Lexinfintech Holdings (LX) AI Stock Analysis

• Market Cap: $479.55M
• Dividend Yield: 8.86%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 2.0
• Beta (1Y): 1.38
• Revenue Growth: -0.60%
• EPS Growth: 135.15%
• 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: 1,384,501
• 30 Day Avg. Volume: 1,606,926
• 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: 12.39
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 3.29
• 1Y Price Target: $3.50
• Price Target Upside: 6.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $3.00 ▼(-9.09% Downside)

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

Record Net Profit Growth

Sustained, large YoY net profit growth indicates robust core earnings power and resilient loan economics. Record profits improve retained earnings and support capital returns and reinvestment, providing durable buffer for regulatory shocks and strategic initiatives.

Improved Capital Structure

Lower leverage and a near-50% equity ratio reduce refinancing and liquidity risk, enhancing financial flexibility. A mid-teens ROE indicates effective use of equity capital, supporting sustainable growth and capacity to absorb credit cycles over the next several quarters.

AI Deployment and Platform Growth

Material AI improvements strengthen underwriting, automate decisions, and scale risk screening. Higher identification accuracy sustains credit quality and lowers costs per loan, creating a durable competitive advantage in customer acquisition and risk-adjusted returns.

Negative Factors

Weak Cash Conversion

Deteriorating free cash flow signals difficulty converting accounting profits into cash, limiting internal funding for lending, dividend sustainability, and buybacks. Persistent cash conversion weakness raises refinancing and liquidity risk across a multi-quarter horizon.

Regulatory Pricing Constraints

Interest-rate caps structurally compress yield on new originations and force re-pricing of the loan book. Reduced access to higher-margin segments changes customer mix and lowers sustainable net interest income for several quarters as the business adapts.

Rising Early Delinquencies

Higher immediate delinquencies imply growing asset-quality pressure that can persist as macro or liquidity stress continues. Elevated early losses degrade lifetime returns on originations and increase provisioning, pressuring margins and capital over time.

Lexinfintech Holdings Business Overview & Revenue Model

Company Description

LexinFintech 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 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 improved 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.

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	4.97B	5.03B	4.51B	3.03B	5.75B	3.63B
EBITDA	1.81B	1.51B	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 above the 20-day moving average (MA) of 3.05, above the 50-day MA of 3.22, and below the 200-day MA of 5.59, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 30.95 is Neutral, neither overbought nor oversold. The STOCH value of 11.51 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
YRD	73 Outperform	$343.03M	1.99	12.53%	10.37%	10.48%	-30.67%
QFIN	72 Outperform	$1.78B	2.27	28.65%	7.30%	13.96%	39.32%
FINV	71 Outperform	$1.30B	3.50	17.73%	5.20%	9.32%	29.40%
LX	69 Neutral	$479.55M	2.01	16.09%	8.86%	-0.60%	135.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LU	52 Neutral	$2.34B	-3.49	―	―	―	―

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.

The most recent analyst rating on (LX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Lexinfintech Holdings stock, see the LX Stock Forecast page.