- AFRM
- AFFIRM HOLDINGS INC
-
65.64+ 2.64 (+4.19%) 12/20 close, EST
Entry 24.09/17
43.00
Stop-Loss
36.00
Target
24.11/12
56.00
Target Price Achievement
30.23%
- Investing Points
- Stock Attractiveness
[Recommended Stock Earnings Review]
Affirm Holdings, Partnership with Apple Pay and Entry into UK Market... Quarterly Revenue Up 41%
■ Trading Strategy (2024-11-08)
- Investment Rating : Hold
- Recommendation Price: $43
- Current Price: $48.79
- Target Price: $56
- Current Return: +13.47%
■ Key Highlights of the 3Q Earnings
- Growth in GMV and Active Consumers: Gross Merchandise Volume (GMV) reached $7.6 billion, up 35%, with RLTC (Revenue Less Transaction Costs) maintained at 3.8% of GMV. Active consumers increased by 21% YoY to 19.5 million, and active merchants rose by 21% to 320,000.
- Q1 Summary: Revenue was $698 million (+41% YoY), operating loss was $130 million (reduced loss), net loss was $200 million (reduced loss), and adjusted operating margin exceeded 20%.
- Partnership with Apple Pay: Affirm has partnered with Apple Pay to allow consumers to use Affirm for installment payments on iPhone and iPad, diversifying payment options.
- Expansion into UK Market: Affirm has recently entered the UK market, with positive initial feedback. The company expects to be competitive in the UK with long-term loan products (6 months, 12 months), a no-fee policy, and a simple interest structure.
- Expansion of Zero-Interest Promotions: Ahead of the holiday season, Affirm plans to attract consumers through 0% interest promotions, which is expected to positively impact profitability and RLTC.
- 2025 Guidance (July 2024–June 2025): Affirm targets GMV of over $34 billion, with annual revenue expected to increase by at least 20 basis points relative to GMV. The adjusted operating margin is projected to be at least 20%.
Recent Stock Price Trend
■ Previous Trading Strategy
☞ Cash App Driving Performance, Q3 Revenue Expected to Increase by 11%
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The content of DataHero is not a research report and should not be used as the sole basis for investment decisions. All investments carry risk, and past performance of financial products does not guarantee future results or returns.
When investing in financial products, one should always be aware of the possibility of financial loss and investors should carefully consider their investment objectives and risks before investing.
Stock Attractiveness
More 28 / 100 QualityFinancial Ratios
| Profitability(Annualized)24.09/30 | |
|---|---|
| Operating Margin | -21.35% |
| ROA | -4.70% |
| ROE | -16.50% |
| ROIC | -3.20% |
| Stability24.09/30 | |
|---|---|
| Current Ratio | N/A |
| Debt Ratio | 69.87% |
| Receivable | 45D |
| Growth(YoY)24.09/30 | |
|---|---|
| Revenue Growth | 46.55% |
| Net Income Growth | Continued loss |
| R&D/Revenue | 19.92% |
| Valuation24.09/30 | |
|---|---|
| PER | -28.46 |
| PBR | 4.48 |
| PSR | 5.03 |
| EV/EBIDTA | -67.22 |
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