LENDINGCLUB CORP (LC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LC - US52603A2087 - Common Stock
19.07 USD
-0.83 (-4.17%)
19.13 USD
+0.06 (+0.31%)
We assign a fundamental rating of 3 out of 10 to LC. LC was compared to 55 industry peers in the Consumer Finance industry. LC has a medium profitability rating, but doesn't score so well on its financial health evaluation. LC is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year LC was profitable.
LC had a negative operating cash flow in the past year.
LC had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: LC reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 0.94%, LC is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
LC has a worse Return On Equity (7.10%) than 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.95%, LC is in line with its industry, outperforming 43.64% of the companies in the same industry.
LC had an Average Return On Invested Capital over the past 3 years of 0.81%. This is significantly below the industry average of 12.59%.
The 3 year average ROIC (0.81%) for LC is below the current ROIC(0.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 7.1% | ||
| ROIC | 0.95% |
ROA(3y)1.52%
ROA(5y)-1.03%
ROE(3y)10.61%
ROE(5y)1.62%
ROIC(3y)0.81%
ROIC(5y)N/A
1.3 Margins
LC has a Profit Margin of 10.94%. This is comparable to the rest of the industry: LC outperforms 54.55% of its industry peers.
LC's Profit Margin has improved in the last couple of years.
The Operating Margin of LC (14.54%) is comparable to the rest of the industry.
LC's Operating Margin has improved in the last couple of years.
The Gross Margin of LC (82.88%) is better than 78.18% of its industry peers.
In the last couple of years the Gross Margin of LC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.54% | ||
| PM (TTM) | 10.94% | ||
| GM | 82.88% |
OM growth 3Y52.19%
OM growth 5YN/A
PM growth 3Y42.12%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y5.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LC is destroying value.
LC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LC has more shares outstanding
LC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.71, we must say that LC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.71, LC is doing worse than 69.09% of the companies in the same industry.
LC has a Debt/Equity ratio of 6.44. This is a high value indicating a heavy dependency on external financing.
LC has a Debt to Equity ratio of 6.44. This is in the lower half of the industry: LC underperforms 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.71 |
ROIC/WACC0.16
WACC6.07%
2.3 Liquidity
LC has a Current Ratio of 0.09. This is a bad value and indicates that LC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.09, LC is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.09 indicates that LC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.09, LC is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
LC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.30%, which is quite impressive.
Measured over the past years, LC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.60% on average per year.
Looking at the last year, LC shows a very strong growth in Revenue. The Revenue has grown by 25.70%.
Measured over the past years, LC shows a decrease in Revenue. The Revenue has been decreasing by -4.78% on average per year.
EPS 1Y (TTM)91.3%
EPS 3Y51.27%
EPS 5Y11.6%
EPS Q2Q%184.62%
Revenue 1Y (TTM)25.7%
Revenue growth 3Y-1.3%
Revenue growth 5Y-4.78%
Sales Q2Q%31.88%
3.2 Future
The Earnings Per Share is expected to grow by 70.82% on average over the next years. This is a very strong growth
Based on estimates for the next years, LC will show a very strong growth in Revenue. The Revenue will grow by 20.86% on average per year.
EPS Next Y161.51%
EPS Next 2Y89.87%
EPS Next 3Y70.82%
EPS Next 5YN/A
Revenue Next Year28.23%
Revenue Next 2Y22.01%
Revenue Next 3Y20.86%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.67, LC is valued on the expensive side.
69.09% of the companies in the same industry are cheaper than LC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LC to the average of the S&P500 Index (26.55), we can say LC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 11.76, the valuation of LC can be described as reasonable.
LC's Price/Forward Earnings is on the same level as the industry average.
LC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
LC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LC is cheaper than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
LC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LC's earnings are expected to grow with 70.82% in the coming years.
