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loanDepot, Inc. (LDI)
NYSE:LDI
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loanDepot
(NYSE:LDI)
Select Model
Select Model
Rating:58Neutral
Price Target:
$4.00
▲(22.70% Upside)
loanDepot's stock score is primarily impacted by its financial challenges, including high leverage and negative cash flows. Technical analysis provides some positive momentum, but valuation concerns and ongoing losses weigh heavily. The earnings call offered some optimism with operational improvements, but financial risks remain significant.
Positive Factors
Revenue Growth
Strong revenue growth suggests improved market demand and operational efficiency, potentially leading to better financial performance.
Operational Improvements
Increased volumes in rate locks and originations indicate enhanced operational capabilities and market competitiveness.
Leadership and Digital Transformation
New leadership focused on digital transformation can drive innovation and efficiency, strengthening long-term competitive positioning.
Negative Factors
High Leverage
High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.
Negative Cash Flows
Negative cash flows challenge liquidity and operational sustainability, potentially hindering growth and investment opportunities.
Continued Net Loss
Ongoing net losses indicate persistent profitability challenges, which can undermine long-term financial health and investor confidence.
loanDepot (LDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.15B
Dividend YieldN/A
Average Volume (3M)12.87M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth6.60%
EPS Growth44.77%
CountryUS
Employees4,900
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-0.07
Shares Outstanding112,351,105
10 Day Avg. Volume23,642,478
30 Day Avg. Volume12,867,258
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.86
Enterprise Value/Revenue3.84
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda33.44
Forecast
1Y Price Target
$1.70Price Target Upside-47.85% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
loanDepot Business Overview & Revenue Model
Company DescriptionloanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. It offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. The company also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies. The company was founded in 2010 and is headquartered in Foothill Ranch, California.
How the Company Makes MoneyloanDepot generates revenue primarily through the origination and servicing of mortgage loans. When a customer takes out a loan, loanDepot earns income from origination fees, which are charged as a percentage of the loan amount. Additionally, the company profits from interest on the loans it originates, as well as from the sale of loans to investors in the secondary market. loanDepot also generates servicing fees from managing the loans it retains in its portfolio. Key partnerships with technology providers enhance its operational efficiency and customer experience, contributing to its competitive advantage in the market.
loanDepot Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including increased rate lock and origination volumes, reduced adjusted net loss, and growth in servicing fee income. The company's focus on digital transformation and leadership changes are poised to drive future growth. However, challenges remain with a continued adjusted net loss, a decrease in gain on sale margin, and expected expense increases in the next quarter.Q2-2025 Updates
Positive Updates
Increase in Rate Lock Volume and Origination Volume
The second quarter saw a 17% increase in pull-through weighted rate lock volume to $6.3 billion and a 30% increase in loan origination volume to $6.7 billion, indicating higher home buying activity and operational improvements.
Adjusted Net Loss Reduction
The company reported an adjusted net loss of $16 million, down from $25 million in the previous quarter, primarily due to higher lock volume and lower expenses.
Servicing Fee Income Growth
Servicing fee income increased to $108 million from $104 million in the previous quarter, reflecting an increase in the unpaid principal balance of the servicing portfolio.
Leadership Additions for Digital Transformation
The addition of Chief Digital Officer Dominick Marchetti and Chief Innovation Officer Sean DeJulia aims to drive digital transformation and innovation, enhancing technology-powered efficiency.
Negative Updates
Continued Adjusted Net Loss
Despite improvements, the company still reported an adjusted net loss of $16 million for the quarter.
Decline in Gain on Sale Margin
The pull-through weighted gain on sale margin decreased to 330 basis points from 355 basis points in the prior quarter, reflecting a shift in product and channel mix.
Increased Expenses Expected
Total expenses are expected to increase in the third quarter, driven by higher non-volume-related expenses and the exclusion of onetime benefits recognized in the second quarter.
