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Lexinfintech Holdings Ltd (LX)
NASDAQ:LX
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Lexinfintech Holdings (LX) AI Stock Analysis

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LX

Lexinfintech Holdings

(NASDAQ:LX)

Rating:72Outperform
Price Target:
$8.00
▲(7.82%Upside)
Lexinfintech Holdings benefits from strong financial performance and attractive valuation metrics, which are the most significant factors contributing to its score. The earnings call provided positive insights into profit growth and strategic expansions, although technical indicators suggest bearish momentum. The company's challenges in cash flow generation and high liabilities are areas that require attention.

Lexinfintech Holdings (LX) vs. SPDR S&P 500 ETF (SPY)

Lexinfintech Holdings Business Overview & Revenue Model

Company DescriptionLexinfintech Holdings Ltd. (LX) is a leading online consumer finance platform in China, primarily focused on serving educated young adults. The company leverages advanced technology, big data, and extensive user insights to offer a wide range of financial products and services. Its core offerings include installment purchase loans, personal loans, and other financial services. Through its proprietary platform, Lexinfintech connects consumers with financial institutions, enabling streamlined access to credit and financial management tools.
How the Company Makes MoneyLexinfintech Holdings generates revenue primarily through its consumer finance services. The company earns money by providing installment loans and personal loans to its users, and it charges interest on these loans. Additionally, Lexinfintech facilitates transactions between consumers and financial institutions, earning service fees and commissions. The company also partners with various merchants and e-commerce platforms, integrating its financial services into these ecosystems, which allows it to earn additional fees. Lexinfintech's use of data analytics and technology enhances customer acquisition and retention, contributing significantly to its revenue streams.

Lexinfintech Holdings Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: -14.42%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant profit growth, improved risk management, and strategic business expansions, particularly in e-commerce and overseas operations. However, there were notable declines in lending-related and e-commerce platform revenues due to strategic shifts and market conditions.
Q1-2025 Updates
Positive Updates
Record GAAP Net Profit
GAAP net profit reached CNY 430 million, a record high in 13 quarters, representing quarter-over-quarter growth of 18.6% and year-over-year growth of 113%.
E-commerce GMV Growth
Approval rate of installment applications increased significantly, driving e-commerce GMV to increase by 16.2%.
Overseas Business Profitability
Customer acquisition costs decreased by 19% quarter-over-quarter, and the overseas business achieved profitability.
Improved Net Income Margin
Net income margin increased from 9.9% to 13.9%.
Enhanced Risk Management
Day 1 delinquency ratio decreased by about 11%, and 90 days delinquency ratio decreased by 9% quarter-over-quarter.
Increased Dividend Payout Ratio
The Board approved increasing the dividend payout ratio to 30% of net profit, effective from the second half of 2025.
Negative Updates
Decline in Lending-Related Revenue
Total revenue from lending-related business decreased by 15% quarter-over-quarter due to lower APR, increased early payoffs, and GMV volume shift to the capital-light model.
Installment E-commerce Revenue Decline
Installment e-commerce platform service income decreased by 16.4%, attributed to structural volume mix changes.
Company Guidance
During the Lexin First Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance updates. Lexin reported a GAAP net profit of CNY 430 million, marking a record high in 13 quarters, with a quarter-over-quarter growth of 18.6% and a year-over-year increase of 113%. The net income margin rose to 13.9% from 9.9% in the previous quarter, and the net profit take rate increased to 1.58% from 1.31%. The company's installment e-commerce business achieved a 16.2% increase in GMV, while the customer acquisition costs for their overseas business decreased by 19% quarter-over-quarter. Lexin reaffirmed its full-year 2025 profit guidance, anticipating substantial year-over-year growth. Additionally, the company announced an increase in the dividend payout ratio to 30% of net profit, effective from the second half of 2025.

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
78
Positive
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
72
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.20B13.06B9.87B11.38B11.65B
Gross Profit5.74B4.51B3.03B5.75B3.63B
EBITDA2.39B1.52B1.23B2.98B1.53B
Net Income1.10B1.07B819.75M2.33B594.98M
Balance Sheet
Total Assets22.24B23.14B22.77B21.03B20.35B
Cash, Cash Equivalents and Short-Term Investments2.33B2.82B1.49B2.66B1.56B
Total Debt5.27B5.51B9.10B7.48B9.26B
Total Liabilities11.50B13.43B14.12B12.96B14.81B
Stockholders Equity10.74B9.71B8.65B8.03B5.49B
Cash Flow
Free Cash Flow834.40M2.56B-49.97M2.55B-297.59M
Operating Cash Flow1.08B2.79B98.84M2.67B-211.02M
Investing Cash Flow-904.88M2.33B-2.41B414.62M-2.14B
Financing Cash Flow-387.28M-3.85B1.11B-1.78B1.23B

Lexinfintech Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.42
Price Trends
50DMA
7.42
Negative
100DMA
8.06
Negative
200DMA
6.75
Positive
Market Momentum
MACD
-0.10
Negative
RSI
52.23
Neutral
STOCH
68.67
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 7.42 is above the 20-day moving average (MA) of 7.05, above the 50-day MA of 7.42, and above the 200-day MA of 6.75, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$2.49B7.1617.91%0.41%5.13%25.93%
79
Outperform
$4.68B47.56137.28%91.69%702.31%
74
Outperform
$549.55M2.9714.69%0.94%12.45%-36.64%
72
Outperform
$1.25B7.0112.60%0.36%7.53%37.86%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
63
Neutral
$546.57M13.882.77%0.54%
62
Neutral
$1.53B30.163.86%5.72%31.82%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LX
Lexinfintech Holdings
7.24
5.57
333.53%
LC
LendingClub
13.17
2.37
21.94%
YRD
Yiren Digital
6.36
2.01
46.21%
QD
Qudian
3.31
1.40
73.30%
FINV
FinVolution Group
9.42
4.40
87.65%
SEZL
Sezzle Inc.
140.72
126.94
921.19%
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.Date of analysis: Jul 22, 2025