Loading...

LexinFintech Holdings

Nasdaq:LX
Snowflake Description

Undervalued with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LX
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People’s Republic of China. The last earnings update was 7 days ago. More info.


Add to Portfolio Compare Print
  • LexinFintech Holdings has significant price volatility in the past 3 months.
LX Share Price and Events
7 Day Returns
3.9%
NasdaqGM:LX
1.5%
US Consumer Finance
1.2%
US Market
1 Year Returns
-26.6%
NasdaqGM:LX
0.4%
US Consumer Finance
3%
US Market
LX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LexinFintech Holdings (LX) 3.9% 7.4% 38.7% -26.6% - -
US Consumer Finance 1.5% 3% 18.8% 0.4% 52.3% 22.1%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • LX underperformed the Consumer Finance industry which returned 0.4% over the past year.
  • LX underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

LX Value

 Is LexinFintech Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LexinFintech Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LexinFintech Holdings.

NasdaqGM:LX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= CN¥40.01 * 43.1%
CN¥17.24
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. CN¥40.01
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:LX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.683 (1 + (1- 25%) (43.81%))
0.938
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.938 * 5.96%)
8.32%

Discounted Cash Flow Calculation for NasdaqGM:LX using Excess Returns Model Model

The calculations below outline how an intrinsic value for LexinFintech Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGM:LX Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (43.1% – 8.32%) * CN¥40.01)
CN¥13.92
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥13.92 / (8.32% - 2.73%)
CN¥248.91
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥40.01 + CN¥248.91
CN¥288.91
NasdaqGM:LX Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NasdaqGM:LX)
0.149
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥288.91 x 0.149
$43.16
Value per share (USD) From above. $43.16
Current discount Discount to share price of $10.79
= -1 x ($10.79 - $43.16) / $43.16
75%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LexinFintech Holdings is available for.
Intrinsic value
>50%
Share price is $10.79 vs Future cash flow value of $43.16
Current Discount Checks
For LexinFintech Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LexinFintech Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LexinFintech Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LexinFintech Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LexinFintech Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:LX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥11.70
NasdaqGM:LX Share Price ** NasdaqGM (2019-03-20) in USD $10.79
NasdaqGM:LX Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.695 CN¥72.23
United States of America Consumer Finance Industry PE Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 9.42x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LexinFintech Holdings.

NasdaqGM:LX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:LX Share Price ÷ EPS (both in CNY)

= 72.23 ÷ 11.70

6.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LexinFintech Holdings is good value based on earnings compared to the US Consumer Finance industry average.
  • LexinFintech Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does LexinFintech Holdings's expected growth come at a high price?
Raw Data
NasdaqGM:LX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
17.3%per year
United States of America Consumer Finance Industry PEG Ratio Median Figure of 24 Publicly-Listed Consumer Finance Companies 0.59x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGM:LX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.17x ÷ 17.3%

0.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LexinFintech Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on LexinFintech Holdings's assets?
Raw Data
NasdaqGM:LX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥23.55
NasdaqGM:LX Share Price * NasdaqGM (2019-03-20) in USD $10.79
NasdaqGM:LX Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.695 CN¥72.23
United States of America Consumer Finance Industry PB Ratio Median Figure of 41 Publicly-Listed Consumer Finance Companies 1.49x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGM:LX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:LX Share Price ÷ Book Value per Share (both in CNY)

= 72.23 ÷ 23.55

3.07x

* Primary Listing of LexinFintech Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LexinFintech Holdings is overvalued based on assets compared to the US Consumer Finance industry average.
X
Value checks
We assess LexinFintech Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. LexinFintech Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LX Future Performance

 How is LexinFintech Holdings expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LexinFintech Holdings expected to grow at an attractive rate?
  • LexinFintech Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • LexinFintech Holdings's earnings growth is expected to exceed the United States of America market average.
  • LexinFintech Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:LX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:LX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 17.3%
NasdaqGM:LX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 32.5%
United States of America Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 3.7%
United States of America Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 13.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:LX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:LX Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 3,908
2020-12-31 9,826 2,813 2,671 4
2019-12-31 8,481 2,281 2,425 2
NasdaqGM:LX Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 4,854 1,977
2018-09-30 3,708 948
2018-06-30 3,431 638
2018-03-31 3,239 167
2017-12-31 3,138 1,662 26
2017-09-30 3,112 1,395 -24
2017-06-30 2,996 980 -36
2017-03-31 2,966 -129
2016-12-31 2,965 380 -223

