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loanDepot, Inc. (LDI)
NYSE:LDI
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loanDepot
(NYSE:LDI)
40Underperform
loanDepot (LDI) vs. S&P 500 (SPY)
Market Cap
$473.78M
Dividend YieldN/A
Average Volume (3M)1.18M
Price to Earnings (P/E)―
Beta (1Y)2.66
Revenue Growth3.76%
EPS Growth16.19%
CountryUS
Employees4,900
SectorFinancial
Sector Strength84
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-0.53
Shares Outstanding104,724,390
10 Day Avg. Volume1,979,919
30 Day Avg. Volume1,181,694
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.85
Price to Cash Flow (P/CF)2.90
P/FCF Ratio2.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.43Price Target Upside3.62% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
loanDepot Business Overview & Revenue Model
Company DescriptionloanDepot, Inc. (LDI) is a leading provider of consumer lending services, primarily focused on the residential mortgage sector. Founded in 2010 and based in the United States, the company offers a comprehensive suite of loan products, including fixed and adjustable-rate mortgages, refinancing solutions, and home equity loans. loanDepot operates through a combination of direct-to-consumer online platforms and a national network of loan officers, providing tailored lending solutions to meet the diverse needs of its customers.
How the Company Makes MoneyloanDepot generates revenue primarily through the origination and servicing of mortgage loans. The company earns income from loan origination fees, which are charged to borrowers at the initiation of a loan, and from selling the originated loans to investors in the secondary market. Additionally, loanDepot collects servicing fees for managing and processing payments on behalf of investors for the loans it retains on its balance sheet. Significant partnerships with financial institutions and government-sponsored enterprises such as Fannie Mae and Freddie Mac also play a crucial role in facilitating the company's ability to originate and sell a high volume of loans, thereby contributing to its revenue streams.
loanDepot Financial Statement Overview
Summary
loanDepot faces significant financial challenges, with persistent net losses and negative cash flows impacting its overall financial health. While there have been improvements in revenue and debt reduction, the company struggles with profitability and liquidity.Income Statement
loanDepot has shown a fluctuating revenue trajectory with a recent increase in total revenue for 2024. However, the company has been experiencing consistent net losses over the past few years, with a significant net income decline in 2024. The EBIT margin has improved, yet the negative EBITDA for 2024 signifies financial challenges. The gross profit margin remains strong, but overall profitability is a concern.45
Neutral
Balance Sheet
The balance sheet shows improvements in stockholders' equity and a significant reduction in total debt, enhancing the company's equity ratio. However, the debt-to-equity ratio has benefited from reduced debt levels, but the overall equity position remains relatively weak compared to industry standards. The return on equity remains negative due to persistent net losses, indicating challenges in generating returns for shareholders.50
Neutral
Cash Flow
loanDepot's cash flow statement reveals negative operating and free cash flows, which indicate liquidity challenges. The free cash flow has significantly decreased in 2024, and the operating cash flow to net income ratio is unfavorable due to negative net income. The company needs to improve cash generation to ensure financial stability.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.06B | 1.06B | 739.27M | 1.01B | 3.45B | 4.14B | Gross Profit |
| 1.16B | 1.06B | 715.75M | 975.58M | 3.41B | 4.10B | EBIT |
| 254.23M | 723.33M | 0.00 | -56.88M | 156.90M | 4.14B | EBITDA |
| 121.17M | -354.07M | 0.00 | 0.00 | 0.00 | 4.39B | Net Income Common Stockholders |
| -92.29M | -202.15M | -110.14M | -610.38M | 623.15M | 2.01B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 745.86M | 421.58M | 660.71M | 863.96M | 419.57M | 284.22M | Total Assets |
| 6.15B | 6.34B | 6.15B | 7.10B | 11.78B | 10.89B | Total Debt |
| 4.27B | 0.00 | 4.27B | 4.50B | 9.16B | 7.38B | Net Debt |
| 3.52B | -421.58M | 3.61B | 3.63B | 8.74B | 7.10B | Total Liabilities |
| 5.45B | 5.84B | 5.45B | 5.69B | 10.18B | 9.24B | Stockholders Equity |
| 353.18M | 506.61M | 353.18M | 921.47M | 494.24M | 1.66B |
| Cash Flow | Free Cash Flow | ||||
| -1.14B | -891.81M | -194.83M | 4.42B | -1.52B | -2.06B | Operating Cash Flow |
| -1.11B | -865.42M | -174.22M | 4.46B | -1.47B | -2.03B | Investing Cash Flow |
| 466.54M | 495.05M | 165.66M | 667.76M | 296.78M | -27.67M | Financing Cash Flow |
| 391.54M | 0.00 | -226.09M | -4.77B | 1.30B | 2.43B |
loanDepot Technical Analysis
Negative
1.38
Price Trends
1.64
Negative
1.92
Negative
2.08
Negative
Market Momentum
-0.08
Positive
36.04
Neutral
32.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDI, the sentiment is Negative. The current price of 1.38 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.64, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 32.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LDI.
