company background image
LPRO

Open LendingNasdaqGM:LPRO Stock Report

Market Cap

US$4.2b

7D

-5.1%

1Y

22.4%

Updated

24 Oct, 2021

Data

Company Financials +
LPRO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth6/6
Past Performance2/6
Financial Health3/6
Dividends0/6

LPRO Overview

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, and captive finance companies of original equipment manufacturers in the United States.

Open Lending Competitors

Square

NYSE:SQ

US$116.9b

SoFi Technologies

NasdaqGS:SOFI

US$16.4b

Credit Acceptance

NasdaqGS:CACC

US$10.0b

LendingClub

NYSE:LC

US$3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Open Lending
Historical stock prices
Current Share PriceUS$33.24
52 Week HighUS$24.67
52 Week LowUS$44.00
Beta0
1 Month Change-13.51%
3 Month Change-9.60%
1 Year Change22.43%
3 Year Changen/a
5 Year Changen/a
Change since IPO157.67%

Recent News & Updates

Aug 13
Open Lending Corporation Just Beat EPS By 245%: Here's What Analysts Think Will Happen Next

Open Lending Corporation Just Beat EPS By 245%: Here's What Analysts Think Will Happen Next

A week ago, Open Lending Corporation ( NASDAQ:LPRO ) came out with a strong set of quarterly numbers that could...

Shareholder Returns

LPROUS Capital MarketsUS Market
7D-5.1%3.5%1.7%
1Y22.4%64.0%30.3%

Return vs Industry: LPRO underperformed the US Capital Markets industry which returned 64% over the past year.

Return vs Market: LPRO underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is LPRO's price volatile compared to industry and market?
LPRO volatility
LPRO Beta0
Industry Beta1.19
Market Beta1

Stable Share Price: LPRO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LPRO's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000104John Flynnhttps://www.openlending.com

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, and captive finance companies of original equipment manufacturers in the United States. It offers Lenders Protection Program (LPP), which is a Software as a Service platform that facilitates loan decision making and automated underwriting by third-party lenders and the issuance of credit default insurance through third-party insurance providers. The company’s LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders.

Open Lending Fundamentals Summary

How do Open Lending's earnings and revenue compare to its market cap?
LPRO fundamental statistics
Market CapUS$4.19b
Earnings (TTM)US$32.90m
Revenue (TTM)US$174.53m

127.5x

P/E Ratio

24.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LPRO income statement (TTM)
RevenueUS$174.53m
Cost of RevenueUS$12.97m
Gross ProfitUS$161.56m
ExpensesUS$128.67m
EarningsUS$32.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin92.57%
Net Profit Margin18.85%
Debt/Equity Ratio152.1%

How did LPRO perform over the long term?

See historical performance and comparison

Valuation

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

127.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LPRO ($33.24) is trading above our estimate of fair value ($1.47)

Significantly Below Fair Value: LPRO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LPRO is poor value based on its PE Ratio (127.5x) compared to the US Capital Markets industry average (16.5x).

PE vs Market: LPRO is poor value based on its PE Ratio (127.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LPRO is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: LPRO is good value based on its PB Ratio (43.2x) compared to the US Capital Markets industry average (61.3x).


Future Growth

How is Open Lending forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPRO's forecast earnings growth (20.5% per year) is above the savings rate (2%).

Earnings vs Market: LPRO's earnings (20.5% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LPRO's revenue (25.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: LPRO's revenue (25.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LPRO's Return on Equity is forecast to be very high in 3 years time (58.9%).


Past Performance

How has Open Lending performed over the past 5 years?

-13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPRO has a large one-off loss of $34.3M impacting its June 30 2021 financial results.

Growing Profit Margin: LPRO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LPRO has become profitable over the past 5 years, growing earnings by -13.6% per year.

Accelerating Growth: LPRO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LPRO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (77.6%).


Return on Equity

High ROE: Whilst LPRO's Return on Equity (33.89%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Open Lending's financial position?


Financial Position Analysis

Short Term Liabilities: LPRO's short term assets ($133.8M) exceed its short term liabilities ($14.6M).

Long Term Liabilities: LPRO's short term assets ($133.8M) do not cover its long term liabilities ($149.4M).


Debt to Equity History and Analysis

Debt Level: LPRO's debt to equity ratio (152.1%) is considered high.

Reducing Debt: Insufficient data to determine if LPRO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LPRO's debt is well covered by operating cash flow (30.9%).

Interest Coverage: LPRO's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Dividend

What is Open Lending current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LPRO'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 LPRO's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LPRO'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?

1.6yrs

Average management tenure


CEO

John Flynn (65 yo)

21.5yrs

Tenure

US$4,398,024

Compensation

Mr. John Joseph Flynn serves as the Chief Executive Officer of Open Lending Corporation since April 2000 and served as its President since April 2000 until August 28, 2020. He served as Member of its Board...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.40M) is about average for companies of similar size in the US market ($USD5.18M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LPRO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: LPRO's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.1%.


Top Shareholders

Company Information

Open Lending Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Open Lending Corporation
  • Ticker: LPRO
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$4.195b
  • Shares outstanding: 126.19m
  • Website: https://www.openlending.com

Number of Employees


Location

  • Open Lending Corporation
  • 1501 South Mopac Expressway
  • Suite 450
  • Austin
  • Texas
  • 78746
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:17
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.