NYSE:LC

Stock Analysis Report

Executive Summary

LendingClub Corporation operates an online lending marketplace platform that connects borrowers and investors in the United States.


Snowflake Analysis

Moderate growth potential with worrying balance sheet.


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

-6.0%

LC

-2.5%

US Consumer Finance

-2.7%

US Market


1 Year Return

-22.9%

LC

17.5%

US Consumer Finance

21.2%

US Market

Return vs Industry: LC underperformed the US Consumer Finance industry which returned 21.7% over the past year.

Return vs Market: LC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

LCIndustryMarket
7 Day-6.0%-2.5%-2.7%
30 Day-6.5%-0.5%0.09%
90 Day-9.9%3.2%6.9%
1 Year-22.9%-22.9%19.5%17.5%23.8%21.2%
3 Year-62.0%-62.0%39.5%32.8%48.1%38.6%
5 Year-88.4%-88.4%44.3%34.2%72.5%53.4%

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?

1.16x

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 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 overvalued based on its PB Ratio (1.2x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is LendingClub forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

52.2%

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 (1.7%).

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 (7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: LC's revenue (7% per year) is forecast to grow slower 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 (8.5%).


Next Steps

Past Performance

How has LendingClub performed over the past 5 years?

-27.1%

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 -27.1% 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 (21.8%).


Return on Equity

High ROE: LC has a negative Return on Equity (-4.99%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LendingClub'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: LC has a low level of unsold assets or inventory.

Debt Coverage by Assets: LC's debt is covered by short term assets (assets are 4.9x debt).


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.


Financial Institutions Analysis

Asset Level: LC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LC has a sufficient allowance for bad loans.

Low Risk Liabilities: LC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LC has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate LC'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 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

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

1.7yrs

Average management tenure


CEO

Scott Sanborn (50yo)

3.7yrs

Tenure

US$6,025,002

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 ($USD6.03M) is above average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: LC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: LC's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$2,64104 Sep 19
Kenneth Denman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200
Max PriceUS$13.21
BuyUS$194,92615 Aug 19
Steve Allocca
EntityIndividual
Role
President
President
Shares14,000
Max PriceUS$13.92
SellUS$90,24014 Aug 19
Susan Athey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$15.04
SellUS$1,740,18321 May 19
Kleiner Perkins Caufield & Byers
EntityCompany
Shares105,716.2
Max PriceUS$16.54
SellUS$2,726,26316 May 19
Kleiner Perkins Caufield & Byers
EntityCompany
Shares161,647
Max PriceUS$16.97
SellUS$2,807,06614 May 19
Kleiner Perkins Caufield & Byers
EntityCompany
Shares160,500
Max PriceUS$17.87
BuyUS$44,70004 Mar 19
Thomas Casey
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,000
Max PriceUS$14.90
SellUS$377,47622 Feb 19
Simon Williams
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares23,200
Max PriceUS$16.27

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Management Team

  • Tom Casey (56yo)

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: US$5.68m
  • Simon Mays-Smith

    Head of Investor Relations

    • Scott Sanborn (50yo)

      CEO & Director

      • Tenure: 3.7yrs
      • Compensation: US$6.03m
    • Bahman Koohestani (57yo)

      Chief Technology Officer

      • Tenure: 1.7yrs
      • Compensation: US$4.59m
    • Steve Allocca (46yo)

      President

      • Tenure: 2.7yrs
      • Compensation: US$3.79m
    • Alexandra Shapiro

      Chief Marketing Officer

      • Tenure: 0.6yrs
    • Fergal Stack

      Principal Accounting Officer & Corporate Controller

      • Tenure: 2.4yrs
    • Whitney Jones

      Chief People Officer

      • Tenure: 1.7yrs
    • Ronnie Momen (51yo)

      Chief Lending Officer

      • Tenure: 1.5yrs
      • Compensation: US$3.98m
    • Brandon Pace (46yo)

      Interim General Counsel & Corporate Secretary

      • Tenure: 1.1yrs

    Board Members

    • Dan Ciporin (61yo)

      Independent Director

      • Tenure: 12.4yrs
      • Compensation: US$271.85k
    • Ken Denman (60yo)

      Independent Director

      • Tenure: 2.6yrs
      • Compensation: US$316.53k
    • Patty McCord (65yo)

      Independent Director

      • Tenure: 2.1yrs
      • Compensation: US$624.16k
    • Michael Zeisser (54yo)

      Director

      • Tenure: 0.3yrs
    • Tim Mayopoulos (60yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: US$260.50k
    • Simon Williams (61yo)

      Independent Director

      • Tenure: 5.2yrs
      • Compensation: US$273.00k
    • Scott Sanborn (50yo)

      CEO & Director

      • Tenure: 3.7yrs
      • Compensation: US$6.03m
    • Hans Morris (60yo)

      Independent Chairman

      • Tenure: 3.7yrs
      • Compensation: US$282.50k
    • Susan Athey (48yo)

      Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$620.76k

    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$1.033b
    • Shares outstanding: 88.13m
    • 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 operates an online lending marketplace platform that connects borrowers and investors in the United States. The company’s marketplace facilitates various types of loan products for consumers and small businesses, including unsecured personal loans, unsecured education and patient installment loans, auto refinance loans, and small business loans. It also enables investors to invest in a range of loans based on term and credit. The company was founded in 2006 and is headquartered in San Francisco, California. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/28 00:23
    End of Day Share Price2020/01/27 00:00
    Earnings2019/09/30
    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.