loanDepot Risk Analysis
loanDepot disclosed 68 risk factors in its most recent earnings report. loanDepot reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
loanDepot Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.50B | 3.93 | 10.17% | 6.13% | 3.16% | 16.37% | |
72 Outperform | $6.63B | 10.54 | 14.71% | ― | 22.89% | 39.00% | |
70 Neutral | $327.53B | 13.22 | 9.24% | 2.35% | 13.06% | 4.94% | |
66 Neutral | $5.30B | 17.31 | 8.45% | 1.09% | 42.36% | 110.48% | |
64 Neutral | $14.46B | 10.12 | 8.75% | 4.25% | 17.00% | -11.86% | |
56 Neutral | $28.17B | 83.84 | 4.43% | ― | 30.23% | ― | |
40 Underperform | $473.78M | ― | -31.41% | ― | 3.76% | 16.19% |
* Financial Sector Average
Performance Comparison
LDI
loanDepot
1.38
-1.02
-42.50%
BAC
Bank of America
43.07
6.87
18.98%
WF
Woori Finance Holdings Co
34.39
1.43
4.34%
PFSI
PennyMac Financial
103.01
15.05
17.11%
COOP
Mr Cooper Group
107.30
31.54
41.63%
RKT
Rocket Companies
13.76
0.74
5.68%
loanDepot Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -14.29% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. LoanDepot achieved significant progress with the completion of Vision 2025 and experienced growth in rate lock volume, gain on sale margin, and loan origination volume. However, the company also faced challenges with an increased adjusted net loss, decreased servicing fee income, and higher total expenses.Highlights
Completion of Vision 2025 Strategic Program
LoanDepot successfully completed the Vision 2025 strategic program, which focused on resetting the cost structure and making important investments in people, processes, product, and technology. This led to the company's return to profitability during the third quarter.
Increase in Rate Lock Volume
Pull-through weighted rate lock volume increased by 27% from the previous year, reaching $5.6 billion, reflecting positive impacts from investments in recruiting and developing loan officers.
Improved Gain on Sale Margin
The company's pull-through weighted gain on sale margin was 334 basis points, above the guidance of 295 to 305 basis points, benefiting from wider overall margins and a favorable channel mix shift.
Loan Origination Volume Growth
Loan origination volume reached $7.2 billion, a 34% increase from the prior year's volume of $5.4 billion, driven by increased lock activity due to a temporary decrease in market rates.
Strong Cash Position
LoanDepot ended the quarter with $422 million in cash, maintaining a strong liquidity position despite the challenging market conditions.
Lowlights
Adjusted Net Loss
The company reported an adjusted net loss of $47 million in the fourth quarter, compared to an adjusted net loss of $27 million in the previous year, primarily due to higher volume-related expenses.
Decrease in Servicing Fee Income
Servicing fee income decreased from $132 million in the fourth quarter of 2023 to $108 million in the fourth quarter of 2024, in line with a decrease in the size of the portfolio resulting from second quarter bulk sales.
Increased Total Expenses
Total expenses for the fourth quarter of 2024 increased by $39 million or 13% from the prior year, driven by higher volume-related commissions, direct origination, and marketing expenses.
Company Guidance
During loanDepot's year-end and fourth quarter 2024 earnings call, the company provided guidance on various financial metrics. They reported a pull-through weighted rate lock volume of $5.6 billion for the fourth quarter, a 27% increase from the previous year's $4.4 billion, and within the guidance range of $5.5 billion to $7.5 billion. The pull-through weighted gain on sale margin was 334 basis points, surpassing the guidance of 295 to 305 basis points, and origination volume reached $7.2 billion, a 34% increase from the prior year. For the first quarter of 2025, loanDepot expects pull-through weighted lock volume between $4.8 billion and $5.8 billion and origination volume between $4.5 billion and $5.5 billion. They anticipate a pull-through weighted gain on sale margin of 320 to 340 basis points and a decline in total expenses due to lower volume-related and G&A expenses. The company ended the quarter with $422 million in cash, emphasizing its focus on maintaining a strong liquidity position amidst market challenges.loanDepot Corporate Events
Business Operations and StrategyFinancial Disclosures
loanDepot Reports 9% Revenue Increase for 2024
Positive
Mar 11, 2025
On March 11, 2025, loanDepot announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a 9% increase in annual revenue, reaching $1.06 billion, and a reduction in net losses compared to the previous year. Significant achievements included refinancing corporate debt, expanding joint venture partnerships, and improving operational productivity. Despite a net loss of $202 million for the year, loanDepot’s strategic initiatives under Vision 2025 and Project North Star are expected to position the company for future growth and profitability.
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.