Lexinfintech Holdings (LX) AI Stock Analysis

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Lexinfintech Holdings

(NASDAQ:LX)

77Outperform

Lexinfintech Holdings demonstrates strong financial performance with robust revenue growth and profitability. The technical indicators support a positive outlook, while the earnings call reveals a strategic focus on growth and risk management. Despite this, challenges in cash flow and legacy loans persist, warranting attention.

Lexinfintech Holdings (LX) vs. S&P 500 (SPY)

Market Cap

$1.09B

Dividend Yield1.82%

Average Volume (3M)4.91M

Price to Earnings (P/E)7.4

Beta (1Y)1.41

Revenue Growth10.06%

EPS Growth0.04%

CountryUS

Employees4,268

SectorFinancial

Sector Strength86

IndustryFinancial - Credit Services

Share Statistics

EPS (TTM)0.90

Shares Outstanding128,741,780

10 Day Avg. Volume5,361,719

30 Day Avg. Volume4,912,546

Financial Highlights & Ratios

PEG Ratio170.50

Price to Book (P/B)N/A

Price to Sales (P/S)1.03

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

$13.60

Price Target Upside104.20% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Lexinfintech Holdings Business Overview & Revenue Model

Company DescriptionLexinFintech Holdings Ltd. (LX) is a leading fintech company based in China, primarily focused on providing online consumer financial services. The company operates a technology-driven platform that facilitates consumer credit services, offering products like installment loans and personal loans. LexinFintech leverages big data, artificial intelligence, and other technologies to enhance user experience, risk management, and operational efficiency.

How the Company Makes MoneyLexinFintech Holdings generates revenue through various streams, primarily centered around its consumer finance platform. The company earns money by charging fees and interest on the loans provided to consumers. These consist of origination fees, which are charged upfront when a loan is issued, and interest income from the outstanding loan balances over time. Additionally, LexinFintech collaborates with financial institutions to facilitate loan funding, earning service fees for matching consumers with these partners. The company also offers membership services, where users pay for premium benefits and access to exclusive products, further diversifying its income sources.

Lexinfintech Holdings Financial Statement Overview

Summary

Lexinfintech Holdings shows strong revenue growth and stable profitability with an improving capital structure. However, challenges in cash flow generation and high liabilities need attention to maintain financial health.

Income Statement

Positive

Lexinfintech Holdings showed strong revenue growth with a 8.8% increase from 2023 to 2024. The gross profit margin improved to approximately 40.4%, reflecting efficient cost management. Net profit margin remained healthy at 7.7%, indicating consistent profitability. However, the EBIT margin of 21.2% and EBITDA margin of 16.8% suggest room for improvement in operational efficiency and cost control.

Balance Sheet

Positive

The company's debt-to-equity ratio improved to 0.49 in 2024, displaying a stronger capital structure. Return on equity (ROE) was solid at 10.2%, showing effective use of equity for generating returns. The equity ratio improved to 48.3%, suggesting a balanced asset financing strategy. However, the high level of total liabilities remains a potential risk factor.

Cash Flow

Neutral

Lexinfintech Holdings saw a decline in free cash flow from 2023 to 2024, indicating challenges in converting profits to cash. The absence of operating and free cash flow metrics for 2024 raises concerns about cash management. The company must focus on improving cash flow generation to support future growth and reduce financial risk.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
14.20B	13.06B	9.87B	11.38B	11.65B
	Gross Profit
5.74B	4.51B	3.03B	5.75B	3.63B
	EBIT
3.00B	1.88B	-347.81M	3.04B	1.42B
	EBITDA
2.39B	1.52B	1.23B	2.98B	1.53B
	Net Income Common Stockholders
1.10B	1.07B	819.75M	2.33B	594.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.25B	2.82B	1.49B	2.66B	1.56B
	Total Assets
22.24B	23.14B	22.77B	21.03B	20.35B
	Total Debt
5.25B	5.51B	9.10B	7.48B	9.26B
	Net Debt
3.00B	2.89B	7.61B	4.82B	7.70B
	Total Liabilities
11.50B	13.43B	14.12B	12.96B	14.81B
	Stockholders Equity
10.74B	9.71B	8.65B	8.03B	5.49B
Cash Flow		Free Cash Flow
0.00	2.56B	-49.97M	2.55B	-297.59M
	Operating Cash Flow
0.00	2.79B	98.84M	2.67B	-211.02M
	Investing Cash Flow
0.00	2.33B	-2.41B	414.62M	-2.14B
	Financing Cash Flow
0.00	-3.85B	1.11B	-1.78B	1.23B

