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Lexinfintech Holdings Ltd (LX)
NASDAQ:LX
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Lexinfintech Holdings
(NASDAQ:LX)
Rating:73Outperform
Price Target:
$7.50
▲(23.15% Upside)
Lexinfintech Holdings (LX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend Yield4.99%
Average Volume (3M)4.26M
Price to Earnings (P/E)4.8
Beta (1Y)1.38
Revenue Growth3.11%
EPS Growth95.40%
CountryUS
Employees4,667
SectorFinancial
Sector Strength77
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding132,592,390
10 Day Avg. Volume3,099,934
30 Day Avg. Volume4,261,474
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.27
Enterprise Value/Ebitda0.67
Forecast
1Y Price Target
$7.50Price Target Upside23.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Lexinfintech Holdings Business Overview & Revenue Model
Company DescriptionLexinfintech Holdings Ltd. (LX) is a leading technology-driven financial services platform based in China, primarily focused on providing online consumer finance solutions. The company operates in the fintech sector and offers a range of products including personal loans, credit cards, and investment services. Lexinfintech leverages advanced technology and data analytics to enhance its services, catering to the needs of both consumers and merchants.
How the Company Makes MoneyLexinfintech generates revenue through multiple streams, primarily from the interest and fees associated with the loans and credit products it offers to consumers. The company earns interest income from its loan portfolio as well as service fees charged to users for utilizing its platform. Additionally, Lexinfintech engages in partnerships with various financial institutions and merchants, which contribute to its revenue through referral fees and commissions. The company's ability to utilize big data and machine learning for risk assessment allows it to optimize its lending processes, enhancing profitability while maintaining a focus on customer acquisition and retention.
Lexinfintech Holdings Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in net profit, revenue, and shareholder returns, driven by strong performance in e-commerce and effective risk management. Despite facing regulatory challenges and increased funding costs, the company demonstrated resilience and adaptability, maintaining a positive outlook for the year.Q2-2025 Updates
Positive Updates
Record High Net Profit
Net profit reached RMB 511 million, representing a quarter-over-quarter growth of 19% and year-over-year growth of 126%, a record high in the past 14 quarters.
Increased Shareholder Returns
Cash dividend payout ratio raised from 25% to 30% starting in the second half of the year. Announced a $60 million share repurchase plan to be executed within the next 12 months.
Strong E-commerce Growth
E-commerce GMV increased by 139% year-over-year during the June 18 shopping festival, with the business on a rapid expansion path.
Improved Risk Management
Risk indicators showed improvement; first payment default declined by about 5%, day 1 delinquency ratio decreased by about 2%, and 90-days delinquency ratio decreased by 6% quarter-over-quarter.
Robust Revenue Growth
Revenue increased by 16% to RMB 3.6 billion quarter-over-quarter, with tech empowerment service income increasing by 33%.
AI Integration Success
AI models applied in multiple business scenarios improved post-loan collection rates and operational efficiency, with 50 AI agent roles enhancing operational strategy generation and credit strategy review.
Negative Updates
Increased Funding Costs
Funding costs increased due to a reduction in the supply of funds for capital-light business, driven by new regulatory changes.
Regulatory Uncertainty Impact
New regulation on loan facilitation created short-term funding supply tightening and minor fluctuations in risk metrics, such as a slight decrease in collection rates.
Company Guidance
In the second quarter of 2025, LexinFintech Holdings Limited reported robust financial performance, driven by strategic business transformations and strong growth across its ecosystem. The company achieved a total GMV of RMB 52.9 billion, marking a 2.4% increase from the previous quarter. Revenue surged by 16% to RMB 3.6 billion, while net profit reached RMB 511 million, reflecting a quarter-over-quarter growth of 19% and a year-over-year increase of 126%. The net income margin improved to 14.3%, and the net income take rate rose by 34 basis points to 1.92%. LexinFintech announced an increase in its cash dividend payout ratio from 25% to 30% and a $60 million share repurchase plan to enhance shareholder returns. The company also reported significant advancements in its installment e-commerce and tech empowerment businesses, leveraging AI to improve risk management and operational efficiency.Lexinfintech Holdings Financial Statement Overview
Summary
Lexinfintech Holdings shows strong revenue growth and stable profitability, with an improving capital structure. However, challenges in cash flow generation and high liabilities require strategic focus to maintain financial health.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.78
Positive
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.72
Positive
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.07B | 14.20B | 13.06B | 9.87B | 11.38B | 11.65B |
| Gross Profit | 5.20B | 5.74B | 4.51B | 3.03B | 5.75B | 3.63B |
| EBITDA | 2.15B | 2.39B | 1.52B | 1.23B | 2.98B | 1.53B |
| Net Income | 1.33B | 1.10B | 1.07B | 819.75M | 2.33B | 594.98M |
Balance Sheet | ||||||
| Total Assets | 22.62B | 22.24B | 23.14B | 22.77B | 21.03B | 20.35B |
| Cash, Cash Equivalents and Short-Term Investments | 3.17B | 2.33B | 2.82B | 1.49B | 2.66B | 1.56B |
| Total Debt | 5.39B | 5.27B | 5.51B | 9.10B | 7.48B | 9.26B |
| Total Liabilities | 11.41B | 11.50B | 13.43B | 14.12B | 12.96B | 14.81B |
| Stockholders Equity | 11.21B | 10.74B | 9.71B | 8.65B | 8.03B | 5.49B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 834.40M | 2.56B | -49.97M | 2.55B | -297.59M |
| Operating Cash Flow | 0.00 | 1.08B | 2.79B | 98.84M | 2.67B | -211.02M |
| Investing Cash Flow | 0.00 | -904.88M | 2.33B | -2.41B | 414.62M | -2.14B |
| Financing Cash Flow | 0.00 | -387.28M | -3.85B | 1.11B | -1.78B | 1.23B |
Lexinfintech Holdings Technical Analysis
Negative
6.09
Price Trends
6.55
Negative
7.04
Negative
7.06
Negative
Market Momentum
-0.12
Positive
43.09
Neutral
14.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Negative. The current price of 6.09 is below the 20-day moving average (MA) of 6.34, below the 50-day MA of 6.55, and below the 200-day MA of 7.06, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.97B | 5.44 | 18.75% | 3.56% | 8.41% | 34.76% | |
76 Outperform | $500.29M | 2.87 | 13.64% | 6.81% | 12.69% | -35.36% | |
73 Outperform | $1.01B | 4.78 | 14.86% | 4.99% | 3.11% | 95.40% | |
70 Outperform | $741.42M | 10.61 | 4.57% | ― | -39.25% | ― | |
68 Neutral | $18.06B | 11.97 | 10.24% | 3.74% | 9.75% | 1.30% | |
67 Neutral | $1.92B | 26.05 | 5.50% | ― | 7.54% | 70.26% | |
63 Neutral | $2.89B | 29.13 | 115.73% | ― | 92.95% | 151.46% |
* Financial Sector Average
Performance Comparison
LX
Lexinfintech Holdings
6.09
4.48
278.26%
LC
LendingClub
16.60
5.65
51.60%
YRD
Yiren Digital
5.73
1.51
35.78%
QD
Qudian
4.44
2.64
146.67%
FINV
FinVolution Group
7.91
2.90
57.88%
SEZL
Sezzle Inc.
85.85
64.74
306.68%
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.