(FOA) Finance of America Companies - Overview
Stock: Reverse Mortgages, Home Equity, Securitization, Servicing, Asset Management
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 53.4% |
| Relative Tail Risk | -14.7% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.08 |
| Alpha | -25.47 |
| Character TTM | |
|---|---|
| Beta | 0.984 |
| Beta Downside | 1.137 |
| Drawdowns 3y | |
|---|---|
| Max DD | 77.83% |
| CAGR/Max DD | 0.14 |
Description: FOA Finance of America Companies December 31, 2025
Finance of America Companies Inc. (NYSE:FOA) is a U.S.-based financial services holding firm that specializes in home-equity-based financing for retirees. Founded in 2013 and headquartered in Plano, Texas, the company operates through two primary segments: Retirement Solutions, which originates and securitizes non-agency reverse-mortgage loans, and Portfolio Management, which provides asset-management and servicing oversight for those loan pools.
Key operating metrics that analysts watch include the annual reverse-mortgage origination volume (approximately $2.3 bn in FY 2023), net interest margin (hovering around 2.4 % of loan balance), and the growth rate of assets under management (≈ 12 % YoY). The business is highly sensitive to demographic trends-particularly the aging Baby-Boom cohort-and to macro variables such as mortgage rates and housing price appreciation, which together drive demand for home-equity conversion products.
Given the sector’s exposure to interest-rate volatility and credit-risk considerations, investors should monitor the company’s delinquency rates (currently near 1.8 % on reverse-mortgage assets) and its securitization pipeline, as shifts in these factors can materially affect cash-flow stability. For a deeper dive into FOA’s valuation dynamics, a quick look at ValueRay’s analytical toolkit can surface additional quantitative insights.
Piotroski VR‑10 (Strict, 0-10) 2.0
| Net Income: -3.47m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -0.14 > 1.0 |
| NWC/Revenue: 5627 % < 20% (prev -71.13%; Δ 5698 % < -1%) |
| CFO/TA -0.01 > 3% & CFO -444.5m > Net Income -3.47m |
| Net Debt (29.76b) to EBITDA (451.3m): 65.93 < 3 |
| Current Ratio: 1367 > 1.5 & < 3 |
| Outstanding Shares: last quarter (9.07m) vs 12m ago -8.55% < -2% |
| Gross Margin: 32.12% > 18% (prev 0.15%; Δ 3197 % > 0.5%) |
| Asset Turnover: 6.54% > 50% (prev 6.69%; Δ -0.14% > 0%) |
| Interest Coverage Ratio: 0.24 > 6 (EBITDA TTM 451.3m / Interest Expense TTM 1.70b) |
Altman Z'' 10.00
| A: 3.58 (Total Current Assets 109.79b - Total Current Liabilities 80.3m) / Total Assets 30.66b |
| B: -0.02 (Retained Earnings -643.3m / Total Assets 30.66b) |
| C: 0.01 (EBIT TTM 412.6m / Avg Total Assets 29.80b) |
| D: -0.02 (Book Value of Equity -643.6m / Total Liabilities 30.29b) |
| Altman-Z'' Score: 23.48 = AAA |
Beneish M -4.00
| DSRI: 0.15 (Receivables 15.8m/104.1m, Revenue 1.95b/1.94b) |
| GMI: 0.47 (GM 32.12% / 14.96%) |
| AQI: -2.59 (AQ_t -2.58 / AQ_t-1 1.00) |
| SGI: 1.01 (Revenue 1.95b / 1.94b) |
| TATA: 0.01 (NI -3.47m - CFO -444.5m) / TA 30.66b) |
| Beneish M-Score: -6.32 (Cap -4..+1) = AAA |
What is the price of FOA shares?
Over the past week, the price has changed by -7.47%, over one month by -4.60%, over three months by -5.26% and over the past year by -12.52%.
Is FOA a buy, sell or hold?
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the FOA price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 29.5 | 35.3% |
| Analysts Target Price | 29.5 | 35.3% |
| ValueRay Target Price | 20.8 | -4.4% |
FOA Fundamental Data Overview February 03, 2026
P/S = 0.8107
P/B = 0.6565
Revenue TTM = 1.95b USD
EBIT TTM = 412.6m USD
EBITDA TTM = 451.3m USD
Long Term Debt = 29.26b USD (from longTermDebt, last quarter)
Short Term Debt = 80.3m USD (from shortTermDebt, last quarter)
Debt = 30.16b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 29.76b USD (from netDebt column, last quarter)
Enterprise Value = 30.31b USD (258.0m + Debt 30.16b - CCE 109.8m)
Interest Coverage Ratio = 0.24 (Ebit TTM 412.6m / Interest Expense TTM 1.70b)
EV/FCF = -68.18x (Enterprise Value 30.31b / FCF TTM -444.5m)
FCF Yield = -1.47% (FCF TTM -444.5m / Enterprise Value 30.31b)
FCF Margin = -22.80% (FCF TTM -444.5m / Revenue TTM 1.95b)
Net Margin = -0.18% (Net Income TTM -3.47m / Revenue TTM 1.95b)
Gross Margin = 32.12% ((Revenue TTM 1.95b - Cost of Revenue TTM 1.32b) / Revenue TTM)
Gross Margin QoQ = 91.17% (prev 26.82%)
Tobins Q-Ratio = 0.99 (Enterprise Value 30.31b / Total Assets 30.66b)
Interest Expense / Debt = 1.39% (Interest Expense 418.5m / Debt 30.16b)
Taxrate = 5.60% (2.40m / 42.8m)
NOPAT = 389.5m (EBIT 412.6m * (1 - 5.60%))
Current Ratio = 1367 (out of range, set to none) (Total Current Assets 109.79b / Total Current Liabilities 80.3m)
Debt / Equity = 106.5 (Debt 30.16b / totalStockholderEquity, last quarter 283.2m)
Debt / EBITDA = 65.93 (Net Debt 29.76b / EBITDA 451.3m)
Debt / FCF = -66.94 (negative FCF - burning cash) (Net Debt 29.76b / FCF TTM -444.5m)
Total Stockholder Equity = 289.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.01% (Net Income -3.47m / Total Assets 30.66b)
RoE = -1.20% (Net Income TTM -3.47m / Total Stockholder Equity 289.0m)
RoCE = 1.40% (EBIT 412.6m / Capital Employed (Equity 289.0m + L.T.Debt 29.26b))
RoIC = 1.32% (NOPAT 389.5m / Invested Capital 29.47b)
WACC = 1.38% (E(258.0m)/V(30.42b) * Re(9.54%) + D(30.16b)/V(30.42b) * Rd(1.39%) * (1-Tc(0.06)))
Discount Rate = 9.54% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.80%
Fair Price DCF = unknown (Cash Flow -444.5m)
EPS Correlation: 72.45 | EPS CAGR: 423.7% | SUE: 0.88 | # QB: 2
Revenue Correlation: 65.05 | Revenue CAGR: -1.19% | SUE: 0.84 | # QB: 8
EPS next Quarter (2026-03-31): EPS=0.87 | Chg30d=-0.160 | Revisions Net=-1 | Analysts=1
EPS next Year (2026-12-31): EPS=4.30 | Chg30d=-0.046 | Revisions Net=-1 | Growth EPS=+43.4% | Growth Revenue=+14.3%