Lexinfintech Holdings (LX) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: 0.36%
• Average Volume (3M): 2.81M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.56
• Revenue Growth: 7.53%
• EPS Growth: 37.86%
• Country: US
• Employees: 4,667
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 0.17
• Shares Outstanding: 132,592,390
• 10 Day Avg. Volume: 4,030,047
• 30 Day Avg. Volume: 2,806,895
• PEG Ratio: 0.32
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $8.00
• Price Target Upside: 7.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• 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 Business Overview & Revenue Model

Company Description

Lexinfintech 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 Money

Lexinfintech 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 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.

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
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

• Technical Analysis Sentiment: Positive
• Last Price: 7.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	82 Outperform	$2.49B	7.16	17.91%	0.41%	5.13%	25.93%
SEZL	79 Outperform	$4.68B	47.56	137.28%	―	91.69%	702.31%
YRD	74 Outperform	$549.55M	2.97	14.69%	0.94%	12.45%	-36.64%
LX	72 Outperform	$1.25B	7.01	12.60%	0.36%	7.53%	37.86%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
QD	63 Neutral	$546.57M	13.88	2.77%	―	0.54%	―
LC	62 Neutral	$1.53B	30.16	3.86%	―	5.72%	31.82%