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 Analysis

Good value with reasonable growth potential.


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

Stable Share Price: LX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

LX

-19.6%

US Consumer Finance

-3.8%

US Market


1 Year Return

-40.5%

LX

-46.9%

US Consumer Finance

-15.9%

US Market

Return vs Industry: LX exceeded the US Consumer Finance industry which returned -46.9% over the past year.

Return vs Market: LX underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

LXIndustryMarket
7 Day-0.8%-19.6%-3.8%
30 Day-18.3%-41.1%-17.4%
90 Day-43.2%-49.7%-24.1%
1 Year-40.5%-40.5%-46.0%-46.9%-14.1%-15.9%
3 Yearn/a-28.3%-31.9%10.0%2.8%
5 Yearn/a-29.3%-34.6%27.6%13.5%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LX ($8.5) is trading below our estimate of fair value ($41.5)

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


Price To Earnings Ratio

PE vs Industry: LX is poor value based on its PE Ratio (4.7x) compared to the Consumer Finance industry average (3.8x).

PE vs Market: LX is good value based on its PE Ratio (4.7x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LX is overvalued based on its PB Ratio (1.6x) compared to the US Consumer Finance industry average (0.6x).


Next Steps

Future Growth

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

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LX's forecast earnings growth (16.8% per year) is above the savings rate (1.7%).

Earnings vs Market: LX's earnings (16.8% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: LX's revenue (17.2% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: LX's revenue (17.2% 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 high in 3 years time (26.1%)


Next Steps

Past Performance

How has LexinFintech Holdings performed over the past 5 years?

88.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LX has high quality earnings.

Growing Profit Margin: LX's current net profit margins (24.3%) are lower than last year (40.7%).


Past Earnings Growth Analysis

Earnings Trend: LX's earnings have grown significantly by 88.5% per year over the past 5 years.

Accelerating Growth: LX's earnings growth over the past year (16%) is below its 5-year average (88.5% per year).

Earnings vs Industry: LX earnings growth over the past year (16%) exceeded the Consumer Finance industry 10%.


Return on Equity

High ROE: Whilst LX's Return on Equity (34.77%) is high, this metric is skewed due to their high level of debt.


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 2x 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

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.


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.


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

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

3.9yrs

Average management tenure


CEO

Jay Xiao (36yo)

6.67s

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

NamePositionTenureCompensationOwnership
Wenjie Xiao
Chairman & CEO6.67yrsno data28.26% CN¥429.2m
Yi Wu
President & Director2.42yrsno datano data
Yan Zeng
CFO & Director2.33yrsno datano data
Ming Zhao
Chief Marketing Officer0.17yrno datano data
Yunwen Yang
Chief Human Resources Officer1.17yrsno datano data
Qian Qiao
Chief Financing Cooperation Officer4yrsno datano data
Huanian Liu
Chief Risk Officer5yrsno datano data
Tony Hung
Investor Contactno datano datano data

3.9yrs

Average Tenure

41yo

Average Age

Experienced Management: LX's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wenjie Xiao
Chairman & CEO6.67yrsno data28.26% CN¥429.2m
Yi Wu
President & Director2.42yrsno datano data
Yan Zeng
CFO & Director2.33yrsno datano data
Suining Xiao
Director0.58yrno datano data
Xiaoguang Wu
Independent Director2.08yrsno datano data
Min Xiao
Independent Director0.92yrno datano data
Keyi Chen
Director5.75yrsno datano data
Neng Wang
Independent Director2.08yrsno datano data
Wei Wu
Independent Director2.33yrsno datano data

2.3yrs

Average Tenure

43yo

Average Age

Experienced Board: LX's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Top Shareholders

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$1.519b
  • 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 online consumer finance platform that offers installment purchase loans, personal installment loans, and other loan products, as well as provides online direct sales with installment payment terms. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, third-party commercial banks, consumer finance companies, institutional funding partners in its direct lending programs, investors of its asset-backed securities, and other licensed financial institutions. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 04:55
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.