BOUCHERVILLE, Québec & TORONTO - Affirm (NASDAQ: AFRM), a payment network known for empowering consumers, has teamed up with RONA inc., a major Canadian home improvement retailer. This partnership allows eligible RONA customers to make purchases online using Affirm's flexible payment plans.
Customers shopping on rona.ca can now opt for Affirm at checkout, splitting their purchases into biweekly or monthly payments over terms that can extend up to 12 months. Affirm's service promises transparency, showing customers the total cost at the outset with a commitment to no hidden or late fees.
Adam Powell, Chief Digital Officer of RONA inc., expressed excitement over providing customers with more payment choices online, a reflection of the evolving shopping habits among Canadians. Wayne Pommen, Chief Revenue Officer at Affirm, highlighted the benefit of this partnership in offering a transparent way to finance important home improvement projects without the worry of unexpected charges.
The partnership extends Affirm's reach in the Canadian market, joining a network that already includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Samsung (KS:005930) among its 292,000 retail partners. Affirm's commitment to honesty in financial products is echoed in their transparent approach, contrasting with traditional credit options that often include late fees or hidden charges.
RONA, a household name in Canada since 1939, continues to adapt to the changing needs of consumers, emphasizing their commitment to an inclusive and sustainable business model. This collaboration with Affirm is part of RONA's ongoing efforts to enhance customer experience and accessibility.
The payment options provided by Affirm Canada Holdings Ltd. are subject to an eligibility check, purchase amount, and vary by merchant. They also adhere to provincial regulations, with rates ranging from 0-31.99% APR. Some payment plans may require a down payment or an immediate payment upon purchase.
This announcement is based on a press release statement and aims to provide consumers with the latest information on the partnership between Affirm and RONA inc. for flexible, transparent payment solutions.
In other recent news, Affirm Holdings (NASDAQ:AFRM) has amended its credit agreement, boosting its borrowing capacity from $205 million to $330 million and extending the agreement's maturity date. The company also reported a cybersecurity incident at partner bank Evolve Bank & Trust, but assures that its own systems were not compromised.
Affirm Holdings has been the subject of various analyst reviews, with JMP Securities initiating coverage with a Market Perform rating, while Goldman Sachs (NYSE:GS) upgraded Affirm to a 'buy' rating, citing the company's effective credit management.
CFRA maintained a 'sell' rating, projecting future revenue forecasts for the fiscal years 2024 to 2026 at $2.3 billion, $2.7 billion, and $3.2 billion respectively. BTIG initiated coverage with a neutral rating, predicting the company's Gross Merchandise Volume (GMV) to grow at a rate of 25-35% year-over-year. The U.S. Consumer Financial Protection Bureau (CFPB) extended certain consumer protection rules to the BNPL industry, impacting companies like Affirm.
InvestingPro Insights
As Affirm (NASDAQ: AFRM) continues to expand its footprint in the Canadian market through strategic partnerships, like the recent one with RONA inc., investors and consumers alike are taking a closer look at the company's financial health and stock performance. Affirm's commitment to transparency in its payment plans resonates with its approach to financial reporting, providing clear insights into the company's valuation and operational metrics.
With a market capitalization of $8.71 billion, Affirm stands as a significant player in the digital payment space. Despite a challenging economic environment, the company has demonstrated impressive revenue growth, with figures reaching $2.11 billion in the last twelve months as of Q3 2024, marking a 40.05% increase. This growth is further emphasized by a quarterly surge of 51.23% in the same period, showcasing the company's expanding market share and adoption of its payment solutions.
Still, potential investors should be aware of the company's current lack of profitability. Affirm's P/E ratio stands at -12.48, reflecting market expectations of future earnings potential rather than current profitability.
This is corroborated by InvestingPro Tips, which suggest that analysts do not anticipate the company will be profitable this year, and the company has not been profitable over the last twelve months. Moreover, the stock has experienced significant volatility, with a price decline over the last three months and a notable drop of 16.66% in the last month alone.
On a positive note, Affirm's liquid assets have surpassed short-term obligations, indicating a healthy liquidity position which is crucial for sustaining operations and investing in growth opportunities. Moreover, while the company does not pay dividends, it has rewarded investors with a high return over the last year, climbing 73.78%.
For those considering an investment in Affirm, or simply keeping an eye on the company's trajectory, InvestingPro offers a wealth of additional insights. There are 6 more InvestingPro Tips available, which can provide deeper analysis and guidance on the stock's potential. To explore these tips and gain a more comprehensive understanding of Affirm's financial standing, visit InvestingPro. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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