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

Outstanding track record and undervalued.

Risks

  • LexinFintech Holdings has significant price volatility in the past 3 months.

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

3.6%

NasdaqGM:LX

-1.5%

US Consumer Finance

0.2%

US Market


1 Year Return

-7.3%

NasdaqGM:LX

1.7%

US Consumer Finance

-0.7%

US Market

LX underperformed the Consumer Finance industry which returned 4.3% over the past year.

LX underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

LXIndustryMarket
7 Day3.6%-1.5%0.2%
30 Day-5.7%-3.8%-2.7%
90 Day-14.3%-1.0%1.6%
1 Year-7.3%-7.3%3.3%1.7%1.6%-0.7%
3 Yearn/a59.8%52.4%40.0%30.9%
5 Yearn/a38.0%28.2%53.8%36.8%

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

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 Based on Earnings

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

LexinFintech Holdings is good value based on expected growth next year.


Price Based on Value of Assets

LexinFintech Holdings is overvalued based on assets compared to the US Consumer Finance industry average.


Next Steps

Future Growth

How is LexinFintech Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

LexinFintech Holdings's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).

LexinFintech Holdings's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).

LexinFintech Holdings's revenue growth is expected to exceed the United States of America market average.

LexinFintech Holdings's earnings growth is positive but not above the United States of America market average.

LexinFintech Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

LexinFintech Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has LexinFintech Holdings performed over the past 5 years?

127.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

LexinFintech Holdings has delivered over 20% year on year earnings growth in the past 5 years.

LexinFintech Holdings's 1-year earnings growth exceeds its 5-year average (1099.9% vs 127.9%)

LexinFintech Holdings's earnings growth has exceeded the US Consumer Finance industry average in the past year (1099.9% vs 37.7%).


Return on Equity

LexinFintech Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

LexinFintech Holdings used its assets more efficiently than the US Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

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).


Next Steps

Financial Health

How is LexinFintech Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

LexinFintech Holdings's level of debt (88.9%) 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 (66.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 681.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Jay Xiao (36yo)

6.0yrs

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

3.3yrs

Average Tenure

41yo

Average Age

The tenure for the LexinFintech Holdings management team is about average.


Board Age and Tenure

1.7yrs

Average Tenure

42yo

Average Age

The average tenure for the LexinFintech Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Craig Zeng (51yo)

    CFO & Director

    • Tenure: 1.7yrs
  • Jay Xiao (36yo)

    Chairman & CEO

    • Tenure: 6.0yrs
  • Jared Wu (40yo)

    President & Director

    • Tenure: 1.8yrs
  • Kris Qiao (41yo)

    Chief Financing Cooperation Officer

    • Tenure: 3.3yrs
  • Ryan Liu (41yo)

    Chief Risk Officer

    • Tenure: 4.3yrs
  • Tony Hung

    Investor Contact

    • Tenure: 0.0yrs
  • Shirley Yang (48yo)

    Chief Human Resources Officer

    • Tenure: 0.5yrs

Board Members

  • Free Wu (43yo)

    Independent Director

    • Tenure: 1.4yrs
  • Min Xiao (40yo)

    Director

    • Tenure: 0.3yrs
  • Keyi Chen (41yo)

    Director

    • Tenure: 5.1yrs
  • Craig Zeng (51yo)

    CFO & Director

    • Tenure: 1.7yrs
  • Neng Wang (45yo)

    Independent Director

    • Tenure: 1.4yrs
  • Jay Xiao (36yo)

    Chairman & CEO

    • Tenure: 6.0yrs
  • Jared Wu (40yo)

    President & Director

    • Tenure: 1.8yrs
  • Wei Wu (54yo)

    Independent Director

    • Tenure: 1.7yrs

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$1.831b
  • Shares outstanding: 177.12m
  • 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)YesADRUSUSDDec 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 Analysis2019/08/21 00:39
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
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.