Social Finance, Inc., a finance company, operates an online platform that provides financial services.
SoFi Technologies Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$15.09|
|52 Week High||US$13.56|
|52 Week Low||US$24.95|
|1 Month Change||7.48%|
|3 Month Change||-32.96%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-33.38%|
Recent News & Updates
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.
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.
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.
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.
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.
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.
|SOFI||US Consumer Finance||US Market|
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.
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
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
|SOFI fundamental statistics|
Is SOFI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SOFI income statement (TTM)|
|Cost of Revenue||US$223.03m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-4.40|
|Net Profit Margin||-70.27%|
How did SOFI perform over the long term?See historical performance and comparison
Is SoFi Technologies undervalued compared to its fair value and its price relative to the market?
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).
How is SoFi Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
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%).
How has SoFi Technologies performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Anthony Noto (52 yo)
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.
Experienced Management: SOFI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Experienced Board: SOFI's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
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.
Dilution of Shares: SOFI only recently listed within the past 12 months.
SoFi Technologies, Inc.'s employee growth, exchange listings and data sources
- 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
- SoFi Technologies, Inc.
- 234 1st Street
- San Francisco
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:16|
|End of Day Share Price||2021/09/17 00:00|
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.