Over the past week, Affirm Holdings Inc (AFRM, Financial) has seen a significant increase in its stock price, with a gain of 14.49%. This upward trend extends to the past three months, where the company's stock price has seen a gain of 12.24%. Currently, the company's market cap stands at $6.01 billion, with a stock price of $19.92. However, the GF Value of the company is $42.45, which is significantly higher than the current price. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. This discrepancy between the GF Value and the current price suggests that the stock may be undervalued, indicating a possible value trap for investors.
Unpacking Affirm Holdings Inc
Affirm Holdings Inc operates in the software industry, offering a platform for digital and mobile-first commerce. The company's services include a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The majority of its revenue is generated from the United States, through its merchant networks and virtual card networks. 
Profitability Analysis of Affirm Holdings Inc
When it comes to profitability, Affirm Holdings Inc has a Profitability Rank of 1/10, indicating that the company's profitability is relatively low compared to other companies. The company's Operating Margin is -61.84%, which is better than 14.03% of companies in the same industry. The company's ROE is -38.68%, ROA is -13.10%, and ROIC is -19.52%, all of which are better than a certain percentage of companies in the same industry. 
Growth Analysis of Affirm Holdings Inc
In terms of growth, Affirm Holdings Inc has a 3-Year Revenue Growth Rate per Share of 30.40%, which is better than 84.36% of companies in the same industry. The company's Total Revenue Growth Rate (Future 3Y To 5Y Est) is 21.09%, which is better than 81.75% of companies in the same industry. However, the company's 3-Year EPS without NRI Growth Rate is -66.00%, which is only better than 6.94% of companies in the same industry. 
Major Holders of Affirm Holdings Inc Stock
The top three holders of Affirm Holdings Inc's stock are Baillie Gifford (Trades, Portfolio), Jim Simons (Trades, Portfolio), and Paul Tudor Jones (Trades, Portfolio). Baillie Gifford (Trades, Portfolio) holds the largest number of shares, with 19,409,369 shares, representing 6.56% of the company's stock. Jim Simons (Trades, Portfolio) holds 463,900 shares, representing 0.16% of the company's stock, and Paul Tudor Jones (Trades, Portfolio) holds 149,585 shares, representing 0.05% of the company's stock.
Competitor Analysis of Affirm Holdings Inc
Affirm Holdings Inc operates in a competitive industry, with major competitors including Informatica Inc (INFA, Financial) with a market cap of $6.53 billion, Qualys Inc (QLYS, Financial) with a market cap of $5.55 billion, and Altair Engineering Inc (ALTR, Financial) with a market cap of $4.84 billion.
Conclusion
In conclusion, Affirm Holdings Inc has seen a significant increase in its stock price over the past week and the past three months. However, the company's profitability and growth rates are relatively low compared to other companies in the same industry. The company's stock is held by major investors such as Baillie Gifford (Trades, Portfolio), Jim Simons (Trades, Portfolio), and Paul Tudor Jones (Trades, Portfolio). Despite the competitive nature of the industry, Affirm Holdings Inc has managed to maintain a significant market cap, indicating its potential for future growth.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
