AFRMAFRM
US • —
$81.55
P/E
76.11
PEG
—
FCF Yield
—
Rev Growth YoY
+32.1% YoY
Gross Margin
92.5%
Health Score
5/10
D/E Ratio
2.48
Confidence
LOW
Business Snapshot
Affirm Holdings operates as a financial technology company offering a buy now, pay later (BNPL) platform, which allows consumers to finance purchases through installment loans. Its primary revenue streams come from merchant transaction fees and interest income on consumer loans. The company competes in the rapidly growing digital payments and consumer lending market, positioning itself as a challenger to traditional credit cards and other BNPL providers like Klarna and Afterpay. The company is categorised as a mid-cap fintech, though its exact financial scale based on TTM revenue is not available from the data. A defining characteristic is its high gross margin of 92.5%, reflecting a technology-driven, capital-light platform model.
Financial Health
Affirm maintains an exceptionally high gross margin of 92.5%, though a prior-year comparison is not available, and a net margin of 9.6%, indicating profitability at the bottom line. The balance sheet shows a high Debt/Equity ratio of 2.48x, signalling significant leverage, which is a notable risk for a lending-focused company...
Risk Assessment
- VALUATION — P/E of 76.11x is significantly elevated compared to the sector average of 22x, demanding a very high growth premium.
- DEBT / LIQUIDITY — Debt/equity of 2.48x indicates a highly leveraged capital structure, increasing financial risk.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DATA COMPLETENESS — A core fundamental metric (free cash flow) is missing, limiting the depth of the financial analysis....
Affirm maintains an exceptionally high gross margin of 92.5%, though a prior-year comparison is not available, and a net margin of 9.6%, indicating profitability at the bottom line. The balance sheet shows a high Debt/Equity ratio of 2.48x, signalling significant leverage, which is a notable risk for a lending-focused company. However, the current ratio of 4.2x points to strong short-term liquidity, meaning the company has ample current assets to cover its immediate obligations. Free cash flow data is unavailable, preventing an assessment of whether the company is generating cash or burning it. Overall, the financial health is mixed, with strong liquidity and profitability balanced against a high debt load, suggesting limited flexibility for dividends or aggressive reinvestment without increasing financial risk.
- VALUATION — P/E of 76.11x is significantly elevated compared to the sector average of 22x, demanding a very high growth premium. - DEBT / LIQUIDITY — Debt/equity of 2.48x indicates a highly leveraged capital structure, increasing financial risk. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DATA COMPLETENESS — A core fundamental metric (free cash flow) is missing, limiting the depth of the financial analysis.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives