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Enova International (ENVA)
NYSE:ENVA

Enova International (ENVA) AI Stock Analysis

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Enova International

(NYSE:ENVA)

Rating:78Outperform
Price Target:
$120.00
▲(3.58%Upside)
Enova International's overall stock score of 78 reflects its strong financial performance and positive earnings outlook. The company benefits from robust revenue growth and effective cash flow management. However, concerns about high leverage and potential risks from macroeconomic factors such as tariffs are balanced against the positive sentiment from the latest earnings call and strategic corporate events.
Positive Factors
Competitive Advantage
Enova differentiates itself from other fintech companies in its approach to funding capabilities and capital requirements.
Financial Performance
ENVA reported higher-than-expected EPS, driven by a lower tax rate and better revenue, resulting in a stronger net revenue margin.
Growth Potential
The company is expected to have a strong seasonal bounce-back in loan growth, leading to higher revenue and EPS estimates.
Negative Factors
Loss Rates
Loss rates were slightly higher than estimates in both consumer and small business lending, though overall remain solid.
Market Comparison
ENVA shares trade at a P/E multiple of 8.7x the new EPS estimate, which is at a discount to prominent online lender Lending Club.

Enova International (ENVA) vs. SPDR S&P 500 ETF (SPY)

Enova International Business Overview & Revenue Model

Company DescriptionEnova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, Australia, and Canada. The company offers installment loans; line of credit accounts; receivables purchase agreements; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, The Business Backer, Simplic, and Pangea names. Enova International, Inc. was incorporated in 2011 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyEnova International generates revenue primarily through interest and fees on the financial products it offers. The company utilizes its advanced risk assessment and analytics technology to underwrite and price its credit offerings effectively. Enova's key revenue streams include interest income from personal loans and lines of credit, as well as service fees associated with these products. Additionally, Enova earns revenue from its small business lending operations, which provide working capital and financial solutions to small enterprises. The company also benefits from its strategic partnerships and proprietary technology, which enhance its ability to reach and serve a diverse customer base efficiently.

Enova International Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 16.37%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a predominantly positive sentiment due to strong revenue growth, robust origination figures, and stable credit performance. However, potential risks from tariff impacts and higher new customer charge-offs are noted. Overall, the company appears well-positioned to navigate these challenges.
Q1-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Enova reported a 22% year-over-year increase in total company revenue to $746 million for Q1 2025. Adjusted EPS increased by 56% year-over-year, indicating strong profitability.
Record Origination Growth
First quarter originations rose 26% year-over-year to $1.7 billion, demonstrating significant growth in new loan originations.
Robust SMB and Consumer Revenue
Small business lending revenue increased 29% year-over-year to $305 million, while consumer revenue rose 18% to $431 million.
Stable Credit Performance
Consolidated net charge-off ratio declined to 8.6%, indicating stable credit performance across the portfolio.
Strong Labor Market Impacts
The U.S. added 228,000 jobs in March 2025, contributing to strong consumer spending and benefiting Enova's portfolios.
Negative Updates
Concerns Over Tariffs
Uncertainty regarding the impact of government tariff policies on the U.S. economy poses potential risks to Enova's operations.
Higher New Customer Charge-Offs
New customers, particularly in the cash net consumer business, experienced higher charge-off rates, impacting credit performance.
Volatility in Stock Market
Recent volatility in the stock market and financial company shares, including Enova, has been noted as a concern.
Company Guidance
In the Enova International First Quarter 2025 Earnings Conference Call, the company provided guidance indicating strong financial performance and positive expectations for the remainder of the year. Enova reported a 22% year-over-year increase in total revenue to $746 million and a 26% increase in originations to $1.7 billion. The company highlighted a 20% year-over-year growth in combined loan and finance receivables to $4.1 billion. Small business products accounted for 65% of the portfolio, with a revenue increase of 29% year-over-year, while the consumer sector saw an 18% revenue growth. Enova's adjusted EPS rose by 56% year-over-year, and the net charge-off ratio improved to 8.6% from 8.9% in the previous quarter. Looking forward, Enova expects second-quarter revenue to be flat or slightly higher sequentially, with marketing expenses around 20% of revenue and operational and technology expenses at approximately 8.5% of revenue. The company aims for adjusted EPS growth of at least 25% for the full year 2025, supported by a strong liquidity position of $1.1 billion.