Company Guidance
During the loanDepot Second Quarter 2025 Earnings Call, guidance was provided regarding several key financial metrics and future outlooks. The company reported an adjusted net loss of $16 million, an improvement from the $25 million loss in the previous quarter, attributed to higher lock volume and reduced expenses. Pull-through weighted rate lock volume increased by 17% to $6.3 billion, and loan origination volume rose by 30% to $6.7 billion, both aligning with prior guidance ranges. The pull-through weighted gain on sale margin for the quarter was 330 basis points, within the projected range of 300 to 350 basis points. Looking ahead to the third quarter, the company expects pull-through weighted lock volume between $5.25 billion and $7.25 billion and origination volume between $5 billion and $7 billion, with a gain on sale margin anticipated to be between 325 and 350 basis points. The guidance also reflects anticipated increases in total expenses due to the exclusion of second-quarter one-time benefits. The company emphasized its focus on enhancing technology and operating efficiencies to drive profitable growth and market share expansion amidst market volatility and high mortgage interest rates.loanDepot Financial Statement Overview
Summary
loanDepot faces significant financial challenges with high leverage, negative cash flows, and ongoing losses. Despite a strong gross profit margin, the net profit margin remains negative, and the balance sheet shows high debt levels, indicating financial instability.Income Statement
loanDepot's income statement shows a challenging environment with declining revenue and profitability. The TTM data indicates a significant revenue growth of 69.8%, but this follows a period of substantial revenue decline in previous years. The gross profit margin is strong at 94.3% TTM, but the net profit margin remains negative, indicating ongoing losses. EBIT and EBITDA margins have improved slightly but remain low, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 10.27 TTM, indicating significant financial risk. Return on equity is negative, reflecting ongoing losses and a weak equity position. The equity ratio is low, suggesting limited financial stability. The company needs to address its high debt levels to improve financial health.40
Negative
Cash Flow
Cash flow analysis shows negative operating and free cash flows, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Although the free cash flow to net income ratio is positive, it reflects the company's ability to generate cash relative to its losses, rather than profitability.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.16B | 1.05B | 971.62M | 1.78B | 5.01B | 4.34B |
| Gross Profit | 1.10B | 1.06B | 1.13B | 1.00B | 4.01B | 4.56B |
| EBITDA | 133.45M | 140.14M | 0.00 | -311.31M | 1.02B | 4.39B |
| Net Income | -67.15M | -98.33M | -110.14M | -273.02M | 113.52M | 2.01B |
Balance Sheet | ||||||
| Total Assets | 6.21B | 6.34B | 6.15B | 7.10B | 11.78B | 10.89B |
| Cash, Cash Equivalents and Short-Term Investments | 408.62M | 421.58M | 660.71M | 863.96M | 419.57M | 284.22M |
| Total Debt | 4.51B | 4.44B | 4.27B | 4.50B | 9.16B | 7.38B |
| Total Liabilities | 5.77B | 5.84B | 5.45B | 5.69B | 10.18B | 9.24B |
| Stockholders Equity | 439.05M | 272.89M | 353.18M | 921.47M | 523.56M | 1.66B |
Cash Flow | ||||||
| Free Cash Flow | -448.09M | -891.81M | -194.83M | 4.42B | -1.52B | -2.06B |
| Operating Cash Flow | -420.87M | -865.42M | -174.22M | 4.46B | -1.47B | -2.03B |
| Investing Cash Flow | 18.44M | 495.05M | 165.66M | 667.76M | 296.78M | -27.67M |
| Financing Cash Flow | 249.32M | 151.74M | -226.09M | -4.77B | 1.30B | 2.43B |
loanDepot Technical Analysis
Positive
3.26
Price Trends
2.42
Positive
1.86
Positive
1.73
Positive
Market Momentum
0.42
Positive
52.10
Neutral
5.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDI, the sentiment is Positive. The current price of 3.26 is below the 20-day moving average (MA) of 3.30, above the 50-day MA of 2.42, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 5.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDI.
loanDepot Risk Analysis
loanDepot disclosed 68 risk factors in its most recent earnings report. loanDepot 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
loanDepot Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | 729.18M | 8.68 | ― | ― | 35.12% | 25.28% | |
64 Neutral | 6.38B | 17.07 | 8.13% | 0.97% | 20.77% | 96.22% | |
61 Neutral | 41.23B | -402.26 | >-0.01% | ― | 21.52% | -103.65% | |
58 Neutral | $1.15B | ― | -23.67% | ― | 6.60% | 44.77% | |
58 Neutral | 1.24B | 51.13 | 2.12% | ― | 34.62% | -7.94% | |
53 Neutral | 10.30B | -97.13 | 6.73% | 6.21% | 12.27% | -21.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
LDI
loanDepot
3.26
0.47
16.85%
PFSI
PennyMac Financial
123.32
12.40
11.18%
COOP
Mr Cooper Group
212.68
122.80
136.63%
UWMC
UWM Holding
6.44
-1.33
-17.12%
RKT
Rocket Companies
19.59
1.78
9.99%
GHLD
Guild Holdings
19.94
3.78
23.39%
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.