Affirm Holdings Inc. Class A Common Stock (AFRM)
StalwartFairStock Score: 34/100 — RISKY
Key Financials
| Current Price | $65.82 |
| Market Cap | $21.1B |
| P/E Ratio | 59.84 |
| ROE | 11.49% |
| Dividend Yield | —% |
| Sector | Financial Services |
Strengths
- Generates $457 million in annual free cash flow (2.2% yield on market cap)
- Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- Revenue growth of 29.6% demonstrates strong top-line momentum
Concerns
- Trades significantly above Graham Number ($14) with negative 354% margin of safety—limited downside protection
- High leverage at 2.59x debt-to-equity increases financial risk and interest expense burden
AI Analysis
Affirm Holdings Inc. Class A Common Stock is a mid-cap financial services company valued at $21.1 billion. The business generates $3.7 billion in annual revenue with a 3.5% net margin and $457 million in free cash flow. From a quality standpoint, Affirm shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.2 in the grey zone. On valuation, the stock is commanding a steep 77.8x multiple, with trades far above its Graham Number ($14) with no margin of safety. Growth dynamics show revenue growing at 29.6% and profit growth of 61.3%. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Affirm's 30% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $457 million in annual free cash flow (2.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 78x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer