Chime Financial, Inc. Class A (CHYM) AI Stock Analysis

• Market Cap: $9.82B
• Dividend Yield: N/A
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.29
• Revenue Growth: 32.86%
• EPS Growth: -829.88%
• Country: US
• Employees: 1,465
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 339,528,750
• 10 Day Avg. Volume: 2,067,148
• 30 Day Avg. Volume: 2,395,401
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 11.25
• Enterprise Value/Gross Profit: 12.86
• Enterprise Value/Ebitda: -12.99
• 1Y Price Target: $37.07
• Price Target Upside: 52.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 52 Neutral
• Price Target: $34.00 ▲(39.86% Upside)

Chime Financial's overall stock score is primarily influenced by its strong revenue growth and solid balance sheet, which are offset by challenges in profitability and valuation concerns. The technical analysis provides a neutral outlook, neither strongly supporting nor detracting from the stock's potential. The lack of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Competitive Advantages

Chime's bank-first offering, radical cost-to-serve advantage, and proprietary vertically integrated technology stack comprise durable competitive advantages.

Customer Satisfaction

Chime's Net Promoter Scores (NPS) are double that of the largest US bank brands, indicating high customer satisfaction.

User Growth

Chime's distinct offerings and new product rollouts, including MyPay, Chime+, and Instant Loans, are powering user growth.

Negative Factors

Credit Losses

Credit losses will be important to watch given the company's lower-income customer demographic skew.

Profitability Concerns

Lack of profitability is considered an overhang in the near term, with valuation seen as somewhat full at current levels.

Valuation Concerns

Lack of profitability is considered an overhang in the near term, with valuation seen as somewhat full at current levels.

Chime Financial, Inc. Class A Business Overview & Revenue Model

Company Description

Chime Financial, Inc. Class A (CHYM) is a financial technology company that operates in the digital banking sector, primarily targeting consumers seeking user-friendly and low-cost banking solutions. The company offers a range of financial services, including no-fee checking and savings accounts, debit cards, and tools for budgeting and saving. By leveraging technology, Chime aims to provide a seamless banking experience that promotes financial health and accessibility for its users.

How the Company Makes Money

Chime makes money primarily through interchange fees charged to merchants when customers use their Chime debit cards for purchases. Additionally, the company generates revenue through interest on customer deposits held in its accounts, as well as from partnerships with other financial service providers that may include referral fees. Chime has strategically partnered with banks to offer its services, allowing it to scale its offerings without the significant overhead of traditional banking infrastructure. The focus on low or no fees enhances customer acquisition and retention, which is crucial for increasing transaction volumes and overall profitability.

Chime Financial, Inc. Class A Financial Statement Overview

Summary

Chime Financial shows strong revenue growth and a solid balance sheet with low leverage. However, the company faces challenges in achieving profitability and efficient cash flow management. Continued focus on operational efficiency and cost management will be crucial for improving financial performance.

Income Statement

Chime Financial has shown a positive revenue growth rate of 26.73% from 2023 to 2024, indicating strong top-line growth. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins over the years. The gross profit margin is healthy at 87.60% for 2024, but the negative EBIT and net profit margins suggest operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.10 in 2024, indicating conservative leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the low debt levels imply a strong equity base.

Cash Flow

Chime Financial has improved its cash flow position, with a significant increase in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from its operations. However, the free cash flow to net income ratio is below 1, suggesting that not all net income is translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.05B	1.67B	1.28B	1.01B
Gross Profit	915.46M	1.47B	1.06B	794.15M
EBITDA	-906.83M	-36.83M	-222.85M	-471.40M
Net Income	-910.44M	-25.34M	-203.20M	-470.25M
Balance Sheet
Total Assets	1.90B	1.46B	1.32B	1.42B
Cash, Cash Equivalents and Short-Term Investments	1.11B	706.59M	800.63M	937.97M
Total Debt	74.77M	96.34M	104.89M	100.81M
Total Liabilities	474.38M	501.52M	383.74M	316.71M
Stockholders Equity	1.43B	959.52M	936.51M	1.10B
Cash Flow
Free Cash Flow	-8.41M	49.67M	-184.41M	-507.05M
Operating Cash Flow	1.61M	64.14M	-156.59M	-434.13M
Investing Cash Flow	79.13M	45.66M	167.01M	150.54M
Financing Cash Flow	451.06M	456.00K	842.00K	1.02M

Chime Financial, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.88B	11.66	10.24%	3.76%	9.66%	1.70%
PNBK	55 Neutral	$146.76M	―	-82.98%	―	-11.96%	-500.26%
CHYM	52 Neutral	$9.82B	―		―	32.86%	-829.88%
BTCS	47 Neutral	$200.86M	5.34	-62.90%	―	373.29%	-209.98%
PBBK	―	$50.71M	21.24	4.53%	―	―	―
ARBK	37 Underperform	$17.83M	―	242.25%	―	-13.86%	-32.19%
NSTS	―	$62.34M	―	-1.04%	―	―	―