Finance of America Companies Inc (FOA:NYE) 9 Bullish signals detected

STA Research
by: STA Research
Finance of America Companies Inc

Finance of America Companies Inc Stock Analysis:

Based on the Finance of America Companies Inc stock forecasts from 4 analysts, the average analyst target price for Finance of America Companies Inc is USD 5.27 over the next 12 months. Finance of America Companies Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Finance of America Companies Inc is Bullish , which is based on 8 positive signals and 3 negative signals. At the last closing, Finance of America Companies Inc’s stock price was USD 1.71Finance of America Companies Inc’s stock price has changed by -6.04% over the past week, -5.00% over the past month and -73.77% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Disclaimer

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