Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin19.5%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin9.9%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
B
Years to Pay Off Debt88.3 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$2.4B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$11.4B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book5.75x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$325M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income59.7%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$239M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Affirm Holdings, Inc.
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. The company's commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time. It has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. The company's merchants represent a range of industries, including sporting goods and outdoors, home and lifestyle, travel and ticketing, electronics, fashion and beauty, equipment and auto, and general merchandise. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.
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. The company's commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time. It has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. The company's merchants represent a range of industries, including sporting goods and outdoors, home and lifestyle, travel and ticketing, electronics, fashion and beauty, equipment and auto, and general merchandise. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Affirm Holdings, Inc. at $73.92.
The business passes only 1 of 6 of Graham's defensive criteria — well below his required standard.
At $73.92, the stock trades at a 694% premium to its Graham Number of $9.31. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Trading at 9.6x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Gross Profit %
65.9%▼
69.4%
Operating Margin %
19.5%▼
20.4%
Net Income %
9.9%▼
11.5%
Diluted EPS
0.30▼
0.37
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$13.1B
$13.0B
N/A
Total Debt
$9.1B▼
$9.2B•
N/A
Working Capital
$11.4B▲
$11.3B•
N/A
Years to Pay Debt
88.35
70.86
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q3 2024
Free Cash Flow
$325M▲
$118M•
N/A
Owner Earnings
$239M
$261M
N/A
CapEx % of Net Income
59.7%
43.0%
N/A
Income Statement
2026
2025
Tax Effect Of Unusual Items
0
0
Tax Rate For Calcs
0
0
Normalized EBITDA
296,201
320,548
Total Unusual Items
0
0
Total Unusual Items Excluding Goodwill
0
0
Net Income From Continuing Operation Net Minority Interest
102,900
129,586
Reconciled Depreciation
75,063
75,593
Reconciled Cost Of Revenue
353,910
343,453
EBITDA
296,201
320,548
EBIT
221,138
244,955
Net Interest Income
-113,762
-111,717
Interest Expense
113,762
111,717
Normalized Income
102,900
129,586
Net Income From Continuing And Discontinued Operation
102,900
129,586
Total Expenses
836,575
893,676
Total Operating Income As Reported
88,429
117,626
Diluted Average Shares
348,097
349,366
Basic Average Shares
337,143
334,271
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
102,900
129,586
Net Income Common Stockholders
102,900
129,586
Net Income
102,900
129,586
Net Income Including Noncontrolling Interests
102,900
129,586
Net Income Continuous Operations
102,900
129,586
Tax Provision
4,476
3,652
Pretax Income
107,376
133,238
Other Income Expense
18,948
15,612
Other Non Operating Income Expenses
18,948
15,612
Special Income Charges
0
0
Restructuring And Mergern Acquisition
0
0
Net Non Operating Interest Income Expense
-113,762
-111,717
Interest Expense Non Operating
113,762
111,717
Operating Income
202,190
229,344
Operating Expense
482,665
550,223
Other Operating Expenses
67,964
96,065
Provision For Doubtful Accounts
196,543
214,153
Selling General And Administration
218,158
240,005
Selling And Marketing Expense
72,854
98,782
General And Administrative Expense
145,304
141,223
Other Gand A
145,304
141,223
Gross Profit
684,855
779,567
Cost Of Revenue
353,910
343,453
Total Revenue
1,038,765
1,123,020
Operating Revenue
1,038,765
1,123,020
Balance Sheet
2026
2025
2024
Ordinary Shares Number
334,846
332,207
Share Issued
334,846
332,207
Net Debt
7,328,773
7,611,687
Total Debt
9,090,749
9,181,844
Tangible Book Value
3,226,690
3,000,801
Invested Capital
12,835,596
12,686,428
Working Capital
11,428,199
11,296,757
Net Tangible Assets
3,226,690
3,000,801
Capital Lease Obligations
38,563
42,277
Common Stock Equity
3,783,410
3,546,861
Total Capitalization
12,835,596
12,686,428
Total Equity Gross Minority Interest
3,783,410
3,546,861
Stockholders Equity
3,783,410
3,546,861
Gains Losses Not Affecting Retained Earnings
-23,594
-16,939
Other Equity Adjustments
-23,594
-16,939
Retained Earnings
-2,743,638
-2,846,538
Additional Paid In Capital
6,550,639
6,410,335
Capital Stock
3
3
Common Stock
3
3
Total Liabilities Net Minority Interest
9,358,170
9,410,038
Total Non Current Liabilities Net Minority Interest
9,153,048
9,238,628
Other Non Current Liabilities
62,299
56,784
Derivative Product Liabilities
8,174
Long Term Debt And Capital Lease Obligation
9,090,749
9,181,844
Long Term Capital Lease Obligation
38,563
42,277
Long Term Debt
9,052,186
9,139,567
Current Liabilities
205,122
171,410
Payables And Accrued Expenses
205,122
171,410
Current Accrued Expenses
145,532
114,182
Interest Payable
28,456
28,784
Payables
59,590
57,228
Accounts Payable
59,590
57,228
Total Assets
13,141,580
12,956,899
Total Non Current Assets
1,508,259
1,488,733
Other Non Current Assets
177,157
226,909
Non Current Deferred Assets
7,430
9,574
Non Current Deferred Taxes Assets