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LexinFintech Holdings's earnings are expected to grow by 17.3% yearly, however this is not considered high growth (20% yearly).
  • LexinFintech Holdings's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:LX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from LexinFintech Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:LX Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 21.70 21.70 21.70 1.00
2020-12-31 16.18 19.28 11.23 4.00
2019-12-31 13.30 15.72 11.40 4.00
NasdaqGM:LX Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 11.70
2018-09-30 6.74
2018-06-30 5.69
2018-03-31 1.98
2017-12-31 0.46
2017-09-30 -0.43
2017-06-30 -0.64
2017-03-31 -2.34
2016-12-31 -4.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LexinFintech Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess LexinFintech Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LexinFintech Holdings has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LX Past Performance

  How has LexinFintech Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LexinFintech Holdings's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if LexinFintech Holdings's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare LexinFintech Holdings's 1-year earnings growth to the 5-year average due to insufficient past data.
  • LexinFintech Holdings's earnings growth has exceeded the US Consumer Finance industry average in the past year (7506.8% vs 32.4%).
Earnings and Revenue History
LexinFintech Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LexinFintech Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:LX Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,854.25 1,977.31 869.84 320.17
2018-09-30 3,708.23 948.32 746.47 307.22
2018-06-30 3,431.37 637.63 699.05 280.69
2018-03-31 3,239.21 167.11 639.94 259.18
2017-12-31 3,138.43 25.99 609.14 235.29
2017-09-30 3,111.69 -23.90 590.45 213.81
2017-06-30 2,996.36 -35.55 542.82 182.24
2017-03-31 2,965.58 -129.49 490.49 148.38
2016-12-31 2,965.13 -222.92 463.68 127.32
2015-12-31 2,199.34 -361.72 284.43 40.44

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst LexinFintech Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • LexinFintech Holdings used its assets more efficiently than the US Consumer Finance industry average last year based on Return on Assets.
  • LexinFintech Holdings has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess LexinFintech Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LexinFintech Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LX Health

 How is LexinFintech Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LexinFintech Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LexinFintech Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LexinFintech Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of LexinFintech Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LexinFintech Holdings Company Filings, last reported 2 months ago.

NasdaqGM:LX Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,106.79 5,241.94 1,148.29
2018-09-30 2,816.40 7,172.36 440.91
2018-06-30 2,450.03 10,356.37 439.83
2018-03-31 1,927.13 13,443.19 613.44
2017-12-31 1,701.53 10,860.90 1,126.48
2017-09-30 210.74 11,041.06 504.70
2017-06-30 119.28 10,421.50 982.06
2017-03-31 12.60 7,759.48 479.61
2016-12-31 12.60 7,759.48 479.61
2015-12-31 192.68 3,190.23 135.37
  • LexinFintech Holdings's level of debt (127.6%) compared to net worth is high (greater than 40%).
  • Unable to establish if LexinFintech Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (31.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 423.1x coverage).
X
Financial health checks
We assess LexinFintech Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LexinFintech Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LX Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from LexinFintech Holdings dividends. Estimated to be 0.39% next year.
If you bought $2,000 of LexinFintech Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate LexinFintech Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate LexinFintech Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:LX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:LX Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.78 4.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as LexinFintech Holdings has not reported any payouts.
  • Unable to verify if LexinFintech Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of LexinFintech Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as LexinFintech Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of LexinFintech Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess LexinFintech Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LexinFintech Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LexinFintech Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LX Management

 What is the CEO of LexinFintech Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jay Xiao
AGE 35
TENURE AS CEO 5.6 years
CEO Bio

Mr. Jay Wenjie Xiao 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 Ltd. since December 2017. Mr. Xiao has over 10 years of experience in the online finance industry. Prior to that, Mr. Xiao served as Product Manager in the infrastructure platform department of Tenpay. Mr. Xiao received his bachelor's degree in design from Nanchang Hangkong University in 2005.

CEO Compensation
  • Insufficient data for Jay to compare compensation growth.
  • Insufficient data for Jay to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the LexinFintech Holdings management team in years:

2.9
Average Tenure
40
Average Age
  • The tenure for the LexinFintech Holdings management team is about average.
Management Team

Jay Xiao

TITLE
Chairman & CEO
AGE
35
TENURE
5.6 yrs

Jared Wu

TITLE
President & Director
AGE
39
TENURE
2.8 yrs

Craig Zeng

TITLE
CFO & Director
AGE
50
TENURE
2.3 yrs

Shirley Yang

TITLE
Chief Human Resources Officer
TENURE
0.1 yrs

Kris Qiao

TITLE
Chief Financing Cooperation Officer
AGE
40
TENURE
2.9 yrs

Ryan Liu

TITLE
Chief Risk Officer
AGE
40
TENURE
3.9 yrs

Tony Hung

TITLE
Investor Contact
Board of Directors Tenure

Average tenure and age of the LexinFintech Holdings board of directors in years:

1.3
Average Tenure
43
Average Age
  • The average tenure for the LexinFintech Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jay Xiao