Enova International Financial Statement Overview

Summary
Enova International demonstrates strong financial health with notable revenue growth and profitability metrics. The income statement shows robust gross profit margins, and the cash flow statement indicates excellent cash generation capabilities. While the balance sheet is leveraged, it remains stable, highlighting effective financial management.
Income Statement
85
Very Positive
The income statement reflects strong profitability with a consistent increase in total revenue from $1.08 billion in 2020 to $2.79 billion TTM (Trailing-Twelve-Months) in 2025. Gross profit margins are robust, consistently above 40%. Net income has shown positive growth, indicating effective cost management and operational efficiency. The revenue growth rate from 2024 to TTM is approximately 5.1%, showcasing a moderate growth trajectory. However, EBITDA margins have experienced fluctuations, which could indicate variability in operating costs or other expenses.
Balance Sheet
75
Positive
The balance sheet demonstrates a solid equity base with stockholders' equity at $1.20 billion TTM. The debt-to-equity ratio is relatively high, reflecting significant leverage, which could pose risks in adverse market conditions. Return on Equity (ROE) remains healthy, suggesting effective use of equity to generate profits. The equity ratio is moderate, indicating a balanced approach to asset financing. Despite the high leverage, the company maintains a stable financial structure.
Cash Flow
90
Very Positive
Cash flow analysis reveals strong cash generation abilities with operating cash flow reaching $1.58 billion TTM. The free cash flow has consistently grown, with a significant increase from $711 million in 2020 to $1.54 billion TTM. The operating cash flow to net income ratio is robust, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is also strong, highlighting effective capital management. This strong cash flow position provides flexibility for debt servicing and investment opportunities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.79B2.66B2.12B1.74B1.21B1.08B
Gross Profit1.30B1.24B1.04B1.12B947.75M597.50M
EBITDA140.19M334.52M265.51M420.86M448.44M397.55M
Net Income233.97M209.45M175.12M207.42M256.30M377.84M
Balance Sheet
Total Assets5.46B5.27B4.59B3.78B2.76B2.11B
Cash, Cash Equivalents and Short-Term Investments55.51M73.91M54.36M100.17M165.48M297.27M
Total Debt3.73B3.60B2.97B2.29B1.43B1.01B
Total Liabilities4.26B4.07B3.35B2.59B1.67B1.19B
Stockholders Equity1.20B1.20B1.24B1.19B1.09B917.35M
Cash Flow
Free Cash Flow1.54B1.50B1.12B850.37M442.19M711.38M
Operating Cash Flow1.58B1.54B1.17B894.00M471.87M740.87M
Investing Cash Flow-1.98B-1.91B-1.49B-1.67B-980.37M83.58M
Financing Cash Flow480.18M318.88M526.54M724.87M365.15M-535.97M

Enova International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price115.85
Price Trends
50DMA
97.70
Positive
100DMA
97.58
Positive
200DMA
97.23
Positive
Market Momentum
MACD
5.05
Negative
RSI
82.00
Negative
STOCH
95.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENVA, the sentiment is Positive. The current price of 115.85 is above the 20-day moving average (MA) of 101.84, above the 50-day MA of 97.70, and above the 200-day MA of 97.23, indicating a bullish trend. The MACD of 5.05 indicates Negative momentum. The RSI at 82.00 is Negative, neither overbought nor oversold. The STOCH value of 95.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
$2.49B7.1717.91%2.91%5.13%25.93%
78
Outperform
$2.94B13.6519.94%24.47%54.18%
PRPRK
78
Outperform
$2.87B18.2012.98%2.41%11.80%23.34%
BFBFH
74
Outperform
$2.81B10.779.34%1.39%-3.20%-28.69%
67
Neutral
$17.01B11.909.70%3.76%11.63%-9.47%
LCLC
62
Neutral
$1.44B28.273.86%5.72%31.82%
LULU
52
Neutral
$2.41B-3.79%4.57%-38.81%-425.73%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ENVA
Enova International
115.85
54.36
88.40%
BFH
Bread Financial Holdings
60.40
16.16
36.53%
PRK
Park National
177.31
39.23
28.41%
LC
LendingClub
12.57
4.21
50.36%
FINV
FinVolution Group
9.84
5.21
112.53%
LU
Lufax Holding
2.79
0.25
9.84%

Enova International Corporate Events

Private Placements and Financing
Enova International Issues $163.9M in Principal Notes
Neutral
May 30, 2025

On May 30, 2025, NetCredit Combined Receivables A, LLC, an indirect subsidiary of Enova International, issued $163,866,000 in principal notes through a securitization transaction. The notes, backed by $193.0 million in unsecured consumer installment loans, are intended to acquire receivables, fund a reserve account, and cover transaction expenses. The notes, with a fixed interest rate of 7.29%, mature on October 20, 2031, and are subject to specific compliance criteria. Failure to meet these criteria could lead to accelerated maturity or sale of receivables. The notes are offered to qualified institutional buyers and persons outside the U.S. under specific regulations.

The most recent analyst rating on (ENVA) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Enova International stock, see the ENVA Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Enova International Announces Pricing of New Notes
Positive
May 19, 2025

On May 16, 2025, Enova International announced the pricing of $163,866,000 in aggregate principal notes through its indirect subsidiary, NetCredit Combined Receivables A, LLC. These notes, set to close around May 30, 2025, will be backed by unsecured consumer installment loans and are aimed at qualified institutional buyers. The proceeds will be used to acquire securitization receivables, fund a reserve account, and cover transaction-related expenses, highlighting Enova’s strategic financial maneuvers to enhance its market positioning.

The most recent analyst rating on (ENVA) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Enova International stock, see the ENVA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Enova International Holds Annual Stockholders Meeting
Neutral
May 14, 2025

On May 14, 2025, Enova International held its Annual Meeting of Stockholders, where ten directors were elected, executive compensation was approved on a non-binding basis, and Deloitte & Touche LLP was ratified as the independent auditor for 2025. The meeting saw participation from a significant majority of shareholders, indicating strong engagement and support for the company’s governance and strategic direction.

The most recent analyst rating on (ENVA) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Enova International stock, see the ENVA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 27, 2025