MeritValue

Lument Finance Trust, Inc.

LFTdata completeness 63%13 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'totalDebt'

The thesis, from the filings

Lument Finance Trust, Inc. earns about 5% on equity, but has diluted owners by 110% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $2.08 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$10.5M1$9.86M2$19.7M3$22.6M4−$2.75M4
Operating cash flow$13.8M5$16.3M6$24.7M7$27.1M8$10.1M8
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$14.7M9$43.9M10$51.2M11$69.2M12$23.1M12
Diluted shares24.9M48.3M52.2M52.3M52.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$41.84
your share of equity
Profit it earned you last year
−$0.52
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $41.84 of net worth that earned you −$0.52 last year.

iii. Is this a good business?
Moat signal · return on equity
5% avg · 5y
FY21 6%FY22 4%FY23 8%FY24 10%FY25 -1%

It earned an average 5% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+110% shares · 5y

Share count is up 110% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$2.08
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$10.5M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-23-009060 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-24-011505 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-25-013886 (NetIncomeLoss)
  4. 10-K · period ending 2024-12-31 · accession 0001547546-26-000005 (NetIncomeLoss)
  5. 10-K · period ending 2021-12-31 · accession 0001628280-23-009060 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2022-12-31 · accession 0001628280-24-011505 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0001628280-25-013886 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2024-12-31 · accession 0001547546-26-000005 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-12-31 · accession 0001628280-23-009060 (CashAndCashEquivalentsAtCarryingValue)
  10. 10-K · period ending 2022-12-31 · accession 0001628280-24-011505 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2023-12-31 · accession 0001628280-25-013886 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2024-12-31 · accession 0001547546-26-000005 (CashAndCashEquivalentsAtCarryingValue)