Education
About Us
Working with TipRanks
Follow Us
Lexinfintech (LX)
:LX
Top Page
Lexinfintech Holdings
(NASDAQ:LX)
77Outperform
Lexinfintech Holdings (LX) vs. S&P 500 (SPY)
Market Cap
$1.53B
Dividend Yield1.42%
Average Volume (3M)3.73M
Price to Earnings (P/E)13.8
Beta (1Y)2.01
Revenue Growth7.21%
EPS Growth-46.18%
CountryUS
Employees4,268
SectorFinancial
Sector Strength77
IndustryCredit Finance
Share Statistics
EPS (TTM)0.62
Shares Outstanding128,741,780
10 Day Avg. Volume3,410,175
30 Day Avg. Volume3,733,255
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.82
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.40Price Target Upside-52.59% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Lexinfintech Holdings Business Overview & Revenue Model
Company DescriptionLexinfintech Holdings Ltd. engages in the provision of online consumer finance platforms. Through its subsidiaries, it provides online direct sales with installment payment terms; installment purchase loans; and personal installment loans. Its services are offered though its online consumer finance platform, www.fenqile.com; and mobile application. The company was founded by Wen Jie Xiao and Qian Qiao on November 22, 2013 and is headquartered in Shenzhen, China.
How the Company Makes MoneyLexinfintech Holdings makes money through the origination and servicing of consumer loans. The company's revenue model is primarily based on the fees and interest generated from these loans. Key revenue streams include loan facilitation fees, which are charged to borrowers as a percentage of the loan amount, and interest income from the credit lines offered. The company also earns from providing user acquisition and risk management services to financial institutions. Significant partnerships with banks and other financial institutions enhance its ability to offer competitive products and manage financial risks effectively, contributing to its earnings.
Lexinfintech Holdings Financial Statement Overview
Summary
Lexinfintech Holdings demonstrates a strong financial recovery with improved profitability and cash generation. The income and cash flow statements reflect positive momentum, but the balance sheet reveals concerns about leverage, which need careful management.Income Statement
Lexinfintech Holdings has shown a notable improvement in revenue and profitability in the most recent year. The gross profit margin improved significantly from the previous year, and the company turned its EBIT from negative to positive, indicating better operational efficiency. However, the revenue growth over the five-year period was inconsistent, with a decrease in 2021. The net profit margin is healthy, demonstrating the company's ability to convert revenue into profit effectively.75
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, indicating some reliance on debt financing but not excessively so. The return on equity has improved, showing better utilization of equity to generate profits. Although the equity ratio suggests a stable financial structure, the high total liabilities relative to assets remain a concern, which could pose risks if cash flows weaken.65
Positive
Cash Flow
Cash flow analysis shows significant recovery in operating cash flow, marking a positive turnaround from previous periods. The company's free cash flow growth is remarkable, indicating improved cash generation capabilities. The ratio of operating cash flow to net income is strong, reflecting efficient cash conversion. However, the history of fluctuating free cash flow in earlier years suggests potential volatility.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.90B | 13.06B | 9.87B | 11.38B | 11.65B | 10.60B |
| Gross Profit | |||||
| 5.16B | 4.51B | 3.03B | 5.75B | 3.63B | 4.99B |
| EBIT | |||||
| 2.68B | 1.88B | -347.81M | 3.04B | 1.42B | 2.70B |
| EBITDA | |||||
| 2.58B | 1.52B | 1.23B | 2.98B | 1.53B | 2.83B |
| Net Income Common Stockholders | |||||
| 810.88M | 1.07B | 819.75M | 2.33B | 594.98M | 2.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.29B | 2.82B | 1.49B | 2.66B | 1.56B | 2.09B |
| Total Assets | |||||
| 24.60B | 23.14B | 22.77B | 21.03B | 20.35B | 19.24B |
| Total Debt | |||||
| 10.02B | 5.51B | 9.10B | 7.48B | 9.26B | 8.23B |
| Net Debt | |||||
| 7.73B | 2.89B | 7.61B | 4.82B | 7.70B | 6.14B |
| Total Liabilities | |||||
| 15.58B | 13.43B | 14.12B | 12.96B | 14.81B | 12.64B |
| Stockholders Equity | |||||
| 9.01B | 9.71B | 8.65B | 8.03B | 5.49B | 6.60B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 2.56B | -49.97M | 2.55B | -297.59M | -828.37M |
| Operating Cash Flow | |||||
| 0.00 | 2.79B | 98.84M | 2.67B | -211.02M | -778.50M |
| Investing Cash Flow | |||||
| 0.00 | 2.33B | -2.41B | 414.62M | -2.14B | -783.58M |
| Financing Cash Flow | |||||
| 0.00 | -3.85B | 1.11B | -1.78B | 1.23B | 3.06B |
Lexinfintech Holdings Technical Analysis
Positive
9.28
Price Trends
7.60
Positive
5.90
Positive
3.88
Positive
Market Momentum
0.41
Positive
57.59
Neutral
52.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Positive. The current price of 9.28 is above the 20-day moving average (MA) of 8.70, above the 50-day MA of 7.60, and above the 200-day MA of 3.88, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 52.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LX.
