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Affirm (AFRM) Stock Analysis

This is a peer-relative look at Affirm (AFRM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Affirm (AFRM)
Profile ItemAFRM
NameAffirm Holdings, Inc.
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryFinancial Services
GICS Sub-IndustryTransaction & Payment Processing Services
Market Capitalization23.09 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJanuary 13, 2021
Security TypeCommon Stock

Price Performance

Cumulative Growth

AFRM
GSPC
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Affirm (AFRM) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Affirm (AFRM) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Affirm (AFRM) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
Total Return (1Y)-6.89%1.90%
Total Return (3Y, Annualized)40.23%12.71%
Total Return (5Y, Annualized)-15.36%2.81%

Risk Profile

Drawdown History

AFRM
GSPC
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Affirm (AFRM) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Affirm (AFRM) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
Volatility (1Y, Annualized)58.20%36.24%
Beta (5Y)3.701.04
Max Drawdown (5Y)-94.35%-48.56%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. AFRM is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
Sharpe Ratio (1Y)-0.19-0.09
Sortino Ratio (1Y)-0.28-0.13

Profitability

ROE (TTM)

Affirm (AFRM) posts ROE of 44.49%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

AFRM

Financial Services industry group

44.49%

Group distribution
Max
44.78%
AFRM
44.49%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
Largest peers
MA
231.37%
V
63.51%
AFRM
44.49%
MS
18.04%
GS
17.71%
BRK.A
12.12%
BRK.B
12.12%
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Where Affirm (AFRM) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Affirm (AFRM) keeps 43.86% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

AFRM

Financial Services industry group

43.86%

Group distribution
Max
62.84%
AFRM
43.86%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
Largest peers
V
51.20%
MA
46.73%
AFRM
43.86%
GS
31.21%
MS
25.63%
BRK.A
22.30%
BRK.B
22.30%
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Where Affirm (AFRM) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Affirm (AFRM) turns 14.82% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

AFRM

Financial Services industry group

14.82%

Group distribution
Max
107.33%
Q3
55.90%
Median
30.09%
AFRM
14.82%
Q1
14.60%
Min
-44.34%
Largest peers
V
63.73%
MA
60.53%
MS
39.00%
GS
38.37%
BRK.A
32.56%
BRK.B
32.56%
AFRM
14.82%
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Where Affirm (AFRM) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
ROE (TTM)44.49%12.91%
ROA (TTM)2.42%3.60%
Net Margin (TTM)43.86%15.36%
Operating Margin (TTM)14.82%30.09%
Gross Margin (TTM)----

Growth

Revenue Growth

Affirm (AFRM) grew revenue 32.15%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Affirm (AFRM): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Affirm (AFRM) grew earnings per share 3,586.67%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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Affirm (AFRM): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
Revenue Growth (YoY)32.15%9.46%
Revenue Growth (3Y CAGR)38.96%10.90%
EPS Growth (YoY)3,586.67%7.46%
EPS Growth (3Y CAGR)--13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Affirm (AFRM) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Affirm (AFRM) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Affirm (AFRM) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

AFRM

Financial Services industry group

0.00%

Group distribution
Max
9.77%
Q3
3.92%
Median
1.09%
AFRM
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MS
2.40%
GS
2.07%
V
0.66%
MA
0.53%
AFRM
0.00%
BRK.A
0.00%
BRK.B
0.00%
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Where Affirm (AFRM) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Affirm (AFRM) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

AFRM

Financial Services industry group

0.00%

Group distribution
Max
241.07%
Q3
97.36%
Median
25.77%
AFRM
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.91%
GS
25.88%
V
21.75%
MA
17.63%
AFRM
0.00%
BRK.A
0.00%
BRK.B
0.00%
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Where Affirm (AFRM) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
Dividend Yield (TTM)0.00%1.09%
Dividend Payout Ratio (TTM)0.00%25.77%

Valuation

P/E Ratio (TTM)

Affirm (AFRM) trades at P/E ratio of 11.80, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

AFRM

Financial Services industry group

11.80

Group distribution
Max
45.85
Q3
24.64
Median
15.37
AFRM
11.80
Q1
9.68
Min
0.16
Largest peers
V
34.31
MA
34.15
MS
14.39
BRK.A
14.36
BRK.B
14.36
GS
12.45
AFRM
11.80
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Where Affirm (AFRM) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Affirm (AFRM) trades at 5.03 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

AFRM

Financial Services industry group

5.03

Group distribution
Max
9.23
AFRM
5.03
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
Largest peers
V
17.18
MA
15.67
AFRM
5.03
MS
3.55
GS
3.52
BRK.A
3.18
BRK.B
3.18
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Where Affirm (AFRM) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Affirm (AFRM) trades at 4.01 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

AFRM

Financial Services industry group

4.01

Group distribution
Max
7.79
AFRM
4.01
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
Largest peers
MA
84.30
V
22.05
AFRM
4.01
MS
2.65
GS
2.36
BRK.A
1.72
BRK.B
0.00
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Where Affirm (AFRM) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Affirm (AFRM) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AFRMIndustry group median
P/E Ratio (TTM)11.8015.37
P/S Ratio (TTM)5.032.72
P/B Ratio (MRQ)4.011.57
Free Cash Flow Yield (TTM)----