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loanDepot, Inc. (LDI)
NYSE:LDI

loanDepot (LDI) AI Stock Analysis

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loanDepot

(NYSE:LDI)

Rating:48Neutral
Price Target:
loanDepot's overall score of 48 reflects significant financial challenges, with persistent net losses and negative cash flows. The technical analysis suggests mixed signals, with bearish momentum overshadowing some cautious optimism. Valuation remains a concern due to negative earnings. The earnings call highlighted strategic progress and liquidity focus, but also ongoing profitability challenges. The absence of additional impactful corporate events leaves the earnings call as the primary recent influence.

loanDepot (LDI) vs. SPDR S&P 500 ETF (SPY)

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 Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 24.51%|
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 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
45
Neutral
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.
Balance Sheet
50
Neutral
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.
Cash Flow
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.16B1.06B739.27M1.01B3.45B4.14B
Gross Profit1.08B1.06B715.75M975.58M3.41B4.10B
EBITDA-10.99M-354.07M0.000.000.004.39B
Net Income-85.97M-98.33M-110.14M-610.38M623.15M2.01B
Balance Sheet
Total Assets6.42B6.34B6.15B7.10B11.78B10.89B
Cash, Cash Equivalents and Short-Term Investments1.48B421.58M660.71M863.96M419.57M284.22M
Total Debt5.57B4.36B4.27B4.50B9.16B7.38B
Total Liabilities5.95B5.84B5.45B5.69B10.18B9.24B
Stockholders Equity261.57M272.89M353.18M921.47M494.24M1.66B
Cash Flow
Free Cash Flow-795.21M-891.81M-194.83M4.42B-1.52B-2.06B
Operating Cash Flow-766.79M-865.42M-174.22M4.46B-1.47B-2.03B
Investing Cash Flow445.82M495.05M165.66M667.76M296.78M-27.67M
Financing Cash Flow-6.92M151.74M-226.09M-4.77B1.30B2.43B

loanDepot Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.27
Price Trends
50DMA
1.23
Positive
100DMA
1.34
Negative
200DMA
1.77
Negative
Market Momentum
MACD
0.02
Positive
RSI
46.61
Neutral
STOCH
20.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDI, the sentiment is Negative. The current price of 1.27 is below the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.23, and below the 200-day MA of 1.77, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 20.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks
1.
An active, liquid trading market for our Class A Common Stock may not be sustained. Q4, 2024
2.
We use artificial intelligence in our business, and challenges with properly managing its use could result in harm to our brand, reputation, business or customers, and adversely affect our results of operations. Q4, 2024
3.
We are subject to laws, regulations, and guidelines regarding our use of telemarketing; failure to comply with these laws, rules, and guidelines, including the Telephone Consumer Protection Act ("TCPA") and the Telemarketing Sales Rule ("TSR"), could increase our operating costs and adversely impact our business. Q4, 2024

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
VEVEL
68
Neutral
$686.41M9.8213.62%32.62%16.91%
64
Neutral
$6.69B10.886.59%5.05%24.95%-1.55%
62
Neutral
$5.12B15.219.32%1.21%23.79%121.61%
57
Neutral
$1.23B28.463.71%2.53%42.92%64.72%
RKRKT
54
Neutral
$28.44B68.510.45%24.58%-88.86%
LDLDI
48
Neutral
$432.18M-29.48%3.76%16.19%
46
Neutral
$6.56B37.74-5.74%9.76%9.19%-171.38%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LDI
loanDepot
1.27
-0.29
-18.59%
PFSI
PennyMac Financial
99.64
7.81
8.50%
VEL
Velocity Financial
18.54
0.10
0.54%
UWMC
UWM Holding
4.14
-2.20
-34.70%
RKT
Rocket Companies
14.18
1.58
12.54%
GHLD
Guild Holdings
19.77
6.13
44.94%

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
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: May 03, 2025