NYSE:ONDK

Stock Analysis Report

Executive Summary

On Deck Capital, Inc. operates an online platform for small business lending in the United States, Canada, and Australia.

Snowflake

Fundamentals

Proven track record and fair value.


Similar Companies

Share Price & News

How has On Deck Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

ONDK

1.1%

US Diversified Financial

1.8%

US Market


1 Year Return

-48.6%

ONDK

-0.1%

US Diversified Financial

7.3%

US Market

Return vs Industry: ONDK underperformed the US Diversified Financial industry which returned -0.1% over the past year.

Return vs Market: ONDK underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

ONDKIndustryMarket
7 Day1.1%1.1%1.8%
30 Day3.8%-0.9%-0.7%
90 Day-9.6%0.9%0.06%
1 Year-48.6%-48.6%0.06%-0.1%9.7%7.3%
3 Year-21.5%-21.5%43.3%42.9%46.3%36.9%
5 Yearn/a47.1%46.5%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is On Deck Capital undervalued compared to its fair value and its price relative to the market?

7.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ONDK ($3.58) is trading above our estimate of fair value ($3.03)

Significantly Undervalued: ONDK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ONDK is good value based on its PE Ratio (7.9x) compared to the Diversified Financial industry average (17.2x).

PE vs Market: ONDK is good value based on its PE Ratio (7.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ONDK is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ONDK is overvalued based on its PB Ratio (0.9x) compared to the US Diversified Financial industry average (0.7x).


Next Steps

Future Growth

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

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONDK's forecast earnings growth (17.5% per year) is above the savings rate (2.7%).

Earnings vs Market: ONDK's earnings (17.5% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: ONDK's revenue (11.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ONDK's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ONDK's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has On Deck Capital performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ONDK has become profitable over the past 5 years, growing earnings by 31.9% per year.

Accelerating Growth: ONDK's earnings growth over the past year (641.8%) exceeds its 5-year average (31.9% per year).

Earnings vs Industry: ONDK earnings growth over the past year (641.8%) exceeded the Diversified Financial industry 18.3%.


Return on Equity

High ROE: ONDK's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: ONDK has a higher Return on Assets than the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ONDK's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is On Deck Capital'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: ONDK has a low level of unsold assets or inventory.

Debt Coverage by Assets: ONDK's debt is covered by short term assets (assets are 1.383060x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is On Deck Capital's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if ONDK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ONDK'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 ONDK'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 On Deck Capital's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Noah Breslow (44yo)

7.3yrs

Tenure

US$2,557,612

Compensation

Mr. Noah Breslow has been the Chairman and Chief Executive Officer of On Deck Capital, Inc. since June 2012. Mr. Breslow served as the Chief Product Officer of OnDeck Capital Inc. from October 2009 until S ...


CEO Compensation Analysis

Compensation vs. Market: Noah's total compensation ($USD2.56M) is about average for companies of similar size in the US market ($USD1.16M).

Compensation vs Earnings: Noah's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: ONDK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ONDK's board of directors are considered experienced (4.5 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$15,92519 Mar 19
Nicholas Sinigaglia
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,800
Max PriceUS$5.69
BuyUS$47,42720 Feb 19
Noah Breslow
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,000
Max PriceUS$5.93
BuyUS$35,34020 Feb 19
Ronald Verni
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$5.89
BuyUS$42,13920 Feb 19
Daniel Henson
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares7,000
Max PriceUS$6.02
SellUS$878,58415 Nov 18
Sapphire Ventures LLC
EntityCompany
Shares105,825
Max PriceUS$8.30

Ownership Breakdown


Management Team

  • Rob Young

    President of International

    • Tenure: 0yrs
  • Noah Breslow (44yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$2.56m
  • Nicholas Sinigaglia (49yo)

    Chief Accounting Officer

    • Tenure: 4.8yrs
  • Steve Klimas

    Head of Investor Relations

    • Tenure: 1.3yrs
  • Ken Brause (54yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: US$2.12m
  • Andrea Gellert (50yo)

    Chief Revenue Officer

    • Tenure: 2.4yrs
    • Compensation: US$742.39k
  • Cory Kampfer (42yo)

    COO & General Counsel

    • Tenure: 1.7yrs
    • Compensation: US$734.79k
  • Nick Brown (47yo)

    Chief Risk Officer

    • Tenure: 2.9yrs
    • Compensation: US$1.11m
  • David Miller

    Senior Vice President of Technology

    • Tenure: 1.8yrs
  • Deb Stroff

    Chief People Officer

    • Tenure: 0.4yrs

Board Members

  • Bruce Nolop (68yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$202.50k
  • Ron Verni (71yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$201.00k
  • Dan Henson (58yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$202.50k
  • Neil Wolfson (55yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$212.00k
  • Noah Breslow (44yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$2.56m
  • Manolo Sánchez Rodriguez (53yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$336.85k
  • Jane Thompson (67yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$202.50k
  • Chandra Dhandapani (51yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$336.20k

Company Information

On Deck Capital, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: On Deck Capital, Inc.
  • Ticker: ONDK
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: US$273.159m
  • Shares outstanding: 76.30m
  • Website: https://www.ondeck.com

Number of Employees


Location

  • On Deck Capital, Inc.
  • 1400 Broadway
  • 25th Floor
  • New York
  • New York
  • 10018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONDKNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2014
2ODDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2014

Biography

On Deck Capital, Inc. operates an online platform for small business lending in the United States, Canada, and Australia. It offers term loans and lines of credit. The company also provides technology and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:16
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.