NasdaqGM:LX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.5%

LX

1.9%

US Consumer Finance

1.0%

US Market


1 Year Return

1.4%

LX

5.7%

US Consumer Finance

6.7%

US Market

Return vs Industry: LX underperformed the US Consumer Finance industry which returned 5.7% over the past year.

Return vs Market: LX underperformed the US Market which returned 6.7% over the past year.


Share holder returns

LXIndustryMarket
7 Day10.5%1.9%1.0%
30 Day-16.5%-5.3%-1.8%
90 Day-17.4%-7.6%-1.8%
1 Year1.4%1.4%7.5%5.7%9.1%6.7%
3 Yearn/a61.3%53.5%46.1%36.6%
5 Yearn/a42.1%31.7%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: LX ($9.55) is trading below our estimate of fair value ($49.2)

Significantly Undervalued: LX is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: LX is good value based on its PE Ratio (5.4x) compared to the Consumer Finance industry average (8x).

PE vs Market: LX is good value based on its PE Ratio (5.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: LX is good value based on its PEG Ratio (0.3x)


Price Based on Value of Assets

PB vs Industry: LX is overvalued based on its PB Ratio (2.3x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is LexinFintech Holdings expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: LX's forecast earnings growth (16.7% per year) is above the savings rate (2.7%).

Earnings vs Market: LX's earnings (16.7% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: LX's revenue (13.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: LX's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: LX's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

How has LexinFintech Holdings performed over the past 5 years?

113.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LX's earnings have grown significantly by 113.2% per year over the past 5 years.

Accelerating Growth: LX's earnings growth over the past year (243.1%) exceeds its 5-year average (113.2% per year).

Earnings vs Industry: LX earnings growth over the past year (243.1%) exceeded the Consumer Finance industry 25.5%.


Return on Equity

High ROE: LX's Return on Equity (41.7%) is considered outstanding.


Return on Assets

ROA vs Industry: LX has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: LX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LexinFintech Holdings'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: LX has a low level of unsold assets or inventory.

Debt Coverage by Assets: LX's debt is covered by short term assets (assets are 2.512670x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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.


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 LX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Jay Xiao (36yo)

6.2yrs

Tenure

0

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  ...


Management Age and Tenure

3.5yrs

Average Tenure

41yo

Average Age

Experienced Management: LX's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

42yo

Average Age

Experienced Board: LX's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Craig Zeng (51yo)

    CFO & Director

    • Tenure: 1.8yrs
  • Jay Xiao (36yo)

    Chairman & CEO

    • Tenure: 6.2yrs
  • Jared Wu (40yo)

    President & Director

    • Tenure: 1.9yrs
  • Kris Qiao (41yo)

    Chief Financing Cooperation Officer

    • Tenure: 3.5yrs
  • Ryan Liu (41yo)

    Chief Risk Officer

    • Tenure: 4.5yrs
  • Tony Hung

    Investor Contact

    • Tenure: 0yrs
  • Shirley Yang (48yo)

    Chief Human Resources Officer

    • Tenure: 0.7yrs

Board Members

  • Free Wu (43yo)

    Independent Director

    • Tenure: 1.6yrs
  • Min Xiao (40yo)

    Director

    • Tenure: 0.4yrs
  • Keyi Chen (41yo)

    Director

    • Tenure: 5.3yrs
  • Craig Zeng (51yo)

    CFO & Director

    • Tenure: 1.8yrs
  • Neng Wang (45yo)

    Independent Director

    • Tenure: 1.6yrs
  • Jay Xiao (36yo)

    Chairman & CEO

    • Tenure: 6.2yrs
  • Jared Wu (40yo)

    President & Director

    • Tenure: 1.9yrs
  • Wei Wu (54yo)

    Independent Director

    • Tenure: 1.8yrs

Company Information

LexinFintech Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LexinFintech Holdings Ltd.
  • Ticker: LX
  • Exchange: NasdaqGM
  • Founded: 2013
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$1.707b
  • Shares outstanding: 178.72m
  • Website: https://ir.lexinfintech.com

Number of Employees


Location

  • LexinFintech Holdings Ltd.
  • CES Tower
  • 27th Floor
  • Shenzhen
  • Guangdong Province
  • 518052
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LXNasdaqGM (Nasdaq Global Market)YesEACH ADS REP 2 ORD SHS CLASS AUSUSDDec 2017
1LFADB (Deutsche Boerse AG)YesEACH ADS REP 2 ORD SHS CLASS ADEEURDec 2017

Biography

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.com, a retail and onli ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:31
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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