NasdaqGM:HX

Stock Analysis Report

Executive Summary

Hexindai Inc. operates a consumer lending marketplace that facilitates loans in China.


Snowflake Analysis

Fair value with worrying balance sheet.


Similar Companies

Share Price & News

How has Hexindai's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

HX

-19.7%

US Consumer Finance

-2.8%

US Market


1 Year Return

-89.6%

HX

-46.9%

US Consumer Finance

-15.9%

US Market

Return vs Industry: HX underperformed the US Consumer Finance industry which returned -46.9% over the past year.

Return vs Market: HX underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

HXIndustryMarket
7 Day4.3%-19.7%-2.8%
30 Day-8.1%-43.6%-18.8%
90 Day-54.8%-50.2%-24.0%
1 Year-89.6%-89.6%-45.9%-46.9%-14.2%-15.9%
3 Yearn/a-28.5%-32.0%9.9%2.8%
5 Yearn/a-29.4%-34.6%27.2%13.3%

Price Volatility Vs. Market

How volatile is Hexindai's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HX ($0.38) is trading below our estimate of fair value ($4.45)

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


Price To Earnings Ratio

PE vs Industry: HX is unprofitable, so we can't compare its PE Ratio to the Consumer Finance industry average.

PE vs Market: HX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HX is good value based on its PB Ratio (0.2x) compared to the US Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Hexindai forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.8%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hexindai has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hexindai performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HX is currently unprofitable.

Growing Profit Margin: HX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HX is unprofitable, but has reduced losses over the past 5 years at a rate of 24.9% per year.

Accelerating Growth: Unable to compare HX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HX is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (10%).


Return on Equity

High ROE: HX has a negative Return on Equity (-27.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hexindai's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HX has a low level of unsold assets or inventory.

Debt Coverage by Assets: HX's debt is covered by short term assets (assets are 2.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if HX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

Asset Level: HX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HX has a sufficient allowance for bad loans.

Low Risk Liabilities: HX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HX has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: HX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Xiaobo An (37yo)

0.92

Tenure

Mr. Xiaobo An is Hexindai Inc.’s (“Hexindai”) Founder and has served as its Chairman of the Board of Directors since Hexindai’s inception and a Director since February 2017 and serves as its Chief Executiv ...


Leadership Team

NamePositionTenureCompensationOwnership
Xiaobo An
Founder0.92yrno data73.02% $13.5m
Rui Zhang
Chief Financial Officer0.67yrno datano data
Wei Luping
VP of Operations & Director0.25yrno datano data
Daisy Wang
Investor Relation Contactno datano datano data
Chen Zhang
Chief Marketing Officer0.92yrno datano data
Weixiong Huang
Chief Risk Officer0.92yrno datano data
Ma Xiaoqin
Corporate Secretaryno datano datano data

0.9yrs

Average Tenure

37yo

Average Age

Experienced Management: HX's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiaobo An
Founder0.92yrno data73.02% $13.5m
Wei Luping
VP of Operations & Director0.25yrno datano data
Wei Tang
Independent Non-Executive Director2.5yrsno datano data
Stephen Markscheid
Independent Non-Executive Director2.5yrsno datano data
Dagang Guo
Independent Non-Executive Director2.5yrsno datano data

2.5yrs

Average Tenure

49.5yo

Average Age

Experienced Board: HX's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

Hexindai Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hexindai Inc.
  • Ticker: HX
  • Exchange: NasdaqGM
  • Founded: 2013
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$18.479m
  • Shares outstanding: 48.68m
  • Website: https://www.hexindai.com

Number of Employees


Location

  • Hexindai Inc.
  • Block C, Shimao
  • 13th Floor
  • Beijing
  • 100020
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HXNasdaqGM (Nasdaq Global Market)YesADRUSUSDNov 2017

Biography

Hexindai Inc. operates a consumer lending marketplace that facilitates loans in China. It primarily focuses on facilitating medium-sized credit loans. The company provides borrowers a range of products based on customer segmentation data and tailored to the specific needs of the emerging middle class; and investors various types of investment products. The company was founded in 2013 and is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 08:35
End of Day Share Price2020/04/03 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.