Lexinfintech Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.66

Price Trends

50DMA

9.00

Negative

100DMA

7.35

Negative

200DMA

4.79

Positive

Market Momentum

MACD

0.57

Positive

RSI

53.56

Neutral

STOCH

38.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Negative. The current price of 6.66 is below the 20-day moving average (MA) of 9.55, below the 50-day MA of 9.00, and above the 200-day MA of 4.79, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
YRD	84 Outperform	$465.59M	2.12	17.96%	3.38%	17.07%	-8.81%
LX	77 Outperform	$1.09B	7.40	10.77%	1.82%	10.06%	0.04%
FINV	77 Outperform	$1.99B	6.10	16.47%	3.09%	2.51%	7.06%
SEZL	68 Neutral	$1.31B	17.69	142.86%	―	70.14%	1359.37%
Sector *	64 Neutral	$13.37B	9.30	9.39%	4.85%	16.11%	-8.85%
QD	54 Neutral	$475.42M	35.96	0.80%	―	-16.27%	-88.56%
LC	53 Neutral	$1.05B	20.23	3.96%	―	3.63%	27.77%

* Financial Sector Average

Performance Comparison

Lexinfintech Holdings

6.66

5.10

326.92%

LendingClub

9.20

1.40

17.95%

YRD

Yiren Digital

5.33

0.67

14.38%

Qudian

2.37

-0.04

-1.66%

FINV

FinVolution Group

7.67

2.84

58.80%

SEZL

Sezzle Inc.

38.61

27.74

255.20%

Lexinfintech Holdings Earnings Call Summary

Earnings Call Date: Mar 18, 2025 | % Change Since: -37.11% | Next Earnings Date: Jun 3, 2025

Earnings Call Sentiment Positive

LexinFintech's earnings call indicated a positive trajectory with significant improvements in profit growth, risk management, and technological investments. However, the stability in GMV and ongoing challenges with legacy loans highlight areas for continued focus. The strategic increase in dividend payout also suggests confidence in future performance.

Highlights

Consistent Profit Growth

LexinFintech reported a significant increase in net income by 17% quarter-over-quarter, reaching RMB363 million, driven by a decline in credit costs and improved asset quality.

Improved Risk Management

The company enhanced its risk management capabilities, leading to a 4% decline in day one delinquency ratio and a 3% decline in the 90-day delinquency ratio.

Technological Advancements

LexinFintech invested RMB151 million in R&D, focusing on AI and big models, which improved efficiency across multiple operations, boosting coding efficiency by approximately 35%.

Increased Dividend Payout

The company announced an increase in the dividend payout ratio to 25% of net profit starting in 2025, reflecting confidence in future profit growth.

Lowlights

Stable GMV

The total GMV remained relatively stable, showing no significant growth, which might indicate challenges in expanding the customer base or market penetration.

Challenges with Legacy Loans

The company noted that legacy loans continue to drag overall performance, although improvements in new loan quality are expected to mitigate this over time.

Company Guidance

In the fourth quarter of 2024, LexinFintech reported significant financial and operational improvements, driven by robust risk management and data analytics capabilities. The company's outstanding loan balance was RMB110 billion, with a GMV of RMB52 billion, revenue of RMB3.7 billion, and non-GAAP profit of RMB390 million. New loans facilitated showed improved quality, with risk indicators such as FPD over seven days and FPD over 30 days improving by 8% and 9%, respectively, compared to the third quarter. The day one delinquency ratio decreased by 4%, and the 90-day delinquency ratio decreased by 3%. The company also invested RMB151 million in research and development, enhancing AI models and risk management tools, which improved risk identification accuracy by 15% and stability by 10%. Looking forward to 2025, LexinFintech aims for significant profit growth, maintaining a prudent operating strategy while increasing its dividend payout ratio to 25% of net profit.

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.