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AFRM Affirm Holdings, Inc. - Fundamental Analysis

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AFRM Stock | Fundamental Analysis & Investment Insights
NASDAQ Financial Services Credit Services
Current Price Live
$51.09
Analyst Target
$84.48
+65.4% Upside
52W High
$100.0
52W Low
$30.9

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AI Analysis

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Confidence Score
78%
Analysis Accuracy
AFRM demonstrates strong deterministic health with a Piotroski F-Score of 7/9, indicating solid operational efficiency and improving profitability. However, the absence of an Altman Z-Score raises concern about bankruptcy risk, particularly given a high Debt/Equity ratio of 2.59. The stock trades at a premium to its Graham Number ($13.95) and intrinsic value ($23.9), reflecting high growth expectations. Despite strong revenue and earnings growth (29.6% and 59.3% YoY), the current price of $51.09 is significantly above fair value estimates, and insider selling activity suggests caution. Analysts remain optimistic with a buy recommendation and a target price of $84.48, but technical trends remain bearish.

Key Strengths

Piotroski F-Score of 7/9 indicates strong financial health and operational improvement
High revenue and earnings growth (29.6% and 59.3% YoY) signal strong top-line momentum
Positive earnings surprise history with an average of 37.94% over the last four quarters
Strong gross margin of 47.78% reflects pricing power and cost control
Analyst consensus remains buy with a target price of $84.48, suggesting upside potential

Key Risks

Debt/Equity ratio of 2.59 is significantly above the sector average of 1.51, indicating elevated financial leverage
Insider selling of $57.23M in the last 6 months signals potential internal skepticism about near-term value
Current price of $51.09 is more than double the Graham Number ($13.95) and intrinsic value ($23.9), suggesting overvaluation
No Altman Z-Score available, which is a critical gap in assessing bankruptcy risk
Technical trend is bearish (0/100), and the stock has declined 35.7% over the past 6 months
AI Fair Value Estimate
Based on comprehensive analysis
$23.9
-53.2% below current price

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