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loanDepot, Inc. (LDI)
NYSE:LDI
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loanDepot
(NYSE:LDI)
48Neutral
loanDepot (LDI) vs. S&P 500 (SPY)
Market Cap
$405.79M
Dividend YieldN/A
Average Volume (3M)986.07K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth3.76%
EPS Growth16.19%
CountryUS
Employees4,900
SectorFinancial
Sector Strength87
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-0.08
Shares Outstanding111,009,800
10 Day Avg. Volume967,328
30 Day Avg. Volume986,070
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)0.80
Price to Sales (P/S)0.00
P/FCF Ratio-0.42
Enterprise Value/Market Cap10.62
Enterprise Value/Revenue1.08
Enterprise Value/Gross Profit3.98
Enterprise Value/Ebitda28.63
Forecast
1Y Price Target
$1.38Price Target Upside12.20% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
loanDepot Business Overview & Revenue Model
Company DescriptionloanDepot, Inc. (LDI) is a leading provider of consumer lending services, primarily focused on the residential mortgage sector. Founded in 2010 and based in the United States, the company offers a comprehensive suite of loan products, including fixed and adjustable-rate mortgages, refinancing solutions, and home equity loans. loanDepot operates through a combination of direct-to-consumer online platforms and a national network of loan officers, providing tailored lending solutions to meet the diverse needs of its customers.
How the Company Makes MoneyloanDepot generates revenue primarily through the origination and servicing of mortgage loans. The company earns income from loan origination fees, which are charged to borrowers at the initiation of a loan, and from selling the originated loans to investors in the secondary market. Additionally, loanDepot collects servicing fees for managing and processing payments on behalf of investors for the loans it retains on its balance sheet. Significant partnerships with financial institutions and government-sponsored enterprises such as Fannie Mae and Freddie Mac also play a crucial role in facilitating the company's ability to originate and sell a high volume of loans, thereby contributing to its revenue streams.
loanDepot Financial Statement Overview
Summary
loanDepot faces significant financial challenges, with persistent net losses and negative cash flows impacting its overall financial health. While there have been improvements in revenue and debt reduction, the company struggles with profitability and liquidity. Strategic adjustments are necessary to enhance financial performance and stabilize cash flow.Income Statement
loanDepot has shown a fluctuating revenue trajectory with a recent increase in total revenue for 2024. However, the company has been experiencing consistent net losses over the past few years, with a significant net income decline in 2024. The EBIT margin has improved, yet the negative EBITDA for 2024 signifies financial challenges. The gross profit margin remains strong, but overall profitability is a concern.45
Neutral
Balance Sheet
The balance sheet shows improvements in stockholders' equity and a significant reduction in total debt, enhancing the company's equity ratio. However, the debt-to-equity ratio has benefited from reduced debt levels, but the overall equity position remains relatively weak compared to industry standards. The return on equity remains negative due to persistent net losses, indicating challenges in generating returns for shareholders.50
Neutral
Cash Flow
loanDepot's cash flow statement reveals negative operating and free cash flows, which indicate liquidity challenges. The free cash flow has significantly decreased in 2024, and the operating cash flow to net income ratio is unfavorable due to negative net income. The company needs to improve cash generation to ensure financial stability.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.06B | 739.27M | 1.01B | 3.45B | 4.14B | Gross Profit |
| 1.06B | 715.75M | 975.58M | 3.41B | 4.10B | EBIT |
| 723.33M | 0.00 | -56.88M | 156.90M | 4.14B | EBITDA |
| -354.07M | 0.00 | 0.00 | 0.00 | 4.39B | Net Income Common Stockholders |
| -98.33M | -110.14M | -610.38M | 623.15M | 2.01B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 421.58M | 660.71M | 863.96M | 419.57M | 284.22M | Total Assets |
| 6.34B | 6.15B | 7.10B | 11.78B | 10.89B | Total Debt |
| 4.36B | 4.27B | 4.50B | 9.16B | 7.38B | Net Debt |
| 3.93B | 3.61B | 3.63B | 8.74B | 7.10B | Total Liabilities |
| 5.84B | 5.45B | 5.69B | 10.18B | 9.24B | Stockholders Equity |
| 272.89M | 353.18M | 921.47M | 494.24M | 1.66B |
| Cash Flow | Free Cash Flow | |||
| -891.81M | -194.83M | 4.42B | -1.52B | -2.06B | Operating Cash Flow |
| -865.42M | -174.22M | 4.46B | -1.47B | -2.03B | Investing Cash Flow |
| 495.05M | 165.66M | 667.76M | 296.78M | -27.67M | Financing Cash Flow |
| 151.74M | -226.09M | -4.77B | 1.30B | 2.43B |
loanDepot Technical Analysis
