LendInvest PLC (LINV) AI Stock Analysis

• Market Cap: £54.02M
• Dividend Yield: N/A
• Average Volume (3M): 81.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 25.27%
• EPS Growth: 92.21%
• Country: UK
• Employees: 196
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): >-0.01
• Shares Outstanding: 142,782,030
• 10 Day Avg. Volume: 4,938
• 30 Day Avg. Volume: 81,183
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £35.00
• Price Target Upside: -9.09% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: 35.00p ▼(-9.09% Downside)

LendInvest PLC's overall stock score is primarily impacted by its financial performance challenges, including high leverage and negative profitability metrics. Technical analysis further indicates bearish momentum, while valuation concerns are highlighted by a negative P/E ratio. The absence of dividend yield also detracts from the stock's appeal.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for LendInvest's financial products, enhancing its market position and potential for future profitability.

Technology-Driven Platform

The technology-driven platform reduces operational costs and improves efficiency, providing a competitive advantage in the property finance sector.

Diversified Funding Sources

Diversified funding sources through partnerships enhance financial stability and reduce dependency on any single source of capital.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability challenges hinder the company's ability to generate sustainable returns, affecting long-term financial health.

Negative Cash Flow

Negative cash flows indicate inefficiencies in operations, limiting the company's ability to reinvest in business growth and innovation.

LendInvest PLC Business Overview & Revenue Model

Company Description

LendInvest plc operates as a property finance asset manager in the United Kingdom. The company offers short-term, development, and buy-to-let mortgages to intermediaries, landlords, and developers. It also provides fund management services; and holds securities. The company was incorporated in 2012 and is based in London, the United Kingdom.

How the Company Makes Money

LendInvest generates revenue primarily through interest income on the loans it provides to borrowers, as well as fees associated with loan origination and servicing. The company earns a margin on the loans it underwrites, which involves assessing the risk and determining interest rates based on borrower profiles and property valuations. Key revenue streams include the origination fees charged to borrowers, ongoing management fees for servicing the loans, and interest earned from the loans themselves. Additionally, LendInvest has established partnerships with institutional investors and high-net-worth individuals, allowing them to invest in the loans originated through its platform, which enhances liquidity and diversifies funding sources. The company's unique position as a technology-enabled lender also allows it to reduce operational costs, thereby increasing profitability.

LendInvest PLC Financial Statement Overview

Summary

LendInvest PLC shows strong revenue growth but faces significant challenges in profitability and cash flow management. High leverage and negative returns on equity pose financial risks, necessitating improvements in margins and cash flow efficiency.

Income Statement

LendInvest PLC shows significant revenue growth with a 336.45% increase in the latest year, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by a negative net profit margin and declining EBIT and EBITDA margins. The gross profit margin has decreased from previous years, suggesting rising costs or pricing pressures.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 11.35, indicating significant reliance on debt financing. Stockholders' equity has been relatively stable, but the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is low, highlighting potential financial risk.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, although there is a positive growth trend in free cash flow. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, suggesting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.30M	88.60M	85.10M	86.70M	87.60M	79.13M
Gross Profit	15.80M	49.80M	37.70M	81.60M	79.10M	37.63M
EBITDA	29.10M	19.50M	-12.50M	58.30M	57.70M	40.50M
Net Income	-10.10M	-1.60M	-20.10M	11.40M	10.90M	3.80M
Balance Sheet
Total Assets	693.20M	830.50M	601.60M	1.26B	1.38B	1.15B
Cash, Cash Equivalents and Short-Term Investments	71.60M	64.40M	55.70M	46.70M	118.20M	57.29M
Total Debt	601.70M	730.50M	516.90M	1.16B	1.22B	1.05B
Total Liabilities	636.80M	766.10M	542.30M	1.19B	1.27B	1.10B
Stockholders Equity	56.40M	64.40M	59.30M	76.50M	103.30M	48.25M
Cash Flow
Free Cash Flow	-160.70M	-198.70M	25.40M	-25.40M	36.30M	-218.53M
Operating Cash Flow	-159.60M	-196.50M	28.60M	-18.90M	39.70M	-216.12M
Investing Cash Flow	-91.30M	3.80M	-16.90M	11.70M	-191.00M	-2.43M
Financing Cash Flow	154.40M	205.20M	-2.70M	-64.30M	207.30M	189.10M

LendInvest PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LINV, the sentiment is Positive. The current price of 38.5 is above the 20-day moving average (MA) of 38.42, below the 50-day MA of 39.41, and above the 200-day MA of 30.93, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LINV.

LendInvest PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAG	82 Outperform	£1.68B	8.77	14.68%	4.64%	6.25%	10.48%
OSB	77 Outperform	£2.00B	7.85	12.04%	5.10%	-7.30%	-27.83%
JUP	73 Outperform	£618.81M	10.85	7.11%	3.54%	-4.38%	―
MAB1	69 Neutral	£394.11M	24.65	22.10%	3.58%	11.27%	16.57%
Sector *	68 Neutral	$18.00B	11.42	9.93%	3.81%	9.73%	1.22%
SAGA	65 Neutral	£289.20M	―	-127.10%	―	-20.62%	-44.96%
LINV	39 Underperform	£54.02M	―	-2.59%	―	25.27%	92.21%