LexinFintech Holdings (DB:1LFA) - Share price, News & Analysis

1LFA fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	6/6
Financial Health	4/6
Dividends	0/6

1LFA Stock Overview

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumption and consumer finance platform for young professionals in the People’s Republic of China.

Rewards

Trading at 88% below our estimate of its fair value

Earnings are forecast to grow 2.98% per year

Earnings grew by 292.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

LexinFintech Holdings Competitors

JD.com

NasdaqGS:JD

US$94.2b

Suning.com

SZSE:002024

CN¥29.5b

Price History & Performance

Summary of all time highs, changes and price drops for LexinFintech Holdings
Historical stock prices
Current Share Price	US$2.54
52 Week High	US$11.10
52 Week Low	US$1.76
Beta	0.78
1 Month Change	3.25%
3 Month Change	-15.89%
1 Year Change	-65.44%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-67.35%

Shareholder Returns

	1LFA	DE Consumer Finance	DE Market
7D	3.3%	-0.8%	-0.8%
1Y	-65.4%	-22.8%	-10.4%

Return vs Industry: 1LFA underperformed the German Consumer Finance industry which returned -22.8% over the past year.

Return vs Market: 1LFA underperformed the German Market which returned -10.4% over the past year.

Price Volatility

Is 1LFA's price volatile compared to industry and market?
1LFA volatility
1LFA Average Weekly Movement	14.2%
Consumer Finance Industry Average Movement	7.2%
Market Average Movement	6.3%
10% most volatile stocks in DE Market	10.2%
10% least volatile stocks in DE Market	3.3%

Stable Share Price: 1LFA is more volatile than 90% of German stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: 1LFA's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

Founded	Employees	CEO	Website
2013	3,313	Jay Xiao	https://www.lexin.com

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumption and consumer finance platform for young professionals in the People’s Republic of China. The company operates Fenqile.com, a consumption and consumer finance platform that offers installment purchase loans, personal installment loans, and other loan products, as well as provides online direct sales with installment payment terms; and Le Card, a membership platform, which offers savings, benefits, and membership privileges to food and beverage, apparel, hospitality, and leisure sectors. It also matches user loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, third-party commercial banks, consumer finance companies, institutional funding partners, investors of its asset-backed securities, and other licensed financial institutions.

LexinFintech Holdings Fundamentals Summary

How do LexinFintech Holdings's earnings and revenue compare to its market cap?
1LFA fundamental statistics
Market Cap	CN¥3.08b
Earnings (TTM)	CN¥2.33b
Revenue (TTM)	CN¥11.38b

1.3x

P/E Ratio

0.3x

P/S Ratio

Is 1LFA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1LFA income statement (TTM)
Revenue	CN¥11.38b
Cost of Revenue	CN¥2.16b
Gross Profit	CN¥6.28b
Other Expenses	CN¥3.95b
Earnings	CN¥2.33b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	12.82
Gross Margin	55.19%
Net Profit Margin	20.51%
Debt/Equity Ratio	92.7%

How did 1LFA perform over the long term?

See historical performance and comparison

Valuation

Is LexinFintech Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 1LFA (€2.54) is trading below our estimate of fair value (€21.23)

Significantly Below Fair Value: 1LFA is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 1LFA is good value based on its PE Ratio (1.3x) compared to the European Consumer Finance industry average (11.8x).

PE vs Market: 1LFA is good value based on its PE Ratio (1.3x) compared to the German market (18.8x).

Price to Earnings Growth Ratio

PEG Ratio: 1LFA is good value based on its PEG Ratio (0.4x)

Price to Book Ratio

PB vs Industry: 1LFA is good value based on its PB Ratio (0.4x) compared to the XE Consumer Finance industry average (1x).

Future Growth

How is LexinFintech Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1LFA's forecast earnings growth (3% per year) is above the savings rate (-0.05%).

Earnings vs Market: 1LFA's earnings (3% per year) are forecast to grow slower than the German market (8.8% per year).

High Growth Earnings: 1LFA's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1LFA's revenue (5.9% per year) is forecast to grow faster than the German market (5.4% per year).

High Growth Revenue: 1LFA's revenue (5.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1LFA's Return on Equity is forecast to be low in 3 years time (18.4%).

Past Performance

How has LexinFintech Holdings performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

37.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1LFA has high quality earnings.

Growing Profit Margin: 1LFA's current net profit margins (20.5%) are higher than last year (5.1%).

Past Earnings Growth Analysis

Earnings Trend: 1LFA has become profitable over the past 5 years, growing earnings by 37.4% per year.

Accelerating Growth: 1LFA's earnings growth over the past year (292.3%) exceeds its 5-year average (37.4% per year).

Earnings vs Industry: 1LFA earnings growth over the past year (292.3%) exceeded the Consumer Finance industry 15.4%.

Return on Equity

High ROE: 1LFA's Return on Equity (28.9%) is considered high.

Financial Health

How is LexinFintech Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1LFA's short term assets (CN¥16.7B) exceed its short term liabilities (CN¥10.2B).

Long Term Liabilities: 1LFA's short term assets (CN¥16.7B) exceed its long term liabilities (CN¥2.8B).

Debt to Equity History and Analysis

Debt Level: 1LFA's net debt to equity ratio (59.7%) is considered high.

Reducing Debt: 1LFA's debt to equity ratio has reduced from 61583.2% to 92.7% over the past 5 years.

Debt Coverage: 1LFA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1LFA's interest payments on its debt are well covered by EBIT (48.6x coverage).

Balance Sheet

Dividend

What is LexinFintech Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1LFA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1LFA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1LFA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1LFA's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1LFA has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure

CEO

Jay Xiao (38 yo)

8.67yrs

Tenure

Mr. Wenjie Xiao, also known as Jay, has been the Chief Executive Officer and Director of LexinFintech Holdings Ltd. since August 2013. Mr. Xiao has served as chairman of the board at LexinFintech Holdings...

Leadership Team

Experienced Management: 1LFA's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: 1LFA's board of directors are considered experienced (4.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/01 00:00
End of Day Share Price	2022/04/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31