LEXINFINTECH HOLDINGS L-ADR (LX) Stock Fundamental Analysis
USA - NASDAQ:LX - US5288771034 - ADR
5.23 USD
+0.22 (+4.39%)
5.23 USD
0 (0%)
Overall LX gets a fundamental rating of 6 out of 10. We evaluated LX against 55 industry peers in the Consumer Finance industry. Both the profitability and the financial health of LX get a neutral evaluation. Nothing too spectacular is happening here. LX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make LX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year LX was profitable.
Each year in the past 5 years LX has been profitable.
LX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LX has a better Return On Assets (7.17%) than 80.00% of its industry peers.
The Return On Equity of LX (13.90%) is better than 61.82% of its industry peers.
LX has a Return On Invested Capital of 12.59%. This is amongst the best in the industry. LX outperforms 85.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LX is in line with the industry average of 10.98%.
The last Return On Invested Capital (12.59%) for LX is above the 3 year average (10.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.9% | ||
| ROIC | 12.59% |
ROA(3y)4.38%
ROA(5y)5.44%
ROE(3y)10.23%
ROE(5y)14.12%
ROIC(3y)10.13%
ROIC(5y)12.29%
1.3 Margins
LX has a Profit Margin (11.51%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LX has declined.
Looking at the Operating Margin, with a value of 14.39%, LX is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LX has declined.
LX's Gross Margin of 35.49% is in line compared to the rest of the industry. LX outperforms 41.82% of its industry peers.
In the last couple of years the Gross Margin of LX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.39% | ||
| PM (TTM) | 11.51% | ||
| GM | 35.49% |
OM growth 3Y-15.82%
OM growth 5Y-8.27%
PM growth 3Y-27.71%
PM growth 5Y-18.57%
GM growth 3Y-11.19%
GM growth 5Y-5.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LX is creating value.
Compared to 1 year ago, LX has more shares outstanding
The number of shares outstanding for LX has been reduced compared to 5 years ago.
The debt/assets ratio for LX has been reduced compared to a year ago.
2.2 Solvency
LX has an Altman-Z score of 2.23. This is not the best score and indicates that LX is in the grey zone with still only limited risk for bankruptcy at the moment.
LX's Altman-Z score of 2.23 is fine compared to the rest of the industry. LX outperforms 76.36% of its industry peers.
LX has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LX (0.11) is better than 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.23 |
ROIC/WACC4.86
WACC2.59%
2.3 Liquidity
LX has a Current Ratio of 1.89. This is a normal value and indicates that LX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.89, LX is doing good in the industry, outperforming 74.55% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that LX should not have too much problems paying its short term obligations.
LX has a better Quick ratio (1.88) than 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
LX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.07%, which is quite impressive.
Measured over the past years, LX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.07% on average per year.
The Revenue has been growing slightly by 0.80% in the past year.
LX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.02% yearly.
EPS 1Y (TTM)94.07%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%112.12%
Revenue 1Y (TTM)0.8%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%0.72%
3.2 Future
Based on estimates for the next years, LX will show a very strong growth in Earnings Per Share. The EPS will grow by 47.66% on average per year.
LX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.78% yearly.
EPS Next Y100.02%
EPS Next 2Y66.56%
EPS Next 3Y47.66%
EPS Next 5YN/A
Revenue Next Year4.71%
Revenue Next 2Y11.04%
Revenue Next 3Y9.78%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.05, the valuation of LX can be described as very cheap.
92.73% of the companies in the same industry are more expensive than LX, based on the Price/Earnings ratio.
LX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
A Price/Forward Earnings ratio of 2.07 indicates a rather cheap valuation of LX.
Based on the Price/Forward Earnings ratio, LX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LX to the average of the S&P500 Index (22.94), we can say LX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.05 | ||
| Fwd PE | 2.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LX is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LX's earnings are expected to grow with 47.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y66.56%
EPS Next 3Y47.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.14%, LX is a good candidate for dividend investing.
In the last 3 months the price of LX has falen by -24.86%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.81, LX pays a better dividend. On top of this LX pays more dividend than 85.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, LX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
5.2 History
LX has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y66.56%
EPS Next 3Y47.66%
5.23
+0.22 (+4.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner Change0.02%
Ins Owners3.32%
Ins Owner ChangeN/A
Market Cap859.88M
Analysts87.14
Price Target11.76 (124.86%)
Short Float %14.26%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
Yearly Dividend0.15
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.05 | ||
| Fwd PE | 2.07 | ||
| P/S | 0.44 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.53 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 5.05 |
EPS(TTM)1.29
EY24.67%
EPS(NY)2.53
Fwd EY48.35%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS11.97
BVpS9.91
TBVpS9.19
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.9% | ||
| ROCE | 15.58% | ||
| ROIC | 12.59% | ||
| ROICexc | 12.59% | ||
| ROICexgc | 13.47% | ||
| OM | 14.39% | ||
| PM (TTM) | 11.51% | ||
| GM | 35.49% | ||
| FCFM | N/A |
ROA(3y)4.38%
ROA(5y)5.44%
ROE(3y)10.23%
ROE(5y)14.12%
ROIC(3y)10.13%
ROIC(5y)12.29%
ROICexc(3y)12.87%
ROICexc(5y)15.39%
ROICexgc(3y)14.21%
ROICexgc(5y)17.09%
ROCE(3y)12.91%
ROCE(5y)16.85%
ROICexcg growth 3Y-10.76%
ROICexcg growth 5Y-2.98%
ROICexc growth 3Y-10.33%
ROICexc growth 5Y-4.66%
OM growth 3Y-15.82%
OM growth 5Y-8.27%
PM growth 3Y-27.71%
PM growth 5Y-18.57%
GM growth 3Y-11.19%
GM growth 5Y-5.56%
F-ScoreN/A
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 2.23 |
F-ScoreN/A
WACC2.59%
ROIC/WACC4.86
Cap/Depr(3y)199.68%
Cap/Depr(5y)179%
Cap/Sales(3y)1.67%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)94.07%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%112.12%
EPS Next Y100.02%
EPS Next 2Y66.56%
EPS Next 3Y47.66%
EPS Next 5YN/A
Revenue 1Y (TTM)0.8%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%0.72%
Revenue Next Year4.71%
Revenue Next 2Y11.04%
Revenue Next 3Y9.78%
Revenue Next 5YN/A
EBIT growth 1Y-19.66%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.74%
EBIT Next Year6.24%
EBIT Next 3Y23.4%
EBIT Next 5YN/A
FCF growth 1Y-67.37%
FCF growth 3Y-31.05%
FCF growth 5YN/A
OCF growth 1Y-61.2%
OCF growth 3Y-25.99%
OCF growth 5YN/A