Lendway (LDWY) AI Stock Analysis

• Market Cap: $6.66M
• Dividend Yield: N/A
• Average Volume (3M): 2.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 97.63%
• EPS Growth: -945.35%
• Country: US
• Employees: 151
• Sector: Communication Services
• Sector Strength: 70
• Industry: Advertising Agencies
• EPS (TTM): -3.31
• Shares Outstanding: 1,769,599
• 10 Day Avg. Volume: 1,189
• 30 Day Avg. Volume: 2,490
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.21
• Price to Cash Flow (P/CF): -0.20
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Lendway's stock is rated poorly due to significant financial challenges, including negative equity and inconsistent cash flows. The technical indicators suggest a bearish trend with no immediate signs of recovery. Valuation is unattractive with a negative P/E ratio and no dividend yield. Overall, the stock faces substantial headwinds without positive earnings guidance or corporate events to offset these issues.

Lendway Business Overview & Revenue Model

Company Description

Lendway (LDWY) is a financial technology company specializing in providing innovative lending solutions to small and medium-sized enterprises (SMEs). Operating within the financial services sector, Lendway offers a suite of products designed to streamline the lending process, including an online platform for loan applications and management, as well as analytics tools for risk assessment and portfolio management.

How the Company Makes Money

Lendway generates revenue primarily through the interest charged on loans provided to SMEs. The company employs a digital platform to facilitate the loan application process, allowing for efficient underwriting and risk assessment, which enables competitive interest rates. Key revenue streams include origination fees, servicing fees, and interest income from the loans disbursed. Additionally, Lendway partners with financial institutions to offer co-branded lending solutions, expanding its reach and customer base while earning commission on loans facilitated through these partnerships.

Lendway Financial Statement Overview

Summary

Lendway's financial performance is weak. The income statement shows consistent losses, poor margins, and operational inefficiencies. The balance sheet highlights severe leverage issues with negative equity, and cash flow is erratic with significant liquidity concerns. Strategic restructuring is critical to enhance financial health.

Income Statement

Lendway's income statement reveals significant challenges. The company has struggled with consistent losses, evident from the negative net income and EBIT across multiple years, including the latest year. Revenue growth in 2024 was strong, but margins remain poor, with negative EBIT and EBITDA margins in the most recent year. This indicates operational inefficiencies and a need for strategic improvements.

Balance Sheet

The balance sheet exhibits high financial risk, with total debt significantly outweighing stockholders' equity in 2024, indicating a negative equity position. The debt-to-equity ratio is undefined due to zero equity, highlighting severe leverage issues. Over time, the equity has dwindled, raising concerns about the company's financial stability and ability to sustain operations.

Cash Flow

Cash flow analysis shows erratic patterns. Free cash flow has significantly decreased, and operating cash flow in 2024 was non-existent, pointing to liquidity issues. Although there was a positive free cash flow in 2022, the lack of consistent positive cash flow trends highlights sustainability challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
37.77M	0.00	18.80M	19.50M	17.48M
	Gross Profit
6.51M	-7.00K	3.30M	3.23M	3.02M
	EBIT
-6.90M	-3.52M	-2.44M	-4.79M	-4.88M
	EBITDA
-6.90M	-2.99M	-2.38M	-3.40M	-4.33M
	Net Income Common Stockholders
-5.74M	2.41M	10.05M	-3.53M	-4.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	16.08M	14.52M	3.85M	7.13M
	Total Assets
0.00	16.67M	20.97M	10.65M	14.29M
	Total Debt
87.88M	7.00K	144.00K	184.00K	1.11M
	Net Debt
87.88M	-16.07M	-14.38M	-3.67M	-6.02M
	Total Liabilities
87.88M	1.14M	7.57M	7.46M	7.62M
	Stockholders Equity
0.00	15.53M	13.40M	3.19M	6.67M
Cash Flow		Free Cash Flow
0.00	469.00K	10.63M	-3.11M	-1.64M
	Operating Cash Flow
0.00	518.00K	10.66M	-3.00M	-1.58M
	Investing Cash Flow
0.00	1.51M	-29.00K	-90.00K	139.00K
	Financing Cash Flow
0.00	-473.00K	39.00K	-187.00K	1.06M

Lendway Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDWY, the sentiment is Negative. The current price of 3.74 is below the 20-day moving average (MA) of 3.79, below the 50-day MA of 4.01, and below the 200-day MA of 4.07, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 53.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LDWY.

Lendway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QFIN	84 Outperform	$5.83B	7.72	27.18%	2.62%	3.88%	56.29%
ENVA	77 Outperform	$2.58B	13.93	17.19%	―	25.51%	36.96%
Sector *	59 Neutral	$27.83B	1.88	-18.16%	4.00%	2.13%	-44.45%
LC	53 Neutral	$1.17B	23.11	3.96%	―	3.63%	27.77%
UPST	51 Neutral	$4.31B	―	-20.27%	―	24.50%	49.38%
SOS	50 Neutral	$6.45M	―	-0.89%	―	-35.46%	60.83%
LDWY	37 Underperform	$6.66M	―	-47.89%	―	97.63%	-945.35%