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Enova International Inc. (ENVA)
:ENVA
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Enova International
(NYSE:ENVA)74Outperform
Positive Factors
Earnings
ENVA's 4Q24 results beat consensus with a 4% increase in adjusted EBITDA and a 16% increase in EPS.
Revenue Growth
Revenue growth was driven by a 25% increase in loan growth as both small business and consumer customers maintained acceptable credit profiles and had stronger demand.
Stock Buybacks
The company repurchased about 309K shares during the quarter and has a new $300M buyback program authorized, indicating strong capital returns.
Negative Factors
Interest Rate Exposure
Roughly 50% of ENVA’s borrowing is variable and tied to SOFR, with potential for annualized EPS upside from interest rate movements.
Market Competition
ENVA should continue to benefit from reduced competition as many smaller, less prudent subprime lenders have failed.
Enova International (ENVA) vs. S&P 500 (SPY)
Market Cap
$2.46B
Dividend YieldN/A
Average Volume (3M)246.62K
Price to Earnings (P/E)13.0
Beta (1Y)1.45
Revenue Growth25.51%
EPS Growth36.96%
CountryUS
Employees1,787
SectorFinancial
Sector Strength93
IndustryCredit Finance
Share Statistics
EPS (TTM)7.44
Shares Outstanding25,793,634
10 Day Avg. Volume249,621
30 Day Avg. Volume246,621
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)N/A
Price to Sales (P/S)1.58
Price to Cash Flow (P/CF)1.40
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$133.00Price Target Upside37.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Enova International Business Overview & Revenue Model
Company DescriptionEnova International, Inc. engages in the provision of online financial services. Its products and services include short-term consumer loan, line of credit accounts, instalment loans, receivables purchase agreements, credit services organization (CSO) program, bank program, and decision management platform-as-a-service and analytics-as-a-service. It caters non-prime credit consumers and small businesses in the United States and Brazil. The company was founded by Albert Goldstein and Alexander Goldstein in 2003 and is headquartered in Chicago, IL.
How the Company Makes MoneyEnova International generates revenue primarily through interest income and fees associated with its lending products. The company offers a diverse portfolio of credit products, including short-term loans, installment loans, and lines of credit, catering to both consumers and small businesses. Enova employs sophisticated risk management models to assess creditworthiness, allowing it to price loans effectively and manage risk. Additionally, the company has developed partnerships with third-party lenders and financial institutions to broaden its reach and enhance its product offerings. Key revenue streams include interest income from loans, origination fees, and service fees. By focusing on the online delivery of its financial products, Enova efficiently reaches a broad audience, optimizing both customer acquisition and retention.
Enova International Financial Statement Overview
Summary
Enova International demonstrates strong financial health, with consistent revenue growth, improved profitability, and effective cash flow management. The balance sheet shows reduced leverage, enhancing financial stability. Continued focus on optimizing margins and maintaining a balanced capital structure will be key to sustaining growth and mitigating risks.Income Statement
Enova International has shown consistent revenue growth, with a notable increase of 25.47% from 2023 to 2024. The gross profit margin remains strong at 100%, indicating efficient cost management. The net profit margin improved from 8.27% in 2023 to 7.88% in 2024, suggesting enhanced profitability, although the slight decrease in net profit margin from the previous year indicates room for improvement. The company's EBIT margin of 21.99% and EBITDA margin of 0.79% in 2024 highlight strong operating performance but suggest potential non-cash charges affecting EBITDA.78
Positive
Balance Sheet
The balance sheet shows a strong equity position with an increasing stockholders' equity. The debt-to-equity ratio has improved, reflecting reduced financial leverage due to zero total debt in 2024 compared to previous years. The return on equity stands at 17.50%, demonstrating efficient use of equity to generate profits. The equity ratio of 22.72% indicates a balanced capital structure but suggests potential risk if asset growth is not sustained.72
Positive
Cash Flow
Enova International's cash flow is robust, with a significant 33.25% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is strong at 7.35, indicating healthy cash generation relative to net income. The free cash flow to net income ratio of 7.14 further emphasizes the company's solid cash flow position, supporting future investments and debt reduction.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.66B | 2.12B | 1.74B | 1.21B | 1.08B | Gross Profit |
| 1.24B | 1.04B | 1.12B | 947.75M | 597.50M | EBIT |
| 584.76M | 422.13M | 383.99M | 413.06M | 107.42M | EBITDA |
| 334.52M | 265.51M | 420.86M | 448.44M | 397.55M | Net Income Common Stockholders |
| 209.45M | 175.12M | 207.42M | 256.30M | 377.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 73.91M | 54.36M | 100.17M | 165.48M | 297.27M | Total Assets |
| 5.27B | 4.59B | 3.78B | 2.76B | 2.11B | Total Debt |
| 3.60B | 2.97B | 2.29B | 1.43B | 1.01B | Net Debt |
| 3.52B | 2.92B | 2.19B | 1.26B | 717.14M | Total Liabilities |
| 4.07B | 3.35B | 2.59B | 1.67B | 1.19B | Stockholders Equity |
| 1.20B | 1.24B | 1.19B | 1.09B | 917.35M |
| Cash Flow | Free Cash Flow | |||
| 1.50B | 1.12B | 850.37M | 442.19M | 711.38M | Operating Cash Flow |
| 1.54B | 1.17B | 894.00M | 471.87M | 740.87M | Investing Cash Flow |
| -1.91B | -1.49B | -1.67B | -980.37M | 83.58M | Financing Cash Flow |
| 318.88M | 526.54M | 724.87M | 365.15M | -535.97M |
Enova International Technical Analysis
Negative
96.41
Price Trends
104.95
Negative
100.75
Negative
86.67
Positive
Market Momentum
-2.72
Positive
30.73
Neutral
14.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENVA, the sentiment is Negative. The current price of 96.41 is below the 20-day moving average (MA) of 106.87, below the 50-day MA of 104.95, and above the 200-day MA of 86.67, indicating a neutral trend. The MACD of -2.72 indicates Positive momentum. The RSI at 30.73 is Neutral, neither overbought nor oversold. The STOCH value of 14.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENVA.
