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Lexinfintech Holdings Ltd (LX)
NASDAQ:LX
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Lexinfintech Holdings
(NASDAQ:LX)
79Outperform
Lexinfintech Holdings (LX) vs. S&P 500 (SPY)
Market Cap
$1.77B
Dividend Yield1.13%
Average Volume (3M)4.54M
Price to Earnings (P/E)12.0
Beta (1Y)1.57
Revenue Growth10.06%
EPS Growth0.04%
CountryUS
Employees4,268
SectorFinancial
Sector Strength84
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.90
Shares Outstanding128,741,780
10 Day Avg. Volume5,306,812
30 Day Avg. Volume4,541,617
Financial Highlights & Ratios
PEG Ratio275.73
Price to Book (P/B)N/A
Price to Sales (P/S)1.03
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.60Price Target Upside22.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Lexinfintech Holdings Business Overview & Revenue Model
Company DescriptionLexinFintech Holdings Ltd., through its subsidiaries, offers online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as provides online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was incorporated in 2013 and is headquartered in Shenzhen, the People's Republic of China.
How the Company Makes MoneyLexinFintech Holdings generates revenue through various streams, primarily centered around its consumer finance platform. The company earns money by charging fees and interest on the loans provided to consumers. These consist of origination fees, which are charged upfront when a loan is issued, and interest income from the outstanding loan balances over time. Additionally, LexinFintech collaborates with financial institutions to facilitate loan funding, earning service fees for matching consumers with these partners. The company also offers membership services, where users pay for premium benefits and access to exclusive products, further diversifying its income sources.
Lexinfintech Holdings Financial Statement Overview
Summary
Lexinfintech Holdings demonstrates a strong financial recovery with improved profitability and cash generation. The income and cash flow statements reflect positive momentum, but the balance sheet reveals concerns about leverage, which need careful management.Income Statement
Lexinfintech Holdings has shown a notable improvement in revenue and profitability in the most recent year. The gross profit margin improved significantly from the previous year, and the company turned its EBIT from negative to positive, indicating better operational efficiency. However, the revenue growth over the five-year period was inconsistent, with a decrease in 2021. The net profit margin is healthy, demonstrating the company's ability to convert revenue into profit effectively.75
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, indicating some reliance on debt financing but not excessively so. The return on equity has improved, showing better utilization of equity to generate profits. Although the equity ratio suggests a stable financial structure, the high total liabilities relative to assets remain a concern, which could pose risks if cash flows weaken.65
Positive
Cash Flow
Cash flow analysis shows significant recovery in operating cash flow, marking a positive turnaround from previous periods. The company's free cash flow growth is remarkable, indicating improved cash generation capabilities. The ratio of operating cash flow to net income is strong, reflecting efficient cash conversion. However, the history of fluctuating free cash flow in earlier years suggests potential volatility.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.90B | 13.06B | 9.87B | 11.38B | 11.65B | 10.60B | Gross Profit |
| 5.16B | 4.51B | 3.03B | 5.75B | 3.63B | 4.99B | EBIT |
| 2.68B | 1.88B | -347.81M | 3.04B | 1.42B | 2.70B | EBITDA |
| 2.58B | 1.52B | 1.23B | 2.98B | 1.53B | 2.83B | Net Income Common Stockholders |
| 810.88M | 1.07B | 819.75M | 2.33B | 594.98M | 2.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.29B | 2.82B | 1.49B | 2.66B | 1.56B | 2.09B | Total Assets |
| 24.60B | 23.14B | 22.77B | 21.03B | 20.35B | 19.24B | Total Debt |
| 10.02B | 5.51B | 9.10B | 7.48B | 9.26B | 8.23B | Net Debt |
| 7.73B | 2.89B | 7.61B | 4.82B | 7.70B | 6.14B | Total Liabilities |
| 15.58B | 13.43B | 14.12B | 12.96B | 14.81B | 12.64B | Stockholders Equity |
| 9.01B | 9.71B | 8.65B | 8.03B | 5.49B | 6.60B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 2.56B | -49.97M | 2.55B | -297.59M | -828.37M | Operating Cash Flow |
| 0.00 | 2.79B | 98.84M | 2.67B | -211.02M | -778.50M | Investing Cash Flow |
| 0.00 | 2.33B | -2.41B | 414.62M | -2.14B | -783.58M | Financing Cash Flow |
| 0.00 | -3.85B | 1.11B | -1.78B | 1.23B | 3.06B |
Lexinfintech Holdings Technical Analysis
Positive
11.06
Price Trends
8.39
Positive
6.56
Positive
4.27
Positive
Market Momentum
0.72
Negative
67.52
Neutral
76.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Positive. The current price of 11.06 is above the 20-day moving average (MA) of 9.53, above the 50-day MA of 8.39, and above the 200-day MA of 4.27, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 76.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LX.
