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SHF Holdings (SHFS)
NASDAQ:SHFS
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SHF Holdings
(NASDAQ:SHFS)
57Neutral
SHF Holdings (SHFS) vs. S&P 500 (SPY)
Market Cap
$14.64M
Dividend YieldN/A
Average Volume (3M)128.78K
Price to Earnings (P/E)2.9
Beta (1Y)0.16
Revenue Growth-3.68%
EPS GrowthN/A
CountryUS
Employees45
SectorFinancial
Sector Strength85
IndustryBanking
Share Statistics
EPS (TTM)0.10
Shares Outstanding55,730,755
10 Day Avg. Volume132,344
30 Day Avg. Volume128,783
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.02
Price to Cash Flow (P/CF)8.50
P/FCF Ratio8.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
SHF Holdings Business Overview & Revenue Model
Company DescriptionNorthern Lights Acquisition Corp is a blank check company. It is formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses.
How the Company Makes MoneySHF Holdings generates revenue primarily through the provision of financial services tailored to the cannabis industry. The company earns money by charging fees for its banking services, which include account maintenance, transaction processing, and compliance management. Additionally, SHFS generates income through interest on loans provided to cannabis businesses, leveraging its expertise in navigating the industry's regulatory landscape. The company's partnerships with financial institutions and compliance firms further enhance its ability to offer comprehensive services, contributing to its revenue streams.
SHF Holdings Financial Statement Overview
Summary
SHF Holdings shows a mixed financial picture. The income statement reveals recent improvements in profitability but a history of volatility. The balance sheet is relatively stable with low leverage, yet asset trends suggest caution. Cash flow analysis points to operational effectiveness but highlights significant investment outflows. Overall, while there are signs of recovery, potential risks from past performance and cash flow issues warrant careful monitoring.Income Statement
The company's revenue has shown significant volatility over the years, with a notable decline from 2020 to 2022, followed by a recovery. The gross and net profit margins have improved in the TTM period, indicating a positive turnaround. However, past negative EBIT and EBITDA margins highlight a history of operational challenges.55
Neutral
Balance Sheet
The balance sheet reflects a strong equity base relative to liabilities, with a low debt-to-equity ratio indicating financial prudence. ROE has improved significantly in the TTM, showcasing efficient use of equity. However, the declining trend in total assets and erratic equity levels suggest potential instability.65
Positive
Cash Flow
Cash flow metrics reveal significant fluctuations, with operating cash flow improving but free cash flow showing large negative figures in the TTM due to high capital expenditures. The operating cash flow to net income ratio is positive, indicating operational cash generation, but the free cash flow to net income ratio is concerning.40
Negative
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.05M | 16.16M | -32.70M | 7.01M | 8.04M | Gross Profit |
| 14.83M | 14.78M | -34.69M | 7.00M | 8.04M | EBIT |
| 1.11M | -20.71M | -25.06M | 3.29M | 5.12M | EBITDA |
| 2.12M | -16.62M | -43.49M | 3.29M | 0.00 | Net Income Common Stockholders |
| 5.83M | -17.28M | -35.13M | 3.29M | 5.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.89M | 4.89M | 8.39M | 5.50M | 3.00M | Total Assets |
| 68.98M | 67.86M | 99.34M | 7.52M | 4.57M | Total Debt |
| 15.08M | 15.02M | 1.03M | 0.00 | 0.00 | Net Debt |
| 10.19M | 10.19M | -7.38M | -5.50M | -3.00M | Total Liabilities |
| 34.63M | 33.51M | 94.23M | 51.96K | 129.15K | Stockholders Equity |
| 34.36M | 34.36M | 5.11M | 7.34M | 4.35M |
| Cash Flow | Free Cash Flow | |||
| -208.43B | -1.04M | 1.68M | 2.94M | 4.95M | Operating Cash Flow |
| 2.60M | -832.14K | 1.70M | 2.95M | 4.95M | Investing Cash Flow |
| -2.96M | -2.18M | -2.90M | 1.04M | 5.83K | Financing Cash Flow |
| -2.73M | -488.83K | 4.09M | -1.49M | -3.57M |
SHF Holdings Technical Analysis
Negative
0.31
Price Trends
0.37
Negative
0.38
Negative
0.48
Negative
Market Momentum
-0.03
Negative
46.06
Neutral
50.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHFS, the sentiment is Negative. The current price of 0.31 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.37, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 50.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHFS.
