market positioning.

The most recent analyst rating on (LFT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Lument Finance Trust stock, see the LFT Stock Forecast page.

Lument Finance Trust’s Earnings Call: A Cautious Optimism

The recent earnings call for Lument Finance Trust, Inc. presented a mixed but cautiously optimistic outlook. The company highlighted a stable multifamily sector and a resurgence in the CRE CLO market, yet these positive notes were balanced by declines in net interest income, increased operating expenses, and significant loan defaults.

Lument Finance Trust, Inc. Reports Q2 2025 Earnings

Lument Finance Trust, Inc. is a Maryland-based real estate investment trust (REIT) that focuses on investing in, originating, financing, and managing a portfolio of commercial real estate debt investments. The company is externally managed by Lument Investment Management and trades on the NYSE under the symbol ‘LFT.’