Lexinfintech Holdings Risk Analysis
Lexinfintech Holdings disclosed 106 risk factors in its most recent earnings report. Lexinfintech Holdings 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
Lexinfintech Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $587.02M | 2.27 | 21.47% | 2.76% | 17.07% | -8.81% | |
83 Outperform | $2.15B | 6.95 | 15.82% | 2.94% | 1.54% | -1.77% | |
82 Outperform | $6.28B | 7.85 | 24.70% | 3.02% | 7.22% | 39.87% | |
77 Outperform | $1.53B | 13.76 | 7.38% | 1.42% | 7.21% | -46.18% | |
76 Outperform | $1.11B | 37.61 | 6.06% | ― | 26.67% | -14.77% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
LX
Lexinfintech Holdings
9.28
7.41
396.26%
YRD
Yiren Digital
6.72
1.52
29.23%
FINV
FinVolution Group
8.26
3.14
61.33%
QFIN
Qifu Technology
40.75
23.28
133.26%
TIGR
Up Fintech Holding
7.07
2.10
42.25%
LXEH
Lixiang Education Holding Co
9.35
-40.35
-81.19%
Lexinfintech Holdings Earnings Call Summary
Earnings Call Date: Nov 25, 2024 | % Change Since: 172.94% | Next Earnings Date: Mar 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in loan origination, asset quality, profitability, and customer acquisition efficiency. However, challenges include a decline in e-commerce revenue and increased processing costs. Overall, the positive aspects outweigh the negatives, indicating a strong performance and optimistic outlook.Highlights
Loan Origination and Asset Quality Improvement
In Q3 2024, loan originations reached RMB 51 billion, with an outstanding loan balance of RMB 111.3 billion. The quality of new loans improved, with a decrease in FPD7 by 13% and a reduction in the day 1 delinquency ratio by 9% compared to the previous quarter.
Profitability and Net Profit Growth
Net profit reached RMB 310 million, a 36.7% increase quarter-over-quarter. The net profit margin was 8.45%, up by 223 basis points due to improved asset quality and reduced risk levels.
Record Low Funding Costs
The funding cost reached a new historical low of 4.28%, nearly 100 basis points lower than Q2. This was achieved through partnerships with national financial institutions, reflecting increased confidence in the company's assets.
Customer Acquisition Efficiency
The number of new users with approved credit lines increased by 44% from Q2, while the acquisition cost for these users dropped by 35%.
Dividend Payout Increase
The company plans to raise its dividend payout ratio from 20% to 25% of net profit starting in 2025.
Lowlights
E-commerce Revenue Decline
E-commerce business revenue dropped by 29.5% quarter-over-quarter due to a higher base in Q2 from the 618 Shopping Festival.
Increased Processing and Servicing Costs
Processing and servicing costs rose by 16.1% quarter-over-quarter due to intensified loan collection efforts.
Company Guidance
In the third quarter of 2024, LexinFintech reported significant financial and operational improvements, driven by a comprehensive risk management strategy and market expansion initiatives. Loan originations reached RMB 51 billion, with an outstanding loan balance of RMB 111.3 billion. The company achieved revenue of RMB 3.7 billion and a net profit of RMB 310 million, marking a return to steady growth. The net profit margin improved to 8.45%, up 223 basis points from the previous quarter, facilitated by a 98 basis-point reduction in funding costs. The FPD7 risk indicator for new loans decreased by 13% from the second quarter, while the day 1 delinquency ratio dropped by 9%, reflecting enhanced asset quality. Lexin's efforts to diversify funding sources and optimize customer acquisition resulted in a 24% increase in drawdown customers and a 35% reduction in new customer acquisition costs. The company also launched an Intelligent Credit Platform to leverage AI-driven insights, further improving risk management and profitability. Looking ahead, Lexin plans to increase its dividend payout ratio to 25% in 2025, continuing its commitment to shareholder value creation.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.