Lexinfintech Holdings (LX) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: 3.08%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.55
• Revenue Growth: 7.53%
• EPS Growth: 37.86%
• Country: US
• Employees: 4,667
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): 0.17
• Shares Outstanding: 132,592,390
• 10 Day Avg. Volume: 2,011,367
• 30 Day Avg. Volume: 2,189,922
• PEG Ratio: -0.05
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -51.50
• 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: $13.60
• Price Target Upside: 85.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $8.00 ▲(8.99%Upside)

Lexinfintech Holdings is bolstered by strong earnings call outcomes and attractive valuation metrics. While financial performance is generally positive, the need to address cash flow and liability concerns is critical. Technical indicators suggest short-term caution, but the long-term outlook remains promising.

Lexinfintech Holdings Business Overview & Revenue Model

Company Description

LexinFintech Holdings Ltd. (LX) is a leading fintech company based in China, primarily focused on providing online consumer financial services. The company operates a technology-driven platform that facilitates consumer credit services, offering products like installment loans and personal loans. LexinFintech leverages big data, artificial intelligence, and other technologies to enhance user experience, risk management, and operational efficiency.

How the Company Makes Money

LexinFintech 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 displays strong revenue growth and stable profitability, supported by an improving capital structure. However, challenges in cash flow generation and high liabilities necessitate strategic focus to maintain financial health and support sustainable growth.

Income Statement

Lexinfintech Holdings showed strong revenue growth with a 8.8% increase from 2023 to 2024. The gross profit margin improved to approximately 40.4%, reflecting efficient cost management. Net profit margin remained healthy at 7.7%, indicating consistent profitability. However, the EBIT margin of 21.2% and EBITDA margin of 16.8% suggest room for improvement in operational efficiency and cost control.

Balance Sheet

The company's debt-to-equity ratio improved to 0.49 in 2024, displaying a stronger capital structure. Return on equity (ROE) was solid at 10.2%, showing effective use of equity for generating returns. The equity ratio improved to 48.3%, suggesting a balanced asset financing strategy. However, the high level of total liabilities remains a potential risk factor.

Cash Flow

Lexinfintech Holdings saw a decline in free cash flow from 2023 to 2024, indicating challenges in converting profits to cash. The absence of operating and free cash flow metrics for 2024 raises concerns about cash management. The company must focus on improving cash flow generation to support future growth and reduce financial risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.20B	13.06B	9.87B	11.38B	11.65B
	Gross Profit
5.74B	4.51B	3.03B	5.75B	3.63B
	EBIT
3.00B	1.88B	-347.81M	3.04B	1.42B
	EBITDA
2.39B	1.52B	1.23B	2.98B	1.53B
	Net Income Common Stockholders
1.10B	1.07B	819.75M	2.33B	594.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.25B	2.82B	1.49B	2.66B	1.56B
	Total Assets
22.24B	23.14B	22.77B	21.03B	20.35B
	Total Debt
5.27B	5.51B	9.10B	7.48B	9.26B
	Net Debt
3.01B	2.89B	7.61B	4.82B	7.70B
	Total Liabilities
11.50B	13.43B	14.12B	12.96B	14.81B
	Stockholders Equity
10.74B	9.71B	8.65B	8.03B	5.49B
Cash Flow		Free Cash Flow
834.40M	2.56B	-49.97M	2.55B	-297.59M
	Operating Cash Flow
1.08B	2.79B	98.84M	2.67B	-211.02M
	Investing Cash Flow
-904.88M	2.33B	-2.41B	414.62M	-2.14B
	Financing Cash Flow
-387.28M	-3.85B	1.11B	-1.78B	1.23B

Lexinfintech Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Neutral. The current price of 7.34 is below the 20-day moving average (MA) of 7.80, below the 50-day MA of 7.86, and above the 200-day MA of 6.00, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 44.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LX.

Lexinfintech Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	82 Outperform	$2.18B	6.27	17.91%	3.22%	4.99%	25.93%
SEZL	78 Outperform	$4.40B	44.67	137.28%	―	91.69%	702.31%
YRD	76 Outperform	$638.64M	2.94	17.96%	2.97%	17.03%	-23.72%
LX	73 Outperform	$1.20B	6.74	12.60%	3.08%	7.53%	37.86%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
QD	64 Neutral	$483.82M	12.29	2.77%	―	0.54%	―
LC	60 Neutral	$1.25B	24.67	3.86%	―	5.72%	31.82%