Finance Of America Companies Inc. (FOA)
Valuation Overview•Is Finance Of America Companies Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 42/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
FOA struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 23.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $509.1M | +9.2% | — | — | — | |
| EBITDA | $46.1M | — | — | — | — | |
| Net Income | $17.5M | +192.1% | — | — | — | |
| EPS (Diluted) | $1.77 | +139.7% | — | -46.7% | — | |
| Free Cash Flow | -$130.9M | -1.4% | — | +9.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 35.9% | 14.8% | 27.0% | 45.5% |
| Operating Margin | 23.5% | -1.0% | -7.5% | -0.5% |
| Net Margin | 1.6% | -0.7% | -9.8% | -2.5% |
| FCF Margin | -22.4% | -15.5% | 29.9% | 25.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.84 | $1.10 | +31.0% | ||
| Q1'26 | $0.65 | $0.69 | +6.6% | ||
| Q4'25 | $0.65 | $1.33 | +105.6% | ||
| Q3'25 | $0.61 | $0.55 | -9.5% | ||
| Q2'25 | $0.42 | $0.52 | +23.8% | ||
| Q1'25 | $0.45 | $0.21 | -53.3% | ||
| Q4'24 | $0.13 | $0.67 | +415.4% | ||
| Q3'24 | $-0.20 | $-0.05 | +75.0% |
Total return is -2.7% (1Y), lagging the benchmark by -23.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -4.4% | -11.7% | — |
| 1Y | -2.7% | -23.6% | — |
| 3YCAGR | +1.9% | -16.9% | — |
| 5YCAGR | -23.7% | -35.3% | — |
| 10YCAGR | -14.0% | -27.9% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Finance Of America Companies Inc. (FOA) valuation, health, and returns.
Based on peer relative multiples, Finance Of America Companies Inc. appears Cheap versus peers compared to industry peers.
Finance Of America Companies Inc. has multiple valuation anchors: Peer Relative Fair Value: $38.73 | Wall Street Analyst Target: $29.50 (implying +21.9% upside). A convergence of these signals offers higher conviction.
Finance Of America Companies Inc. displays fair financial health with a composite quality score of 42/100, supported by a Altman Z-Score of -1.1 (distress zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 0.3%.
Finance Of America Companies Inc. returns capital via buybacks instead of dividends, carrying a 18.7% buyback yield and reducing outstanding shares by -14.6% in the last 12 months.
Finance Of America Companies Inc.'s current growth trajectory is Stable. The company achieved +9.2% 1Y revenue growth and +139.7% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 5 analysts, beating EPS expectations in 58% of recent quarters with a 3-quarter streak. The consensus price target represents a +21.9% change from current levels.
Investment risks for Finance Of America Companies Inc. include: -45.1% 1-year max drawdown, high beta (1.66x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.66x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.