Added to YB: 2026-04-30
Pitch date: 2026-04-28
AFRM [neutral]
Affirm Holdings, Inc.
+1.43%
current return
Author Info
Bob’s Payment Stock Substack is a former analyst and portfolio manager. Fundamental buy-and-hold investor. Talking stocks and markets. Focus on Payments, Financial Technology, and Payroll and HCM. Sign up for the newsletter.
Company Info
Affirm Holdings, Inc. operates payment network in the United States, Canada, and internationally. Its platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.
Market Cap
$21.0B
Pitch Price
$62.59
Price Target
N/A
Dividend
N/A
EV/EBITDA
53.48
P/E
79.49
EV/Sales
7.71
Sector
Financial Services
Category
N/A
Affirm: Better, But Is It Good?
AFRM (pass): Largest US BNPL provider w/ blue-chip partners (Shopify, Amazon). Interest-bearing loans now 70% GMV at ~30% weighted avg APR. LTM rev $3.7B, op margin just 3-4% industry-wide. Merchant fees 2.93% GMV vs 2.35% card interchange—costly for merchants. Applied for bank charter to cut funding costs (6.15%). Risks: high customer concentration, cyclical credit (7.7% net charge-off rate), rising competition from PayPal/Block, potential interest rate caps. Trading 36x 2026 EBITDA vs Toast 28x, Block 13x. Pass
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