Lexinfintech Holdings (LX) AI Stock Analysis

• Market Cap: $555.27M
• Dividend Yield: 9.21%
• Average Volume (3M): 4.49M
• Price to Earnings (P/E): 2.4
• Beta (1Y): 1.37
• Revenue Growth: -5.81%
• EPS Growth: 123.38%
• Country: US
• Employees: 4,667
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.21
• Shares Outstanding: 132,592,390
• 10 Day Avg. Volume: 3,196,558
• 30 Day Avg. Volume: 4,485,979
• PEG Ratio: 2.58
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 8.41
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 0.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.11
• Revenue Forecast (FY): $14.58B

• Rating: 69 Neutral
• Price Target: $4.00 ▲(21.21% Upside)

Lexinfintech Holdings' strong valuation and financial performance are tempered by technical weaknesses and regulatory challenges. The stock's undervaluation and high dividend yield are significant positives, but bearish technical indicators and cash flow concerns present risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust business model and effective market strategies, enhancing long-term financial stability.

AI Technology Deployment

Advancements in AI technology improve operational efficiency and risk management, strengthening competitive advantage and future growth potential.

E-commerce Expansion

Significant growth in e-commerce indicates successful diversification and potential for increased market share in digital retail.

Negative Factors

Cash Flow Challenges

Declining cash flow can limit the company's ability to invest in growth opportunities and meet financial obligations, posing a risk to long-term sustainability.

Regulatory Impact

Regulatory changes affecting loan pricing can reduce profitability and business volume, challenging the company's revenue model and market position.

Industry-Wide Risk Volatility

Increased delinquency rates indicate heightened credit risk, potentially impacting financial performance and necessitating stronger risk management.

Lexinfintech Holdings Business Overview & Revenue Model

Company Description

Lexinfintech Holdings Ltd. is a leading technology-driven consumer finance platform in China, primarily focused on serving the needs of young and underserved consumers. The company operates in the financial services sector, offering a range of products including online consumer credit, personal loans, and various financial services through its proprietary technology platform. Lexinfintech leverages big data analytics and artificial intelligence to enhance user experience and optimize credit risk assessment, thereby connecting borrowers with lenders efficiently.

How the Company Makes Money

Lexinfintech generates revenue through a diversified model primarily centered around interest income from consumer loans, service fees, and transaction fees. The company earns interest on the loans it disburses to consumers, which constitutes a significant portion of its revenue. Additionally, Lexinfintech charges service fees to borrowers for processing loans and transaction fees for facilitating financial services. Strategic partnerships with financial institutions and technology providers also enable Lexinfintech to expand its offerings and enhance its customer acquisition strategies, contributing to its overall earnings. The company's focus on risk management and data-driven decision-making further supports its revenue generation by minimizing default rates and maximizing loan performance.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.01B	14.20B	13.06B	9.87B	11.38B	11.65B
Gross Profit	5.13B	5.74B	4.51B	3.03B	5.75B	3.63B
EBITDA	1.99B	2.39B	1.52B	1.23B	2.98B	870.44M
Net Income	1.61B	1.10B	1.07B	819.75M	2.33B	594.98M
Balance Sheet
Total Assets	22.51B	22.24B	23.14B	22.77B	21.03B	20.35B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.33B	2.82B	1.76B	2.66B	1.56B
Total Debt	4.88B	5.27B	5.51B	9.26B	7.67B	9.33B
Total Liabilities	10.91B	11.50B	13.43B	14.12B	12.96B	14.81B
Stockholders Equity	11.60B	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

• Technical Analysis Sentiment: Negative
• Last Price: 3.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.3 is below the 20-day moving average (MA) of 3.99, below the 50-day MA of 4.71, and below the 200-day MA of 6.78, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 31.74 is Neutral, neither overbought nor oversold. The STOCH value of 6.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LX.

Lexinfintech Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QFIN	72 Outperform	$2.56B	2.88	28.65%	7.35%	13.96%	39.32%
FINV	71 Outperform	$1.28B	3.43	17.76%	5.50%	9.32%	29.40%
YRD	70 Outperform	$381.05M	2.21	12.53%	9.52%	10.48%	-30.67%
LX	69 Neutral	$555.27M	2.36	15.88%	9.21%	-5.81%	123.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	63 Neutral	$805.82M	7.29	6.75%	―	-62.48%	1441.74%
LU	52 Neutral	$2.43B	―	―	―	―	―

Lexinfintech Holdings Corporate Events

LexinFintech Reports Strong Q3 2025 Results Amid Regulatory Changes

LexinFintech Holdings Ltd. reported its unaudited financial results for the third quarter of 2025, highlighting a net income of RMB521 million, a 68% increase year-over-year. The company successfully navigated regulatory changes by adjusting its operations to comply with new interest rate caps, achieving a record high net income in the past 15 quarters. Despite a challenging environment, LexinFintech’s loan originations reached RMB50.9 billion, and revenue was RMB3.4 billion, reflecting its operational resilience. The company also increased its dividend payout ratio and repurchased US$25 million worth of ADSs, demonstrating a commitment to enhancing shareholder returns.