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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Finance of America has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Finance of America Companies Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Finance of America's interest coverage with the available data.
Finance of America's debt to revenue ratio for the quarter that ended in Jun. 2026 was 231.47.
Altman Z-Score does not apply to banks and insurance companies.
Finance of America (NYSE:FOA) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Finance of America has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Finance of America Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Finance of America (FOA) has a Financial Strength of 2 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Finance of America and its competitors. This is near median its historical median of 2.00. Over the past decade, Finance of America's Financial Strength has ranged from 1.00 to 4.00.
Is Finance of America's Financial Strength too high?
Finance of America's current Financial Strength of 2 is near median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 4.00. Overall, Finance of America has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Finance of America's Financial Strength compare to LX and CPSS?
Finance of America's Financial Strength of 2 can be compared against companies in the Credit Services industry. Historically, Finance of America's own Financial Strength has ranged from 1.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Credit Services company?
A good Financial Strength depends on the Credit Services industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Finance of America and its competitors. Finance of America's current Financial Strength is 2, which is near median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finance of America stock overvalued right now?
Based on GuruFocus' analysis, Finance of America (FOA) is currently considered Possible Value Trap. The stock's GF Value™ is $23.36, compared to a current price of $15.96 — trading 31.7% below its estimated fair value. The current Financial Strength is 2, which is near median its 10-year median of 2.00. Finance of America's overall GF Score™ is 49/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Finance of America (FOA), the current Financial Strength is 2 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Finance of America (FOA) Overvalued in 2026?
Based on GuruFocus' analysis, Finance of America stock appears to be undervalued.
The current stock price of $15.96 is trading 31.7% below its estimated GF Value™ of $23.36.
GuruFocus considers Finance of America to be Possible Value Trap.
Key valuation signals for FOA:
Financial Strength: 2 (near median its 10-year median of 2.00)
GF Value™: $23.36 vs. price of $15.96 (31.7% below fair value)
No single metric tells the full story. See the FOA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Finance of America Companies Inc provides home equity-based financing solutions for modern retirement and offers capital markets and portfolio management capabilities to optimize loan distribution to investors. The Company operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment handles loan origination, including HECM and non-agency reverse mortgage loans, generating revenue from origination fees and initial gains, with loans transferred to the Portfolio Management segment. The Portfolio Management segment, which generates the majority of revenue, provides securitization, loan sales, risk management, and asset management services, and earns revenue from net interest income, fair value changes, and servicing-related income.
49GF Score
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