NYSE:LC

Stock Analysis Report

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Executive Summary

LendingClub Corporation provides unsecured personal loans in the United States. More Details


Snowflake Analysis

High growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.3%

LC

-8.2%

US Consumer Finance

-5.3%

US Market


1 Year Return

-65.2%

LC

-23.1%

US Consumer Finance

10.4%

US Market

Return vs Industry: LC underperformed the US Consumer Finance industry which returned -21.6% over the past year.

Return vs Market: LC underperformed the US Market which returned 12% over the past year.


Shareholder returns

LCIndustryMarket
7 Day-9.3%-8.2%-5.3%
30 Day-5.1%-2.5%-2.1%
90 Day-10.5%5.1%1.7%
1 Year-65.2%-65.2%-21.4%-23.1%12.9%10.4%
3 Year-83.4%-83.4%-8.7%-13.4%34.3%25.4%
5 Year-93.6%-93.6%14.5%5.0%73.7%54.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LendingClub undervalued compared to its fair value and its price relative to the market?

0.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LC's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: LC 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 LC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LC is good value based on its PB Ratio (0.6x) compared to the US Consumer Finance industry average (1x).


Next Steps

Future Growth

How is LendingClub forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

81.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: LC's revenue (25.6% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: LC's revenue (25.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LC's Return on Equity is forecast to be low in 3 years time (2.3%).


Next Steps

Past Performance

How has LendingClub performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LC is currently unprofitable.

Growing Profit Margin: LC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LC is unprofitable, and losses have increased over the past 5 years at a rate of 11.3% per year.

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

Earnings vs Industry: LC is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-25.8%).


Return on Equity

High ROE: LC has a negative Return on Equity (-16.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is LendingClub's financial position?


Financial Position Analysis

Short Term Liabilities: LC's short term assets ($1.1B) exceed its short term liabilities ($188.6M).

Long Term Liabilities: LC's short term assets ($1.1B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: LC's debt to equity ratio (90.2%) is considered high.

Reducing Debt: LC's debt to equity ratio has increased from 0.2% to 90.2% 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: LC has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is LendingClub current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

3.6yrs

Average management tenure


CEO

Scott Sanborn (51 yo)

4.42yrs

Tenure

US$6,118,439

Compensation

Mr. Scott C. Sanborn has been the Chief Executive Officer of LendingClub Corporation since June 28, 2016. Mr. Sanborn served as the President of LendingClub Corporation since April 18, 2016 until May 22, 2 ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD6.12M) is above average for companies of similar size in the US market ($USD1.96M).

Compensation vs Earnings: Scott's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Sanborn
CEO & Director4.42yrsUS$6.12m0.82%
$ 3.5m
Thomas Casey
Chief Financial Officer4yrsUS$3.78m0.16%
$ 704.3k
Brandon Pace
General Counsel & Corporate Secretary1.83yrsUS$2.50m0.049%
$ 210.2k
Timothy Bogan
Chief Banking Integration Officer4yrsUS$2.64m0.089%
$ 382.2k
Fergal Stack
Principal Accounting Officer & Corporate Controller3.17yrsno data0.065%
$ 276.4k
Bahman Koohestani
Chief Technology Officer2.42yrsUS$4.59m0.095%
$ 406.8k
Sameer Gokhale
Head of Investor Relationsno datano datano data
Whitney Jones
Chief People Officer2.42yrsno datano data
Tina Wilson
Chief People Officerno datano datano data
Valerie Kay
Chief Capital Officer4.17yrsno data0.080%
$ 341.4k
Raman Suri
Head of Retail Investors & Senior VP4.17yrsno datano data
Joe Schenone
Chief Platform Officer1yrno datano data

3.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: LC's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Sanborn
CEO & Director4.42yrsUS$6.12m0.82%
$ 3.5m
Daniel Ciporin
Independent Director13.17yrsUS$188.33k0.27%
$ 1.1m
Kenneth Denman
Independent Director3.25yrsUS$185.48k0.037%
$ 158.0k
Patricia McCord
Independent Director2.83yrsUS$181.09k0.032%
$ 136.5k
Michael Zeisser
Independent Director1yrUS$265.25kno data
Timothy Mayopoulos
Independent Director4.17yrsUS$186.66k0.051%
$ 218.9k
Simon Williams
Independent Director5.83yrsUS$223.01k0.015%
$ 65.2k
John Morris
Independent Chairman4.42yrsUS$201.26k0.039%
$ 168.5k
Susan Athey
Independent Director2.58yrsUS$185.48k0.025%
$ 107.8k

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: LC's board of directors are considered experienced (4.2 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

LendingClub Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LendingClub Corporation
  • Ticker: LC
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$428.076m
  • Shares outstanding: 90.50m
  • Website: https://www.lendingclub.com

Number of Employees


Location

  • LendingClub Corporation
  • 595 Market Street
  • Suite 200
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LCNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2014
8LCADB (Deutsche Boerse AG)YesCommon StockDEEURDec 2014

Biography

LendingClub Corporation provides unsecured personal loans in the United States. It operates an online lending marketplace platform that connects borrowers and investors. The company’s marketplace facilitat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:30
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.