Lument Finance Trust (LFT) AI Stock Analysis

• Market Cap: $121.95M
• Dividend Yield: 16.74%
• Average Volume (3M): 141.81K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.33
• Revenue Growth: -24.12%
• EPS Growth: -47.91%
• Country: US
• Employees: 600
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Mortgage
• EPS (TTM): 0.05
• Shares Outstanding: 52,341,045
• 10 Day Avg. Volume: 111,081
• 30 Day Avg. Volume: 141,815
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 7.13
• Enterprise Value/Revenue: 14.58
• Enterprise Value/Gross Profit: 20.17
• Enterprise Value/Ebitda: 10.86
• 1Y Price Target: $2.50
• Price Target Upside: 7.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $2.50 ▲(7.30% Upside)

Lument Finance Trust's overall score is driven by a strong valuation due to its high dividend yield and reasonable P/E ratio. However, financial performance challenges, including zero revenue and mixed earnings call outcomes, weigh on the score. Technical analysis indicates potential resistance, adding to the cautious outlook.

Positive Factors

Balance Sheet Health

A strong equity position and absence of debt enhance financial stability, reducing leverage risk and improving long-term resilience.

Cash Flow Management

Effective cash flow management supports operational flexibility and investment capacity, crucial for sustaining growth and navigating market changes.

Dividend Strategy

Strategic dividend management reflects a focus on long-term shareholder value, enhancing financial flexibility and stability.

Negative Factors

Revenue Decline

A decline to zero revenue indicates significant challenges in maintaining income streams, impacting long-term profitability and growth potential.

High-Risk Loan Portfolio

A high proportion of risk-rated loans increases default risk, potentially leading to financial instability and impacting future earnings.

Foreclosures

Foreclosures on significant loans indicate asset management challenges, potentially affecting the company's financial health and market confidence.

Lument Finance Trust Business Overview & Revenue Model

Company Description

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate commercial mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.

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 zero revenue reported recently. However, the balance sheet shows improvement due to reduced leverage, and cash flow metrics are strong, indicating good cash management despite potential volatility.

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: Positive
• Last Price: 2.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFT, the sentiment is Positive. The current price of 2.33 is above the 20-day moving average (MA) of 2.23, above the 50-day MA of 2.20, and below the 200-day MA of 2.40, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LFT.

Lument Finance Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITT	67 Neutral	$244.66M	8.93	8.66%	10.25%	22.45%	-44.01%
SEVN	66 Neutral	$164.23M	10.55	5.71%	12.29%	-16.74%	-32.89%
Sector *	63 Neutral	$7.03B	13.25	-0.30%	6.93%	4.01%	-25.47%
LFT	60 Neutral	$121.95M	12.83	6.01%	16.74%	-24.12%	-47.91%
EARN	60 Neutral	$212.59M	15.11	6.89%	16.96%	271.03%	31.81%
ACR	59 Neutral	$156.03M	66.03	5.05%	―	-16.01%	-98.23%
CHMI	54 Neutral	$107.41M	43.78	-2.56%	20.13%	-2.02%	-20.61%

Lument Finance Trust Corporate Events

Lument Finance Trust Declares Second Quarter Dividends

On June 20, 2025, Lument Finance Trust, Inc. announced the declaration of a cash dividend of $0.06 per share for common stock and $0.4921875 per share for 7.875% Cumulative Redeemable Series A Preferred Stock for the second quarter of 2025. These dividends are payable on July 15, 2025, to stockholders of record at the end of June and early July. CEO James P. Flynn emphasized the decision to adjust the dividend to preserve book value and support long-term earnings, aiming to maximize flexibility and manage liquidity effectively, thereby creating long-term value for shareholders.

Lument Finance Trust Holds Annual Stockholders Meeting

On June 12, 2025, Lument Finance Trust, Inc. held its annual stockholders meeting where shareholders re-elected six directors, approved executive compensation, and ratified KPMG, LLP as the accounting firm for 2025. The board decided to conduct annual advisory votes on executive compensation, reflecting shareholder preferences and aligning with the board’s recommendations.