Neutral
1.23
Price Trends
1.24
Negative
1.49
Negative
1.95
Negative
Market Momentum
>-0.01
Negative
56.36
Neutral
79.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDI, the sentiment is Neutral. The current price of 1.23 is above the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.24, and below the 200-day MA of 1.95, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 79.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $606.12M | 8.67 | 13.62% | ― | 32.62% | 16.91% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% | |
62 Neutral | $5.19B | 15.62 | 9.32% | 1.08% | 23.79% | 121.61% | |
56 Neutral | $815.58M | 18.45 | 3.71% | 3.90% | 42.92% | 64.72% | |
52 Neutral | $25.90B | 68.51 | 0.45% | ― | 24.58% | -88.86% | |
48 Neutral | $405.79M | ― | -29.48% | ― | 3.76% | 16.19% | |
41 Neutral | $6.75B | 37.74 | -5.74% | 9.24% | 9.19% | -171.38% |
* Financial Sector Average
Performance Comparison
LDI
loanDepot
1.23
-0.87
-41.43%
PFSI
PennyMac Financial
100.52
7.73
8.33%
VEL
Velocity Financial
16.61
-1.58
-8.69%
UWMC
UWM Holding
4.22
-2.54
-37.57%
RKT
Rocket Companies
12.95
-0.81
-5.89%
GHLD
Guild Holdings
13.11
-1.27
-8.83%
loanDepot Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 20.59%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. There were significant achievements in terms of increased rate lock volume, gain on sale margin, and loan origination volume. However, the company faced challenges with a net loss, decreased servicing revenue, and higher expenses.Q1-2025 Updates
Positive Updates
Increased Pull-through Weighted Rate Lock Volume
The first quarter saw a pull-through weighted rate lock volume of $5.4 billion, a 15% increase from the prior year's volume of $4.7 billion.
Higher Gain on Sale Margin
The pull-through weighted gain on sale margin for the first quarter was 355 basis points, compared to 274 basis points in the prior year.
Loan Origination Volume Growth
Loan origination volume was $5.2 billion for the quarter, an increase of 14% from the prior year's volume of $4.6 billion.
Strong Multi-channel Strategy
loanDepot's multi-channel strategy, including end market retail, joint venture channels, and consumer direct channels, contributed to increased origination volume and growth potential.
Negative Updates
Adjusted Net Loss
The company reported an adjusted net loss of $25 million in the first quarter, compared to an adjusted net loss of $38 million in the first quarter of 2024.
Decrease in Servicing Revenue
Servicing fee income decreased from $124 million in the first quarter of 2024 to $104 million in the first quarter of 2025, primarily due to 2024 MSR bulk sales.
Higher Total Expenses
Total expenses for the first quarter of 2025 increased by $12 million, or 4% from the prior year quarter, mainly due to higher volume-related commission, direct origination, and marketing expenses.
Company Guidance
In the loanDepot's First Quarter 2025 Earnings Call, the company provided guidance on several key metrics. They reported a pull-through weighted rate lock volume of $5.4 billion, reflecting a 15% increase from the prior year's $4.7 billion, and within the guidance range of $4.8 billion to $5.8 billion. The pull-through weighted gain on sale margin was notably at 355 basis points, surpassing the guidance range of 320 to 340 basis points and illustrating a significant improvement from the previous year's 274 basis points. This increase was attributed to a larger contribution from home equity-linked products and a higher proportion of government loans. The loan origination volume reached $5.2 billion, a 14% rise from the previous year's $4.6 billion, aligning with the guidance of $4.5 billion to $5.5 billion. For the second quarter, the company anticipates a pull-through weighted lock volume between $5.5 billion and $8 billion, origination volume ranging from $5 billion to $7.5 billion, and a pull-through weighted gain on sale margin between 300 and 350 basis points. Total expenses are expected to rise due to increased volume-related costs. This guidance reflects a focus on leveraging growth-generating initiatives and maintaining strong operational leverage in the face of market volatility.loanDepot Corporate Events
Business Operations and StrategyFinancial Disclosures
loanDepot Reports 9% Revenue Increase for 2024
Positive
Mar 11, 2025
On March 11, 2025, loanDepot announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a 9% increase in annual revenue, reaching $1.06 billion, and a reduction in net losses compared to the previous year. Significant achievements included refinancing corporate debt, expanding joint venture partnerships, and improving operational productivity. Despite a net loss of $202 million for the year, loanDepot’s strategic initiatives under Vision 2025 and Project North Star are expected to position the company for future growth and profitability.
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.