LexinFintech Holdings (NasdaqGS:LX) - Share price, News & Analysis

LX fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	1/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

LX Stock Overview

LexinFintech Holdings Ltd., through its subsidiaries, offers online consumer finance services in the People’s Republic of China.

Rewards

Trading at 87.4% 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

Has a high level of debt

Volatile share price over the past 3 months

LexinFintech Holdings Competitors

360 DigiTech

NasdaqGS:QFIN

US$2.1b

Pintec Technology Holdings

NasdaqGM:PT

US$13.9m

JD.com

NasdaqGS:JD

US$78.2b

Suning.com

SZSE:002024

CN¥22.4b

Price History & Performance

Summary of all time highs, changes and price drops for LexinFintech Holdings
Historical stock prices
Current Share Price	US$2.42
52 Week High	US$13.62
52 Week Low	US$1.90
Beta	0.72
1 Month Change	-6.56%
3 Month Change	-34.06%
1 Year Change	-73.02%
3 Year Change	-79.93%
5 Year Change	n/a
Change since IPO	-77.38%

Recent News & Updates

Nov 29

LexinFintech: New Regulatory Developments Draw Attention

LX's bottom line grew strongly in Q3 2021, but its operating revenue declined as a result of lower loan pricing which is required to comply with new regulatory guidelines. The regulators have provided more clarity on the credit reporting requirements and the allowable interest rate cap for online consumer firms, which I view as a key positive for LX. I upgrade LexinFintech's investment rating to a Buy, on the basis of its undemanding valuations and reduced regulatory risks.

Shareholder Returns

	LX	US Consumer Finance	US Market
7D	10.0%	2.7%	0.1%
1Y	-73.0%	-21.1%	-12.7%

Return vs Industry: LX underperformed the US Consumer Finance industry which returned -20.1% over the past year.

Return vs Market: LX underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is LX's price volatile compared to industry and market?
LX volatility
LX Average Weekly Movement	15.2%
Consumer Finance Industry Average Movement	9.0%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: LX is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: LX's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2013	3,896	Jay Xiao	https://www.lexin.com

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.

LexinFintech Holdings Fundamentals Summary

How do LexinFintech Holdings's earnings and revenue compare to its market cap?
LX fundamental statistics
Market Cap	CN¥2.87b
Earnings (TTM)	CN¥2.33b
Revenue (TTM)	CN¥11.38b

1.3x

P/E Ratio

0.3x

P/S Ratio

Is LX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LX 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)	12.66
Gross Margin	55.19%
Net Profit Margin	20.51%
Debt/Equity Ratio	92.7%

How did LX 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: LX ($2.42) is trading below our estimate of fair value ($19.15)

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

Price To Earnings Ratio

PE vs Industry: LX is good value based on its PE Ratio (1.3x) compared to the US Consumer Finance industry average (6.3x).

PE vs Market: LX is good value based on its PE Ratio (1.3x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: LX is good value based on its PB Ratio (0.4x) compared to the US Consumer Finance industry average (1.1x).

Future Growth

How is LexinFintech Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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: LX's forecast earnings growth (3% per year) is above the savings rate (1.9%).

Earnings vs Market: LX's earnings (3% per year) are forecast to grow slower than the US market (12.4% per year).

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

Revenue vs Market: LX's revenue (6.1% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: LX's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LX'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: LX has high quality earnings.

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

Past Earnings Growth Analysis

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

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

Earnings vs Industry: LX earnings growth over the past year (292.3%) exceeded the Consumer Finance industry 29%.

Return on Equity

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

Financial Health

How is LexinFintech Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

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

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

Debt to Equity History and Analysis

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

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

Debt Coverage: LX's debt is well covered by operating cash flow (35.7%).

Interest Coverage: LX'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 LX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if LX'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 LX has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

Jay Xiao (38 yo)

8.75yrs

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: LX's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: LX's board of directors are considered experienced (4.2 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	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31