PEG (NY)0.13
PEG (5Y)1.87
EPS Next 2Y89.87%
EPS Next 3Y70.82%
5. Dividend
5.1 Amount
No dividends for LC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
19.07
-0.83 (-4.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners85.8%
Inst Owner Change6.24%
Ins Owners2.87%
Ins Owner Change-0.12%
Market Cap2.20B
Revenue(TTM)949.58M
Net Income(TTM)103.84M
Analysts86
Price Target22.62 (18.62%)
Short Float %5.26%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)63.7%
Min EPS beat(2)18.41%
Max EPS beat(2)108.99%
EPS beat(4)2
Avg EPS beat(4)26.06%
Min EPS beat(4)-14.55%
Max EPS beat(4)108.99%
EPS beat(8)6
Avg EPS beat(8)141.28%
EPS beat(12)9
Avg EPS beat(12)107.46%
EPS beat(16)13
Avg EPS beat(16)86.27%
Revenue beat(2)2
Avg Revenue beat(2)3.42%
Min Revenue beat(2)0.81%
Max Revenue beat(2)6.02%
Revenue beat(4)3
Avg Revenue beat(4)1.9%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)6.02%
Revenue beat(8)7
Avg Revenue beat(8)6.73%
Revenue beat(12)8
Avg Revenue beat(12)4.23%
Revenue beat(16)12
Avg Revenue beat(16)4.33%
PT rev (1m)9.51%
PT rev (3m)22.82%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)13.82%
EPS NY rev (1m)0.7%
EPS NY rev (3m)17.5%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 11.76 | ||
| P/S | 2.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.5 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)0.88
EY4.61%
EPS(NY)1.62
Fwd EY8.51%
FCF(TTM)-18.65
FCFYN/A
OCF(TTM)-17.42
OCFYN/A
SpS8.24
BVpS12.68
TBVpS11.95
PEG (NY)0.13
PEG (5Y)1.87
Graham Number15.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 7.1% | ||
| ROCE | 9.44% | ||
| ROIC | 0.95% | ||
| ROICexc | 1.03% | ||
| ROICexgc | 1.06% | ||
| OM | 14.54% | ||
| PM (TTM) | 10.94% | ||
| GM | 82.88% | ||
| FCFM | N/A |
ROA(3y)1.52%
ROA(5y)-1.03%
ROE(3y)10.61%
ROE(5y)1.62%
ROIC(3y)0.81%
ROIC(5y)N/A
ROICexc(3y)0.94%
ROICexc(5y)N/A
ROICexgc(3y)0.98%
ROICexgc(5y)N/A
ROCE(3y)6.99%
ROCE(5y)N/A
ROICexgc growth 3Y10.19%
ROICexgc growth 5YN/A
ROICexc growth 3Y11.89%
ROICexc growth 5YN/A
OM growth 3Y52.19%
OM growth 5YN/A
PM growth 3Y42.12%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y5.79%
F-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 46.18 | ||
| Cap/Depr | 215.14% | ||
| Cap/Sales | 14.95% | ||
| Interest Coverage | 0.38 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | -0.71 |
F-Score4
WACC6.07%
ROIC/WACC0.16
Cap/Depr(3y)125.69%
Cap/Depr(5y)209.79%
Cap/Sales(3y)6.55%
Cap/Sales(5y)6.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.3%
EPS 3Y51.27%
EPS 5Y11.6%
EPS Q2Q%184.62%
EPS Next Y161.51%
EPS Next 2Y89.87%
EPS Next 3Y70.82%
EPS Next 5YN/A
Revenue 1Y (TTM)25.7%
Revenue growth 3Y-1.3%
Revenue growth 5Y-4.78%
Sales Q2Q%31.88%
Revenue Next Year28.23%
Revenue Next 2Y22.01%
Revenue Next 3Y20.86%
Revenue Next 5YN/A
EBIT growth 1Y104.05%
EBIT growth 3Y50.21%
EBIT growth 5YN/A
EBIT Next Year84.19%
EBIT Next 3Y34.25%
EBIT Next 5YN/A
FCF growth 1Y-511.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-596.45%
OCF growth 3YN/A
OCF growth 5YN/A
LENDINGCLUB CORP / LC FAQ
What is the ChartMill fundamental rating of LENDINGCLUB CORP (LC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to LC.
Can you provide the valuation status for LENDINGCLUB CORP?
ChartMill assigns a valuation rating of 4 / 10 to LENDINGCLUB CORP (LC). This can be considered as Fairly Valued.
How profitable is LENDINGCLUB CORP (LC) stock?
LENDINGCLUB CORP (LC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of LENDINGCLUB CORP (LC) stock?
The Price/Earnings (PE) ratio for LENDINGCLUB CORP (LC) is 21.67 and the Price/Book (PB) ratio is 1.5.
What is the financial health of LENDINGCLUB CORP (LC) stock?
The financial health rating of LENDINGCLUB CORP (LC) is 0 / 10.