LM Funding America (LMFA) AI Stock Analysis

• Market Cap: $8.47M
• Dividend Yield: N/A
• Average Volume (3M): 78.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: -44.43%
• EPS Growth: -64.95%
• Country: US
• Employees: 9
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Credit Services
• EPS (TTM): -1.05
• Shares Outstanding: 5,133,412
• 10 Day Avg. Volume: 134,772
• 30 Day Avg. Volume: 78,126
• PEG Ratio: -0.03
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.69
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 1.28
• 1Y Price Target: $6.00
• Price Target Upside: 279.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

LM Funding America's financial performance is under pressure due to declining revenues and persistent losses, with a score of 33 reflecting these challenges. The technical analysis provides some optimism with a score of 60, indicating slight positive momentum. The valuation score of 40 highlights concerns due to ongoing losses and lack of a dividend. The earnings call score of 52 acknowledges operational improvements but notes significant revenue and net loss challenges. Overall, the stock score of 44 suggests cautious optimism, necessitating significant operational and financial improvements for future growth.

Positive Factors

Financial Performance

LMFA reported 4Q24 results with revenue of $2.0M, beating the estimate of $1.6M and consensus of $1.5M.

Operational Efficiency

Adjusted EBITDA of $3.3M was well above the estimate and consensus for a loss of ($0.2M).

Strategic Acquisition

A critical milestone occurred in December 2024 when LMFA acquired a 15MW mining facility in Oklahoma, enabling direct infrastructure management and lowering costs.

Negative Factors

Price Target Reduction

The 12-month price target is lowered to $4.50 from $6.00, due to LMFA's smaller scale and limited cash position.

Revenue Decline

Revenue declined 51% from $4.1M y/y due to the bitcoin halving in April 2024, which reduced the effective mining output.

Revenue Fluctuation

LMFA reported 3Q24 revenue of $1.3M, down from $3.0M in 2Q24, largely due to a temporary slowdown in bitcoin mining production during the relocation of equipment to lower-cost sites.

LM Funding America Business Overview & Revenue Model

Company Description

LM Funding America, Inc. operates as a specialty finance company. It provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company offers funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. LM Funding America, Inc. was founded in 2008 and is based in Tampa, Florida.

How the Company Makes Money

LM Funding America makes money by purchasing delinquent accounts from community associations at a discounted rate and then collecting the full amount owed from the delinquent property owners. This business model allows the company to generate revenue from the difference between the discounted purchase price and the full collection amount. Additionally, LM Funding America may charge fees for its services, contributing further to its revenue streams. The company's financial performance can also be influenced by the efficiency of its collection processes and its ability to manage and mitigate risks associated with delinquent accounts.

LM Funding America Financial Statement Overview

Summary

LM Funding America faces financial challenges, evidenced by declining revenues, persistent losses, and negative cash flows. The company maintains low leverage, which offers some financial stability but is not translating into profitability. Improvements in operational efficiency and cash management are essential for future performance enhancement.

Income Statement

The company's revenue has shown fluctuations, with a recent decline from 2023 to 2024. The gross profit margin improved in 2024 compared to 2023, but the net profit margin remains negative, indicating ongoing profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies or high costs relative to revenue.

Balance Sheet

The balance sheet shows a high equity ratio, indicating financial stability. However, the return on equity is negative due to continued losses. The debt-to-equity ratio is low, suggesting low leverage, which is positive, but the company needs to turn its equity into profit to improve overall financial health.

Cash Flow

Free cash flow is negative, and there is a significant decline in operating cash flow from 2023 to 2024. The operating cash flow to net income ratio is unfavorable, indicating that cash flow generation does not support reported earnings, posing liquidity risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.00M	12.98M	5.36M	14.02M	1.29M
	Gross Profit
4.01M	-3.22M	4.33M	13.77M	956.58K
	EBIT
-6.46M	-10.06M	-27.80M	5.09M	-4.04M
	EBITDA
-324.97K	-14.88M	-20.87M	4.44M	-4.04M
	Net Income Common Stockholders
-7.32M	-15.94M	-27.88M	4.76M	-4.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.41M	2.40M	4.24M	34.69M	11.55M
	Total Assets
44.05M	37.71M	53.19M	62.10M	12.32M
	Total Debt
7.70M	763.75K	746.00K	182.69K	453.69K
	Net Debt
3.85M	-1.66M	-3.49M	-32.38M	-11.10M
	Total Liabilities
8.70M	2.85M	2.39M	646.34K	849.12K
	Stockholders Equity
37.03M	36.19M	49.19M	60.76M	11.46M
Cash Flow		Free Cash Flow
-13.68M	-5.03M	-24.79M	-14.72M	-3.52M
	Operating Cash Flow
-11.95M	-3.40M	-9.14M	3.49M	-3.52M
	Investing Cash Flow
379.42K	2.30M	-18.89M	-23.96M	1.45M
	Financing Cash Flow
12.54M	-731.03K	-299.03K	41.48M	12.56M

LM Funding America Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMFA, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.60, above the 50-day MA of 1.43, and below the 200-day MA of 2.26, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 24.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMFA.

LM Funding America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.74B	9.83	7.63%	17000.35%	12.34%	-5.32%
PNBK	58 Neutral	$474.79M	―	-84.06%	―	-6.52%	-866.16%
CNFR	48 Neutral	$9.04M	0.43	-251.22%	―	-18.97%	―
LMFA	44 Neutral	$8.47M	―	-40.51%	―	-44.43%	-64.95%
SNTG	39 Underperform	$4.83M	―	-17.86%	―	―	25.25%
AIEV	22 Underperform	$990.14K	―	-8.48%	―	―	-149.24%

LM Funding America Corporate Events

LM Funding America Expands and Strengthens Financial Position

LM Funding America has completed a $7.3 million acquisition of Tech Infrastructure JV I LLC’s assets, enhancing its digital mining capabilities. Furthermore, the company entered a warrant exercise deal, raising $5.1 million by enabling an institutional investor to exercise existing warrants. This move is anticipated to bolster LM Funding’s position in the cryptocurrency mining sector while addressing outstanding loans and leveraging new financial opportunities.

LM Funding America Expands with New Bitcoin Mining Site

LM Funding America, Inc. is set to acquire a 15 MW mining site in Oklahoma for $7.3 million, marking a strategic move to expand its Bitcoin mining operations. This acquisition includes essential infrastructure and is part of LM Funding’s plan to become a vertically integrated Bitcoin mining operation, enhancing its capacity and reducing costs. The deal underscores LM Funding’s commitment to growth in the cryptocurrency mining sector, with plans to optimize current facilities and reinvest in new opportunities.

LM Funding America Announces Key Approvals and Elections

LM Funding America, Inc. held its 2024 Annual Meeting where stockholders approved key proposals, including an Amended and Restated Incentive Plan to increase stock issuance and extend plan terms. Directors were elected, and the appointment of Malone Bailey, LLP as an accounting firm was ratified. Additionally, stockholders approved significant stock issuances under Nasdaq rules and executive compensation, reflecting active shareholder participation in strategic decisions.