Asta Funding, Inc. :ASFI-US: Earnings Analysis: 2016 By the Numbers : December 16, 2016

Asta Funding, Inc. reports financial results for the year ended September 30, 2016.

We analyze the earnings along side the following peers of Asta Funding, Inc. – SLM Corp, Encore Capital Group, Inc., QC Holdings, Inc., CIT Group Inc., J.G. Wentworth Company Class A and PRA Group Inc (SLM-US, ECPG-US, QCCO-US, CIT-US, JGWE-US and PRAA-US) that have also reported for this period.

Highlights

  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016 2015 2014 2013 2012
Relevant Numbers (Annual)
Revenues 50.93 37.03 31.14 42.41 44.5
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings 7.86 2.02 5.9 2.74 10.04
Earnings Growth (YOY) 289.88 -65.84 115.52 -72.72 -4.6
Net Margin 15.43 5.44 18.95 6.46 22.55
EPS 0.64 0.15 0.45 0.21 0.7
Return on Equity 4.33 1.11 3.36 1.62 5.88
Return on Assets 3.19 0.89 2.78 1.24 4.17

Access our Ratings and Scores for Asta Funding, Inc.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from 13.10% to 26.64% and (2) one-time items. The company’s pretax margins are now 26.56% compared to 13.10% for the same period last year.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Asta Funding, Inc.

Company Profile

Asta Funding, Inc. is a consumer receivable asset management company, which specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. It operates through following segments: Consumer receivables, Personal injury claims, Structured settlements and GAR Disability Advocates. The Consumer receivables segment is engaged in the business of purchasing, managing for its own account and servicing distressed consumer receivables, including charged off receivables, semi-performing receivables and performing receivables. The Personal injury claims segment operates through Pegasus Funding, LLC, which purchases interests in personal injury claims from claimants who are a party to personal injury litigation. The Structured settlements segment through CBC Settlement Funding, LLC. purchases periodic structured settlements and annuity policies from individuals in exchange for a lump sum payment. The GAR Disability Advocates segment is a social security benefit and disability advocacy group, which obtains and represents individuals in their claims for social security disability and supplemental security income benefits from the Social Security Administration. Asta Funding was founded by Arthur Stern on July 7, 1994 and is headquartered in Englewood Cliffs, NJ.

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