LM Funding America Inc (LMFA) Stock Analysis
Verdict: AVOID
Hyper-dilutive Bitcoin mining pivot is incinerating cash faster than production can scale — bankruptcy or massive dilution is the primary risk.
Investment score: 18/100
Analysis as of
Is LM Funding America Inc stock worth reviewing? The TradeMates thesis
The model recommends AVOID. LMFA is fundamentally broken with an operating margin of -258.8% and a net margin of -304%. The pivot to Bitcoin mining has not yielded profitability; instead, it has increased debt from $763k in 2023 to over $20M by 2025. The stock is in a free-fall with no technical floor.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 5/100 (weight 15%)
- Technical Momentum: 10/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 10/100 (weight 15%)
LM Funding America Inc opportunities and risks
What speaks for LMFA
- Record BTC Production
What speaks against LMFA
- Immediate Liquidity Crisis
Peers and competitors
- MTBLY
- DAIC
- TMMI
- BNZI
- QGSI
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LMFA | n/a | 0.3x | n/a | 22.6% | -264.6% | -424.2% |
| MTBLY | n/a | 0.1x | 3.0x | 74.5% | -3.0% | -53.7% |
| DAIC | n/a | 0.9x | n/a | 39.2% | -730.2% | -278.6% |
| TMMI | n/a | 0.0x | n/a | 0.0% | 0.0% | -8.1% |
| BNZI | n/a | 0.1x | n/a | 79.3% | -233.6% | -2608.4% |
| QGSI | n/a | 307.3x | n/a | 38.8% | -2985.7% | -6.4% |
| Peer median | n/a | 0.1x | n/a | 39.2% | -233.6% | -53.7% |
Frequently asked questions about LM Funding America Inc (LMFA)
Is LMFA stock a good investment?
The TradeMates model rates LM Funding America Inc as AVOID with an investment score of 18/100. The model recommends AVOID. LMFA is fundamentally broken with an operating margin of -258.8% and a net margin of -304%. The pivot to Bitcoin mining has not yielded profitability; instead, it has increased debt from $763k in 2023 to over $20M by 2025. The stock is in a free-fall with no technical floor. This is algorithmic model output, not personal investment advice.
Is LMFA stock a buy?
The TradeMates model verdict for LMFA is AVOID with an investment score of 18/100. Treat this as a model signal to review, not a personal buy recommendation.