Affirm HoldingsSTU:78P 82 ROE % is 11.23% as of Mar. 2026. GuruFocus rates STU:78P with a GF Score™ of 82/100. The stock has 7 warning signs investors should review. Among 529 Credit Services companies, Affirm Holdings ranks better than 69% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Affirm Holdings's annualized net income for the quarter that ended in Mar. 2026 was $411.60 Mil. Affirm Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $3,665.14 Mil. Therefore, Affirm Holdings's annualized ROE % for the quarter that ended in Mar. 2026 was 11.23%.
The historical rank and industry rank for Affirm Holdings's ROE % or its related term are showing as below:
STU:78P'
s ROE % Range Over the Past 10 Years
Min: -39.94 Med: -27.24 Max: 1.8
Current: 11.54
During the past 7 years, Affirm Holdings's highest ROE % was 1.80%. The lowest was -39.94%. And the median was -27.24%.
STU:78P's ROE % is ranked better than 69% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs STU:78P: 11.54
Affirm Holdings (STU:78P) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Affirm Holdings ROE % Related Terms
Affirm Holdings ROE % Historical Data
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The historical data trend for Affirm Holdings's ROE % can be seen below:
* 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.
For the Credit Services subindustry, Affirm Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Affirm Holdings ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Affirm Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Affirm Holdings's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Affirm Holdings (STU:78P) has a ROE % of 11.23% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Affirm Holdings and its competitors. According to the industry distribution chart, Affirm Holdings ranks #164 out of 529 companies in the Credit Services industry, placing it in the top 31%.
Is Affirm Holdings' ROE % too high?
Affirm Holdings' current ROE % is 11.23%. The Credit Services industry median ROE % is 6.61. Affirm Holdings' value of 11.23% is 69.9% above this industry median. Based on the distribution chart, Affirm Holdings ranks #164 out of 529 companies in the Credit Services industry, which is above the industry midpoint. Overall, Affirm Holdings has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Affirm Holdings' ROE % compare to SYF and SOFI?
According to the Credit Services industry distribution chart, Affirm Holdings ranks #164 out of 529 companies for ROE %. This puts Affirm Holdings in the upper half of its industry. The industry median ROE % is 6.61. Affirm Holdings' value of 11.23% is 69.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Affirm Holdings's current ROE % of 11.23% is 69.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Affirm Holdings and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Affirm Holdings's current ROE % is 11.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Affirm Holdings stock overvalued right now?
Affirm Holdings (STU:78P) has a current ROE % of 11.23%. The current ROE % is 11.23% and 69.9% above the Credit Services industry median of 6.61. Affirm Holdings' overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Affirm Holdings (STU:78P), the current ROE % is 11.23% as of Mar. 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.
Founded in 2012, Affirm is a market leader in the buy now, pay later space with around $36 billion in transaction volume in fiscal 2025. Affirm offers both zero-interest financing, which is merchant subsidized, and interest-bearing loans, which function as personal loans that are approved on a per-transaction basis. Over 70% of Affirm's transaction volume comes from its interest-bearing loans, which also constitute the majority of its revenue. Affirm primarily operates in the United States, which accounted for more than 95% of its revenue in 2025, but it has also expanded to Canada and the United Kingdom.
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