SHF Holdings Risk Analysis
SHF Holdings disclosed 57 risk factors in its most recent earnings report. SHF Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SHF Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $69.43B | 17.56 | 20.00% | ― | 7.10% | 4.45% | |
71 Outperform | $10.20B | 15.71 | 13.32% | 1.71% | 15.33% | 46.64% | |
70 Outperform | $856.27M | 50.81 | 33.59% | ― | 2.71% | ― | |
66 Neutral | $4.59B | 25.31 | 15.66% | 0.96% | 12.29% | 99.57% | |
64 Neutral | $14.11B | 33.68 | 8.26% | ― | 29.33% | ― | |
63 Neutral | $14.34B | 10.26 | 8.58% | 4.25% | 17.34% | -11.60% | |
57 Neutral | $14.64M | 2.92 | 17.57% | ― | -3.68% | ― |
* Financial Sector Average
Performance Comparison
SHFS
SHF Holdings
0.31
-0.60
-65.93%
PIPR
Piper Sandler
259.07
68.84
36.19%
SF
Stifel Financial
98.27
23.49
31.41%
PYPL
PayPal Holdings
70.19
4.19
6.35%
OPFI
OppFi
9.76
7.48
328.07%
SOFI
SoFi Technologies
12.87
5.42
72.75%
SHF Holdings Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: -13.89% | Next Earnings Date: Mar 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted substantial growth in net income and loan interest income, alongside decreased operating expenses and strategic partnerships. However, these positives were offset by significant declines in overall revenue, deposit and onboarding revenue, and investment income, largely due to challenging market conditions. Despite improvements in certain financial metrics, the overall sentiment is balanced due to the mixed results.Highlights
Significant Increase in Net Income
Net income increased 147% year-over-year to $354,000 compared to a net loss of $748,000 for the year ago period.
Growth in Loan Interest Income
Loan interest income increased 48% in the third quarter and 143.5% for the 9 months year-over-year.
Decreased Operating Expenses
Third quarter and 9 months 2024 operating expenses decreased by 13% and 66% year-over-year, respectively.
New Credit Facility for Cannabis Operator
Originated a new $1.07 million secured credit facility for a Missouri-based cannabis operator, part of a $5 million commitment.
Partnership with BIPOCann
New partnership with BIPOCann to aid social equity and minority entrepreneurs in the cannabis sector, offering benefits and discounts.
Cash Flow Improvement
Cash provided by operating activities through the third quarter of 2024 was $3.2 million compared to cash used in operating activities of $225,000 in the comparable prior year period.
Lowlights
Revenue Decline
Revenue decreased 19.6% from the prior year period, with total revenue for 9 months down 11.6%.
Decrease in Deposit and Onboarding Revenue
Revenue for deposit activity and onboarding decreased by 26% for the quarter and over 29.6% for the 9 months year-over-year.
Drop in Investment Income
Investment income dropped approximately 60% for the quarter and 56.5% for the 9 months year-over-year.
Challenging Market Conditions
Revenue decline was due to challenging market conditions for cannabis-related businesses, including pricing pressures and increased competition.
Company Guidance
During Safe Harbor Financial's Q3 2024 earnings call, the company reported several key financial metrics, showcasing a significant turnaround. Net income increased by 147% year-over-year to $354,000, reversing a net loss of $748,000 from the previous year. Loan interest income saw substantial growth, rising by 48% for the quarter and 143.5% over the nine months, while operating expenses decreased by 13% and 66% for the respective periods. Despite a 19.6% drop in quarterly revenue to $3.5 million and a 26% decline in deposit activity revenue, Safe Harbor managed to enhance its cash flow and liquidity, ending the quarter with $5.9 million in cash and cash equivalents. The company remains focused on leveraging market growth opportunities, particularly in the expanding cannabis sector, while navigating challenges like decreased deposit activity and regulatory uncertainties. Looking forward, Safe Harbor anticipates full-year 2024 revenue to be in the range of $15 million to $15.5 million.SHF Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
SHF Holdings Announces Leadership Transition and Strategic Shift
Neutral
Jan 29, 2025
On January 28, 2025, Sundie Seefried, co-CEO of SHF Holdings, announced her intention to resign effective February 28, 2025, but will remain on the Board. Terry Mendez, a business transformation expert, will become the sole CEO after Seefried’s departure. This transition is part of Safe Harbor’s strategic planning initiative aimed at maximizing shareholder value and strengthening its market position in the cannabis financial services sector.
Executive/Board ChangesBusiness Operations and Strategy
SHF Holdings Appoints Terrance Mendez as Co-CEO
Neutral
Jan 27, 2025
On January 21, 2025, SHF Holdings, Inc. announced the hiring and appointment of Terrance Mendez as the new Co-Chief Executive Officer alongside Sundie Seefried, who was previously the sole CEO. Mr. Mendez brings extensive experience in executive leadership roles within the cannabis industry and financial sectors. His employment agreement includes a three-year term with an annual base salary of $360,000, eligibility for bonuses, stock options, and participation in the company’s long-term incentive plan. The agreement also includes a 10-month post-termination non-compete clause and a non-disparagement covenant, reflecting the company’s strategic focus on strengthening its leadership team.
Business Operations and StrategyRegulatory Filings and Compliance
SHF Holdings Introduces Investor Presentation Strategy
Neutral
Dec 23, 2024
SHF Holdings has announced that beginning December 24, 2024, it will start using an investor presentation for communication with investors and analysts. This presentation, which is part of the company’s SEC filings, is intended for use throughout the fiscal year ending December 31, 2024, and may be updated periodically as needed.
M&A TransactionsLegal Proceedings
SHF Holdings Faces Legal Dispute Over Merger Payment
Negative
Dec 19, 2024
SHF Holdings filed a declaratory judgment complaint in Denver District Court concerning a $3,000,000 merger payment to former stockholders of Rockview Digital Solutions, trading as Abaca. The defendants filed a counterclaim alleging breaches of the merger agreement, focusing on delayed payment and the validity of amendments, and included a third-party claim against the company’s board chairman.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.