SOFI

SoFi TechnologiesNasdaqGS:SOFI Stock Report

Market Cap

US$12.0b

7D

-1.3%

1Y

n/a

Updated

19 Sep, 2021

Data

Company Financials +
SOFI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends0/6

SOFI Overview

Social Finance, Inc., a finance company, operates an online platform that provides financial services.

SoFi Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SoFi Technologies
Historical stock prices
Current Share PriceUS$15.09
52 Week HighUS$13.56
52 Week LowUS$24.95
Beta0
1 Month Change7.48%
3 Month Change-32.96%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-33.38%

Recent News & Updates

Sep 18

SoFi: Jack Of All Trades, Master Of None?

Recently there has been a flood of new bullish commentary on SoFi claiming that it is the next fintech juggernaut in the making. However, the US government's recent extension of the student loan payment freeze through January 2022 will likely slow down SoFi's expansion efforts. SoFi has yet to achieve scale in its various business segments and competition is rapidly intensifying. The company's decision to go public via a SPAC IPO raises questions about the accuracy of its long-term revenue projections. Continue to wait for a better entry.

Sep 12
SoFi Technologies, Inc. (NASDAQ:SOFI) Looks Cheap Thanks to Market's Overreaction

SoFi Technologies, Inc. (NASDAQ:SOFI) Looks Cheap Thanks to Market's Overreaction

After going through a combination of lockup expiry and uneventful earnings in August, SoFi Technologies, Inc. (NASDAQ: SOFI) held the line at US$14 level. While it is still struggling to break above US$16, we can probably agree that it is doing better than expected. Yet, in the face of the latest downgrade, we will examine our take on the intrinsic value through the discounted cash flow (DCF) method.

Sep 07

Is SoFi Stock A Buy Or Sell After Its Recent Dip?

SoFi has traded down by about 35% since it completed its reverse SPAC merger IPO in early June. The downward price pressures come as a result of the stock’s lock-up expiration, and management’s soft revenue outlook due to lower student loan refinancing volumes until 2022. However, the recent volatility is expected to be transitory, with significant upside realization to resume in the near-term ahead of material catalysts on which SoFi’s long-term growth is built on. The anticipated approval of a national bank charter for SoFi is expected to materialize within the next 12 months, which will materially transform the company's overall growth prospects. Combined with its cost-efficient multi-product business model and ongoing digital transformation tailwinds for the industry, SoFi is well-positioned for upside realization of as much as 38% in the near-term.

Aug 27

SoFi Vs. Robinhood Stock: Which Is The Better Buy?

The advent of mobile internet and technological innovations have accelerated the transition to digital in most aspects of the daily routine, including personal banking and investing. COVID-related disruptions experienced in the last 18-months have also led many customers to realize that digital banking channels are a reliable alternative to megabanks and their branches. The growing demand for convenient and easy-to-use online personal banking, investing and payment solution platforms have also created a strong foundation for high-growth opportunities within the fintech scene. SoFi and Robinhood are two virtual banking and investing platforms that have gained prominence over the past year with rising demand for convenient and reliable contactless banking and investing solutions. Both platforms are well-positioned to capitalize on the significant growth opportunities within the emerging sector, making them great long-term investments for those looking to participate in returns generated from the global transition to digital ahead.

Aug 25
SoFi Technologies, Inc. (NASDAQ:SOFI) has High but Risky Growth from Personal Loans and Investment Accounts

SoFi Technologies, Inc. (NASDAQ:SOFI) has High but Risky Growth from Personal Loans and Investment Accounts

SoFi Technologies, Inc. (NASDAQ:SOFI) stock received a lot of attention from a substantial price movement over the last few months, increasing to US$23.89 at one point, and dropping to the lows of US$13.75. The price seems to be highly volatile, and we are going to examine what can be behind these movements.

Aug 17

SoFi Technologies: Why The Market Got It All Wrong

SoFi just reported strong Q2 2021 financial results with accelerating growth across its usage metrics, most of which grew by >100%. Adjusted revenue for the quarter climbed 74% YoY and was based on a diverse revenue mix from SoFi’s three core business segments. However, investors got spooked by a net loss of >$150 million for the quarter and a muted guidance for H2 2021. Management made it clear that net loss was impacted by a deferred tax liability from Galileo, while guidance was reiterated despite a $40M headwind from the CARES Act prolongation. SoFi is diversifying its business and makes significant progress in terms of multi-product adoption, which will be key for future growth. The 15% drop in shares is a clear overreaction.

Shareholder Returns

SOFIUS Consumer FinanceUS Market
7D-1.3%2.1%-0.6%
1Yn/a75.0%33.8%

Return vs Industry: Insufficient data to determine how SOFI performed against the US Consumer Finance industry.

Return vs Market: Insufficient data to determine how SOFI performed against the US Market.

Price Volatility

Is SOFI's price volatile compared to industry and market?
SOFI volatility
SOFI Beta0
Industry Beta1.5
Market Beta1

Stable Share Price: SOFI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: Insufficient data to determine SOFI's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
20111,977Anthony Notohttps://www.sofi.com

Social Finance, Inc., a finance company, operates an online platform that provides financial services. It offers student loan refinancing, private student loans, personal loans, auto loan refinance, home loans, mortgage loans, and investments, as well as insurance products for renters, homeowners, automobiles, and others. The company also offers SoFi Weekly Dividend ETF, an equity ETF to provide a weekly dividend payment to shareholders.

SoFi Technologies Fundamentals Summary

How do SoFi Technologies's earnings and revenue compare to its market cap?
SOFI fundamental statistics
Market CapUS$11.99b
Earnings (TTM)-US$561.46m
Revenue (TTM)US$799.05m

15.0x

P/S Ratio

-21.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOFI income statement (TTM)
RevenueUS$799.05m
Cost of RevenueUS$223.03m
Gross ProfitUS$576.03m
ExpensesUS$1.14b
Earnings-US$561.46m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-4.40
Gross Margin72.09%
Net Profit Margin-70.27%
Debt/Equity Ratio53.7%

How did SOFI perform over the long term?

See historical performance and comparison

Valuation

Is SoFi Technologies 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: SOFI ($15.09) is trading below our estimate of fair value ($71.59)

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


Price To Earnings Ratio

PE vs Industry: SOFI is unprofitable, so we can't compare its PE Ratio to the US Consumer Finance industry average.

PE vs Market: SOFI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SOFI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOFI is overvalued based on its PB Ratio (2.9x) compared to the US Consumer Finance industry average (1.6x).


Future Growth

How is SoFi Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

69.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOFI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SOFI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SOFI's is expected to become profitable in the next 3 years.

Revenue vs Market: SOFI's revenue (31.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SOFI's revenue (31.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOFI's Return on Equity is forecast to be low in 3 years time (2.8%).


Past Performance

How has SoFi Technologies performed over the past 5 years?

-42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOFI is currently unprofitable.

Growing Profit Margin: SOFI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOFI is unprofitable, and losses have increased over the past 5 years at a rate of 42.5% per year.

Accelerating Growth: Unable to compare SOFI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SOFI is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (126.5%).


Return on Equity

High ROE: SOFI has a negative Return on Equity (-10.34%), as it is currently unprofitable.


Financial Health

How is SoFi Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SOFI's short term assets ($5.5B) exceed its short term liabilities ($308.1M).

Long Term Liabilities: SOFI's short term assets ($5.5B) exceed its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: SOFI's debt to equity ratio (53.7%) is considered high.

Reducing Debt: Insufficient data to determine if SOFI's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SOFI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SOFI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is SoFi Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SOFI'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 SOFI'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?

1.9yrs

Average management tenure


CEO

Anthony Noto (52 yo)

3.5yrs

Tenure

US$53,533,739

Compensation

Mr. Anthony J. Noto is the Chief Executive Officer of SoFi Mortgage, LLC. and SoFi Lending Corp. He serves as Independent Director at Franklin Resources, Inc. since February 11, 2020. Mr. Noto has been the...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD53.53M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Insufficient data to compare Anthony's compensation with company performance.


Leadership Team

Experienced Management: SOFI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SOFI's board of directors are not considered experienced ( 2.1 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: SOFI only recently listed within the past 12 months.


Top Shareholders

Company Information

SoFi Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: SoFi Technologies, Inc.
  • Ticker: SOFI
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$11.992b
  • Shares outstanding: 794.69m
  • Website: https://www.sofi.com

Number of Employees


Location

  • SoFi Technologies, Inc.
  • 234 1st Street
  • San Francisco
  • California
  • 94105
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:16
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.