loanDepot (LDI) AI Stock Analysis

• Market Cap: $708.18M
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 6.60%
• EPS Growth: 44.77%
• Country: US
• Employees: 4,900
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Mortgages
• EPS (TTM): -0.07
• Shares Outstanding: 112,351,105
• 10 Day Avg. Volume: 2,708,293
• 30 Day Avg. Volume: 2,241,483
• 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: 6.30
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 33.44
• 1Y Price Target: $1.70
• Price Target Upside: -20.56% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $2.00 ▼(-6.54% Downside)

loanDepot's overall score reflects significant financial challenges, including high leverage and negative cash flows. While technical indicators show positive momentum, the valuation is hampered by ongoing losses. Earnings call insights suggest some operational improvements, but financial instability remains a concern.

Positive Factors

Brand Recognition

Attractive brand recognition among consumers can support more effective lead generation versus other retail lenders.

Strategic Plan

The completion of its 'Vision 2025' plan, which reduced expenses, increased LDI's focus on purchase volume, and simplified the organization structure given the meaningful decline in the mortgage market has been encouraging.

Negative Factors

Interest Rate Volatility

During periods of volatile interest rates, there's an anticipation of a deeper drawdown for the company's valuation.

Leverage and Earnings Volatility

The company's leverage position creates more earnings volatility versus lenders with more operational and financial scale.

Liquidity and Competitiveness

There is limited room to source liquidity and cut expenses, which could restrict competitiveness and leave the company challenged to properly calibrate operations when rates are volatile.

loanDepot Business Overview & Revenue Model

Company Description

loanDepot (LDI) is a leading non-bank mortgage lender based in the United States, specializing in providing a wide range of home loan products and services. Founded in 2010, the company operates in the financial services sector, focusing primarily on residential mortgage lending, including conventional loans, FHA loans, VA loans, and refinancing options. loanDepot leverages advanced technology to streamline the mortgage process, offering customers a user-friendly online platform and personalized service through its network of licensed loan officers.

How the Company Makes Money

loanDepot 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 2.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.14 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.70, and above the 200-day MA of 1.63, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDI.

loanDepot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.90B	11.86	10.29%	3.72%	9.74%	1.66%
VEL	68 Neutral	$733.41M	8.73	15.02%	―	35.12%	25.28%
PFSI	67 Neutral	$5.69B	15.26	10.05%	1.09%	20.77%	96.22%
RKT	61 Neutral	$37.40B	68.51	>-0.01%	―	21.52%	-103.65%
GHLD	58 Neutral	$1.24B	51.05	2.12%	2.49%	34.62%	-7.94%
LDI	57 Neutral	$708.18M	―	-23.67%	―	6.60%	44.77%
UWMC	56 Neutral	$9.12B	37.74	8.18%	7.02%	12.27%	-21.43%

loanDepot Corporate Events

loanDepot Announces President Resignation and Q2 Results

On August 7, 2025, loanDepot announced the resignation of Jeff Walsh as President of LDI Mortgage, effective September 5, 2025, with a transition agreement in place. The company also released its second quarter 2025 financial results, highlighting a 3% increase in revenue to $283 million and a reduction in net loss by 38% compared to the previous quarter. Founder Anthony Hsieh has been appointed as permanent CEO, emphasizing growth and technology-driven efficiency to return to profitability. The company is enhancing its digital transformation efforts by appointing new technology leaders, aiming to strengthen its market position.

loanDepot Appoints Anthony Hsieh as CEO and President

On July 27, 2025, loanDepot appointed Anthony Hsieh as its Chief Executive Officer and President, following his interim CEO role since June 2025. Hsieh, the company’s founder, has a long history with loanDepot and extensive experience in the lending industry. This leadership change is expected to reinforce loanDepot’s strategic direction and operational stability.

loanDepot Issues $150M Term Notes Secured by Ginnie Mae

On July 23, 2025, loanDepot.com, LLC, an indirect subsidiary of loanDepot, Inc., entered into the Series 2025-GT2 Indenture Supplement, issuing $150 million in term notes secured by Ginnie Mae mortgage servicing rights. The notes, priced at a variable rate based on SOFR, mature on July 16, 2030, and were sold to qualified institutional buyers, exempt from registration under the Securities Act of 1933.

loanDepot Updates Credit Agreement with Nomura

On May 30, 2025, loanDepot FA Agency MSR, LLC, a subsidiary of loanDepot.com, LLC, entered into an Omnibus Amendment with Nomura Corporate Funding Americas, LLC (NCFA). This amendment appoints NCFA as the administrative agent and sole lender under a Credit Agreement originally dated December 15, 2023, which provides a revolving line of credit up to $300 million secured by the company’s mortgage servicing rights. The amendment updates the expiration and financial terms, with the credit agreement maturing on May 29, 2026.

loanDepot Issues $200M Term Notes in New Agreement

On May 28, 2025, loanDepot.com, LLC, through its subsidiary loanDepot GMSR Master Trust, entered into the Series 2025-GT1 Indenture Supplement, issuing $200 million in term notes secured by Ginnie Mae mortgage servicing rights. The proceeds were used to redeem the Series 2018-GT1 Term Notes, maturing in October 2025, without incurring termination penalties, thereby streamlining the company’s financial obligations and potentially enhancing its market positioning.