Enova International Risk Analysis
Enova International disclosed 56 risk factors in its most recent earnings report. Enova International reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enova International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $6.40B | 8.10 | 24.70% | 2.92% | 7.22% | 39.87% | |
81 Outperform | $723.97M | 8.98 | 19.28% | ― | -2.78% | 24.39% | |
75 Outperform | $309.49M | 7.60 | 11.40% | 3.81% | 6.73% | 151.08% | |
74 Outperform | $2.46B | 12.96 | 17.19% | ― | 25.51% | 36.96% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
53 Neutral | $1.33B | 26.06 | 3.96% | ― | 3.63% | 27.77% |
* Financial Sector Average
Performance Comparison
ENVA
Enova International
96.41
33.73
53.81%
RM
Regional Management
32.23
10.20
46.30%
WRLD
World Acceptance
126.85
0.87
0.69%
LC
LendingClub
11.85
3.87
48.50%
QFIN
Qifu Technology
43.42
28.68
194.57%
Enova International Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -14.64% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong financial performance with record-breaking results in 2024, driven by impressive growth in both small business and consumer lending segments, improved credit quality, and operational efficiency. However, there are cautious notes regarding potential macroeconomic risks and regulatory changes. Overall, the positive aspects significantly outweigh the concerns.Highlights
Record Revenue and Growth
Enova achieved record levels of revenue, originations, and EPS in 2024, with revenue increasing by 25% year-over-year to $730 million in Q4.
Strong Small Business Lending
Small business lending revenue increased by 36% year-over-year to $286 million in Q4, with originations rising 20% to $1.1 billion.
Consumer Lending Growth
Consumer revenue increased 19% year-over-year to $434 million, with consumer originations up 21% to $602 million in Q4.
Improved Credit Quality
Net charge off ratio declined 80 basis points year-over-year to 8.9%. Both consumer and small business portfolios experienced meaningful decreases in net charge off ratios.
Operational Efficiency
Total operating expenses decreased to 34% of revenue from 37% in Q4 2023, showcasing efficient marketing and scalable operations.
Lowlights
Potential Macroeconomic Risks
While the company is well-positioned, there is a mindful approach to potential macroeconomic changes affecting the business.
Regulatory Challenges
Awaiting potential impacts from regulatory changes such as the small business disclosure rule (1071) and payment provisions of the small dollar rule.
Company Guidance
During the Enova International Fourth Quarter 2024 Earnings Call, the company reported significant financial achievements and offered guidance for 2025. Enova experienced over 20% growth in revenue, originations, adjusted EBITDA, and adjusted EPS compared to 2023, resulting in record levels of revenue, originations, and EPS for the year. Specifically, fourth quarter originations increased by 20% year-over-year to $1.7 billion, with the total loan and finance receivables reaching $4 billion, a 21% increase from the previous year. The portfolio comprised 62% small business loans and 38% consumer loans, with small business lending revenue up by 36% year-over-year to $286 million and consumer revenue up by 19% to $434 million. Marketing expenses remained consistent at 21% of total revenue. The company anticipates a 15% growth in originations and around 25% growth in adjusted EPS for 2025, along with a reduction in cost of funds by approximately 50 basis points from the 2024 rate, assuming stable macroeconomic conditions. Enova plans to maintain its strategy of balanced growth and risk management while continuing its stock repurchase program to enhance shareholder value.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.