Lexinfintech Holdings Risk Analysis
Lexinfintech Holdings disclosed 106 risk factors in its most recent earnings report. Lexinfintech Holdings 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
Lexinfintech Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $606.23M | 2.76 | 17.96% | 2.59% | 17.07% | -8.81% | |
84 Outperform | $7.36B | 7.83 | 27.15% | 2.58% | 3.88% | 56.29% | |
79 Outperform | $1.77B | 11.96 | 10.77% | 1.13% | 10.06% | 0.04% | |
77 Outperform | $2.56B | 7.98 | 16.47% | 2.36% | 2.51% | 7.06% | |
71 Outperform | $1.39B | 24.78 | 10.62% | ― | 43.68% | 77.18% | |
64 Neutral | $14.46B | 10.12 | 8.75% | 4.25% | 17.00% | -11.86% |
* Financial Sector Average
Performance Comparison
LX
Lexinfintech Holdings
11.06
9.36
550.59%
YRD
Yiren Digital
6.95
2.43
53.76%
FINV
FinVolution Group
9.86
5.15
109.34%
QFIN
Qifu Technology
44.45
26.84
152.41%
TIGR
Up Fintech Holding
8.83
5.42
158.94%
LXEH
Lixiang Education Holding Co
10.26
5.93
136.95%
Lexinfintech Holdings Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: 4.44% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Positive
LexinFintech's earnings call indicated a positive trajectory with significant improvements in profit growth, risk management, and technological investments. However, the stability in GMV and ongoing challenges with legacy loans highlight areas for continued focus. The strategic increase in dividend payout also suggests confidence in future performance.Highlights
Consistent Profit Growth
LexinFintech reported a significant increase in net income by 17% quarter-over-quarter, reaching RMB363 million, driven by a decline in credit costs and improved asset quality.
Improved Risk Management
The company enhanced its risk management capabilities, leading to a 4% decline in day one delinquency ratio and a 3% decline in the 90-day delinquency ratio.
Technological Advancements
LexinFintech invested RMB151 million in R&D, focusing on AI and big models, which improved efficiency across multiple operations, boosting coding efficiency by approximately 35%.
Increased Dividend Payout
The company announced an increase in the dividend payout ratio to 25% of net profit starting in 2025, reflecting confidence in future profit growth.
Lowlights
Stable GMV
The total GMV remained relatively stable, showing no significant growth, which might indicate challenges in expanding the customer base or market penetration.
Challenges with Legacy Loans
The company noted that legacy loans continue to drag overall performance, although improvements in new loan quality are expected to mitigate this over time.
Company Guidance
In the fourth quarter of 2024, LexinFintech reported significant financial and operational improvements, driven by robust risk management and data analytics capabilities. The company's outstanding loan balance was RMB110 billion, with a GMV of RMB52 billion, revenue of RMB3.7 billion, and non-GAAP profit of RMB390 million. New loans facilitated showed improved quality, with risk indicators such as FPD over seven days and FPD over 30 days improving by 8% and 9%, respectively, compared to the third quarter. The day one delinquency ratio decreased by 4%, and the 90-day delinquency ratio decreased by 3%. The company also invested RMB151 million in research and development, enhancing AI models and risk management tools, which improved risk identification accuracy by 15% and stability by 10%. Looking forward to 2025, LexinFintech aims for significant profit growth, maintaining a prudent operating strategy while increasing its dividend payout ratio to 25% of net profit.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.