7,430
9,574
Financial Assets
34,732
7,676
Investments And Advances
40,396
40,396
Investmentin Financial Assets
40,396
40,396
Available For Sale Securities
40,396
40,396
Goodwill And Other Intangible Assets
556,720
546,060
Other Intangible Assets
27,436
12,619
Goodwill
529,284
533,441
Net PPE
691,824
665,794
Accumulated Depreciation
-660,673
-587,014
Gross PPE
1,352,497
1,252,808
Leases
30,865
25,690
Other Properties
23,532
25,904
Machinery Furniture Equipment
1,298,100
1,201,214
Current Assets
11,633,321
11,468,167
Assets Held For Sale Current
0
6
Restricted Cash
750,892
566,692
Prepaid Assets
110,057
86,598
Receivables
8,291,362
8,563,616
Other Receivables
13,164
Loans Receivable
8,060,659
8,295,439
Accounts Receivable
230,703
268,177
Allowance For Doubtful Accounts Receivable
-24,000
-22,500
Gross Accounts Receivable
254,703
290,677
Cash Cash Equivalents And Short Term Investments
2,481,010
2,251,255
Other Short Term Investments
757,597
723,375
Cash And Cash Equivalents
1,723,413
1,527,880
Cash Flow
2026
2025
2024
Free Cash Flow
325,096
118,034
Repayment Of Debt
-11,895,305
-8,057,934
Issuance Of Debt
11,808,005
9,292,589
Capital Expenditure
-61,405
-55,704
Interest Paid Supplemental Data
108,438
102,537
Income Tax Paid Supplemental Data
1,552
484
End Cash Position
2,474,305
2,094,572
Beginning Cash Position
2,094,572
2,097,610
Effect Of Exchange Rate Changes
-3,582
1,642
Changes In Cash
383,315
-4,680
Financing Cash Flow
-152,626
1,186,580
Cash Flow From Continuing Financing Activities
-152,628
1,186,580
Net Other Financing Charges
-103,908
-57,345
Proceeds From Stock Option Exercised
38,582
9,270
Net Issuance Payments Of Debt
-87,300
1,234,655
Net Long Term Debt Issuance
-87,300
1,234,655
Long Term Debt Payments
-11,895,305
-8,057,934
Long Term Debt Issuance
11,808,005
9,292,589
Investing Cash Flow
149,440
-1,364,997
Cash Flow From Continuing Investing Activities
149,440
-1,364,996
Net Other Investing Changes
237,820
-1,451,609
Net Investment Purchase And Sale
-26,975
142,316
Sale Of Investment
303,515
210,251
Purchase Of Investment
-330,490
-67,935
Net PPE Purchase And Sale
-61,405
-55,704
Purchase Of PPE
-61,405
-55,704
Operating Cash Flow
386,501
173,738
Cash Flow From Continuing Operating Activities
386,502
173,735
Change In Working Capital
118,650
-111,660
Change In Other Current Assets
3,850
-69,985
Change In Payables And Accrued Expense
79,246
-52,729
Change In Accrued Expense
28,937
11,524
Change In Interest Payable
-128
3,433
Change In Payable
50,309
-64,253
Change In Account Payable
2,362
-791
Change In Receivables
35,554
11,054
Changes In Account Receivables
35,554
11,054
Other Non Cash Items
-213,191
-264,586
Stock Based Compensation
73,837
77,800
Provisionand Write Offof Assets
196,543
214,153
Amortization Of Securities
-7,798
-8,313
Depreciation Amortization Depletion
75,063
75,593
Depreciation And Amortization
75,063
75,593
Operating Gains Losses
40,497
61,165
Gain Loss On Investment Securities
40,497
61,207
Net Income From Continuing Operations
102,900
129,586
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $783M▲ $1.0B+32.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 65.4%▲ 65.9%+0.5pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 25.8%▲ 19.5%-6.4pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 0.4%▲ 9.9%+9.5pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.0B/qtr (≈$4.2B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
56.71x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$325M
vs Positive
Operating Cash Flow
$387M
Latest quarter · Buffett's cash reality check
ROIC
1.2%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
5.8x
Net Assets: $3.8B
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Credit Services. You can manually compare AFRM against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
4.34%
Moderate — some alignment with shareholders
Return on Equity (ROE)
2.7%
Weak — poor returns on equity
Return on Assets (ROA)
0.8%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$250M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-1.0% YoY
Debt is declining — management is deleveraging
Leadership Team
Max Roth Levchin
Founder, CEO & Chairman
Age 49
Pay: $538,307
0.523% of net income
Libor Michalek
President & Director
Age 51
Pay: $1,070,360
1.040% of net income
Robert O'Hare
Chief Financial Officer
Age 44
Pay: $915,439
0.890% of net income
Michael Linford
Chief Operating Officer
Age 42
Pay: $1,070,360
1.040% of net income
Pat Suh
Senior Vice President of Revenue
Top Institutional Holders
Institution
% Owned
Shares
Capital Research Global Investors
8.35%
24,592,033
Capital World Investors
7.65%
22,512,923
Morgan Stanley
7.38%
21,715,982
Blackrock Inc.
6.36%
18,732,493
FMR, LLC
5.88%
17,294,381
Vanguard Capital Management LLC
4.13%
12,152,375
Vanguard Portfolio Management LLC
3.94%
11,599,993
State Street Corporation
2.05%
6,031,141
⚠️Very high beta — extreme price volatility
Risk Analysis
Beta (Market Risk)
3.70
High volatility — moves more than the market
Short Interest
6.5% of float
Moderate short interest
Debt-to-Equity
2.40x
High leverage — significant financial risk
Current Ratio
13.54x
Strong liquidity — Graham approved
52-Week Price Range
Low: $42.09Current: $73.92High: $100.00
Currently at 55% of 52-week range
Affirm Holdings, Inc. (AFRM) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $9.31. Margin of safety: 0%. Gross profit margin: 65.9%. Operating margin: 19.5%. Net margin: 9.9%. Market cap: $24.8B. Sector: Financial Services. Industry: Credit Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.