TITLE
Chairman & CEO
AGE
35
TENURE
1.3 yrs

Jared Wu

TITLE
President & Director
AGE
39
TENURE
1.3 yrs

Craig Zeng

TITLE
CFO & Director
AGE
50
TENURE
1.3 yrs

Wei Wu

TITLE
Director
AGE
53
TENURE
1.3 yrs

Free Wu

TITLE
Independent Director
AGE
42
TENURE
1 yrs

Keyi Chen

TITLE
Director
AGE
40
TENURE
4.7 yrs

Bo Shao

TITLE
Director
AGE
45
TENURE
4.7 yrs

Neng Wang

TITLE
Independent Director
AGE
44
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess LexinFintech Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LexinFintech Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LX News

Simply Wall St News

A Look At LexinFintech Holdings Ltd.'s (NASDAQ:LX) Exceptional Fundamentals

(NASDAQ:LX) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of LX, it

Simply Wall St -

Brief Commentary On LexinFintech Holdings Ltd's (NASDAQ:LX) Fundamentals

I've been keeping an eye on LexinFintech Holdings Ltd (NASDAQ:LX) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe LX has a lot to offer. … company with a

Simply Wall St -

Who Owns LexinFintech Holdings Ltd (NASDAQ:LX)?

Every investor in LexinFintech Holdings Ltd (NASDAQ:LX) should be aware of the most powerful shareholder groups. … LexinFintech Holdings has a market capitalization of US$1.5b, so we would expect some institutional investors to have noticed the stock. … Check out our latest analysis for LexinFintech Holdings

Simply Wall St -

These Factors Make LexinFintech Holdings Ltd (NASDAQ:LX) A Great Investment

Attractive stocks have exceptional fundamentals. … In the case of LexinFintech Holdings Ltd (NASDAQ:LX), there's. … reflected in the share price

Simply Wall St -

Is It Time To Sell LexinFintech Holdings Ltd (NASDAQ:LX) Based Off Its PE Ratio?

and want to begin learning the link between LexinFintech Holdings Ltd (NASDAQ:LX)’s fundamentals and stock market performance. … LexinFintech Holdings Ltd (NASDAQ:LX) trades with a trailing P/E of 40.8x, which is higher than the industry average of 14.6x. … While this makes LX appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

What Are Analysts Saying About LexinFintech Holdings Ltd's (NASDAQ:LX) Earnings Trend?

Investors may find it useful to understand how market analysts view LexinFintech Holdings's earnings growth trajectory over the next couple of years and whether the future looks brighter. … See our latest analysis for LexinFintech Holdings Analysts' expectations for next year seems buoyant, with earnings growth more than doubling. … This means that, we can expect LexinFintech Holdings will grow its earnings by 62.18% every year for the next couple of years.

Simply Wall St -

If You Bought LexinFintech Holdings Ltd (NASDAQ:LX) Today, There May Be An Upside

Looking at factors such as book values, along with the return and cost of equity, is practical for calculating LX’s intrinsic value. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (-114.9% – 10.17%) * CN¥-8.39 = CN¥10.49 Excess Return Per Share is used to calculate the terminal value of LX, which is how much the business is expected to continue to generate over the upcoming years, in perpetuity. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = CN¥10.49 / (10.17% – 2.47%) = CN¥136.15 These factors are combined to calculate the true value of LX's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = CN¥-8.39 + CN¥136.15 = $20.18 Relative to today's price of CN¥18.25, LX is , at this time, fairly priced by the market.

Simply Wall St -

Did LexinFintech Holdings Ltd's (NASDAQ:LX) Recent Earnings Growth Beat The Trend?

When LexinFintech Holdings Ltd (NASDAQ:LX) released its most recent earnings update (30 September 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … For LexinFintech Holdings, its most recent earnings is -CN¥23.9M, which compared to last year’s level, has become less negative. … Though LexinFintech Holdings's past data is helpful, it is only one aspect of my investment thesis.

Simply Wall St -

LX Company Info

Description

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People’s Republic of China. The company operates Fenqile, an online consumer finance platform that offers personal installment loans, installment purchase loans, and other loan products, as well as Le Card credit line. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, institutional funding partners in its direct lending programs, and investors of its asset-backed securities. 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 founded in 2013 and is headquartered in Shenzhen, the People’s Republic of China.

Details
Name: LexinFintech Holdings Ltd.
LX
Exchange: NasdaqGM
Founded: 2013
$1,787,461,354
165,659,069
Website: http://www.fenqile.com
Address: LexinFintech Holdings Ltd.
CES Tower,
27th Floor,
Shenzhen,
Guangdong Province, 518052,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM LX ADR Nasdaq Global Market US USD 21. Dec 2017
Number of employees
Current staff
Staff numbers
2,518
LexinFintech Holdings employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 01:11
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/03/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.