Affirm Holdings, Inc. (AFRM) on Decifer

Why it ranks here

• It earns strong returns on the money it puts to work, around 16% and those returns have been improving.
• Revenue is expected to grow about 25% a year, profits grew 3,500% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, with profitability widening as it grows.
• It is riding an active market tailwind but its balance sheet leaves little room to fund growth.
• We do not have a clean read on how it is run yet.
• Our durability check found pressure on this name, which costs it a few points.
• AFRM is one of 1 credible suppliers of point-of-sale credit rails for the thesis: Retail and institutional capital trades, hedges and pays on always-on, low-cost electronic rails whose volumes rise with volatility and participation, whatever the fate of US crypto law. Pricing of this thesis has not been assessed.

The current read

The evidence on AFRM lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Read the full AFRM research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.