Finance of America Companies Inc (FOA) Stock Analysis
Verdict: AVOID
Severe balance-sheet leverage and relentless insider selling override cheap P/B asset valuation amid rising liquidity risks near 52-week lows.
Investment score: 25/100
Analysis as of
Is Finance of America Companies Inc stock worth reviewing? The TradeMates thesis
The TradeMates model issues an AVOID recommendation for Finance of America Companies Inc due to extreme balance-sheet debt leverage, poor working capital ratios, and executive insider selling despite trading near 52-week lows.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 15/100 (weight 15%)
- Technical Momentum: 10/100 (weight 15%)
- Earnings Quality: 35/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 15/100 (weight 15%)
Finance of America Companies Inc opportunities and risks
What speaks for FOA
- Deep discount to net book value
What speaks against FOA
- Critical liquidity and debt balance sheet strain
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| FOA | n/a | 0.1x | n/a | 39.2% | -0.0% | -425.9% |
| ONIT | 2.1x | 0.2x | 32.0x | 73.3% | 11.8% | -796.9% |
| LDI | n/a | 0.2x | 27.3x | 90.5% | -4.7% | -118.3% |
| SNFCA | 5.5x | 0.8x | 2.8x | 70.1% | 15.0% | 40.8% |
| BETR | n/a | 0.9x | n/a | 79.1% | -85.0% | -120.8% |
| GHI | n/a | 2.0x | 406.3x | 29.9% | -5.9% | 3401.4% |
| Peer median | n/a | 0.8x | 27.3x | 73.3% | -4.7% | -118.3% |
Frequently asked questions about Finance of America Companies Inc (FOA)
Is FOA stock a good investment?
The TradeMates model rates Finance of America Companies Inc as AVOID with an investment score of 25/100. The TradeMates model issues an AVOID recommendation for Finance of America Companies Inc due to extreme balance-sheet debt leverage, poor working capital ratios, and executive insider selling despite trading near 52-week lows. This is algorithmic model output, not personal investment advice.
Is FOA stock a buy?
The TradeMates model verdict for FOA is AVOID with an investment score of 25/100. Treat this as a model signal to review, not a personal buy recommendation.