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Lexinfintech Holdings Ltd (LX)
NASDAQ:LX
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Lexinfintech Holdings
(NASDAQ:LX)
Rating:75Outperform
Price Target:
$7.50
▲(7.76% Upside)
Lexinfintech Holdings (LX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.16B
Dividend Yield2.61%
Average Volume (3M)4.22M
Price to Earnings (P/E)5.4
Beta (1Y)1.57
Revenue Growth3.11%
EPS Growth95.40%
CountryUS
Employees4,667
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding132,592,390
10 Day Avg. Volume3,911,200
30 Day Avg. Volume4,221,745
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.27
Enterprise Value/Ebitda0.67
Forecast
1Y Price Target
$7.50Price Target Upside7.76% 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 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: 3.73%|
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record net profits and significant growth in e-commerce and overall GMV. Despite some challenges related to regulatory impacts and increased funding costs, the company demonstrated resilience through strategic business model adaptations and improved asset quality.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%, marking a record high in the past 14 quarters.
E-commerce GMV Growth
E-commerce GMV increased by 139% year-over-year during the June 18 shopping festival, with the business on a rapid expansion path.
Increased Shareholder Returns
The cash dividend payout ratio was increased from 25% to 30%, and a $60 million share repurchase plan was announced.
Improved Asset Quality
Leading risk indicators improved with a 5% decline in first payment default and a 6% decrease in the 90-days delinquency ratio quarter-over-quarter.
Flexible Business Model Adaptation
Successful adaptation to market conditions by shifting more loan volumes to capital-heavy models, resulting in a 34-basis point increase in net income take rate.
Negative Updates
Impact of New Regulations
The supply of funds for capital-light business reduced due to new loan facilitation regulations, leading to an increase in funding costs.
Minor Fluctuations in Risk Metrics
The collection rates experienced a slight decrease in response to regulatory changes, although offset by improved day 1 delinquency rates.
Company Guidance
During the LexinFintech Holdings Limited second quarter 2025 earnings call, the company reported total GMV reaching RMB 52.9 billion, a 2.4% increase from the previous quarter. Revenue increased by 16% to RMB 3.6 billion, and net profit rose to RMB 511 million, marking a 19% quarter-over-quarter and 126% year-over-year growth. The company's net income margin improved to 14.3%. The call highlighted a focus on enhancing shareholder returns with a raised cash dividend payout ratio from 25% to 30% and a $60 million share repurchase plan. The e-commerce GMV grew by 139% year-over-year during the June 18 shopping festival. Asset quality continued to improve, with the 90-day delinquency ratio declining to 3.1%, and the first payment default rate over 7 days decreased by about 5% from the previous quarter. The company maintains its full-year guidance for significant year-over-year profit growth, underscoring its strategic focus on data analytics, risk management, and refined operations.Lexinfintech Holdings Financial Statement Overview
Summary
Lexinfintech Holdings demonstrates strong revenue growth and stable profitability, with an improving capital structure. However, challenges in cash flow generation and high liabilities need attention 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 | 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 |
| EBITDA | 2.39B | 1.52B | 1.23B | 2.98B | 1.53B |
| Net Income | 1.10B | 1.07B | 819.75M | 2.33B | 594.98M |
Balance Sheet | |||||
| Total Assets | 22.24B | 23.14B | 22.77B | 21.03B | 20.35B |
| Cash, Cash Equivalents and Short-Term Investments | 2.33B | 2.82B | 1.49B | 2.66B | 1.56B |
| Total Debt | 5.27B | 5.51B | 9.10B | 7.48B | 9.26B |
| 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
Neutral
6.96
Price Trends
6.97
Negative
7.65
Negative
6.99
Negative
Market Momentum
-0.09
Negative
53.74
Neutral
85.75
Negative
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 6.96 is above the 20-day moving average (MA) of 6.65, below the 50-day MA of 6.97, and below the 200-day MA of 6.99, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.31B | 6.64 | 17.91% | 3.06% | 5.13% | 25.93% | |
75 Outperform | $1.16B | 5.44 | 14.86% | 2.61% | 3.11% | 95.40% | |
74 Outperform | $504.61M | 2.74 | 14.69% | 6.41% | 12.45% | -36.64% | |
70 Outperform | $677.02M | 17.19 | 4.57% | ― | -39.25% | ― | |
69 Neutral | $1.77B | 24.61 | 5.50% | ― | 7.54% | 70.26% | |
65 Neutral | kr129.11B | 13.97 | 6.07% | 3.43% | 9.23% | -27.83% | |
63 Neutral | $3.03B | 30.59 | 115.73% | ― | 92.95% | 151.46% |
* Financial Sector Average
Performance Comparison
LX
Lexinfintech Holdings
6.96
5.33
326.99%
LC
LendingClub
15.77
4.79
43.62%
YRD
Yiren Digital
6.08
1.67
37.87%
QD
Qudian
4.32
2.52
140.00%
FINV
FinVolution Group
9.04
3.62
66.79%
SEZL
Sezzle Inc.
92.17
71.51
346.13%
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.