LEXINFINTECH HOLDINGS L-ADR (LX) Stock Fundamental Analysis
NASDAQ:LX - Nasdaq - US5288771034 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to LX. LX was compared to 52 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LX. With these ratings, LX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year LX was profitable.
LX had a positive operating cash flow in the past year.
Each year in the past 5 years LX has been profitable.
Of the past 5 years LX 4 years had a positive operating cash flow.
1.2 Ratios
LX has a better Return On Assets (4.95%) than 78.85% of its industry peers.
LX has a Return On Equity (10.25%) which is comparable to the rest of the industry.
LX has a Return On Invested Capital of 14.62%. This is amongst the best in the industry. LX outperforms 84.62% of its industry peers.
LX had an Average Return On Invested Capital over the past 3 years of 10.13%. This is in line with the industry average of 10.31%.
The 3 year average ROIC (10.13%) for LX is below the current ROIC(14.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 10.25% | ||
| ROIC | 14.62% |
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's Profit Margin of 7.75% is in line compared to the rest of the industry. LX outperforms 46.15% of its industry peers.
LX's Profit Margin has declined in the last couple of years.
LX has a Operating Margin of 16.10%. This is in the better half of the industry: LX outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of LX has declined.
LX has a Gross Margin (35.39%) which is in line with its industry peers.
LX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.1% | ||
| PM (TTM) | 7.75% | ||
| GM | 35.39% |
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
Compared to 5 years ago, LX has less shares outstanding
LX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that LX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LX (2.36) is better than 75.00% of its industry peers.
LX has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as LX would need 6.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.26, LX is in line with its industry, outperforming 55.77% of the companies in the same industry.
LX has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, LX belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.36 |
ROIC/WACC4.55
WACC3.21%
2.3 Liquidity
LX has a Current Ratio of 1.86. This is a normal value and indicates that LX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.86, LX is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 1.86 indicates that LX should not have too much problems paying its short term obligations.
LX's Quick ratio of 1.86 is fine compared to the rest of the industry. LX outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
LX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.46%, which is quite good.
The earnings per share for LX have been decreasing by -14.07% on average. This is quite bad
Looking at the last year, LX shows a quite strong growth in Revenue. The Revenue has grown by 8.78% in the last year.
The Revenue has been growing slightly by 6.02% on average over the past years.
EPS 1Y (TTM)9.46%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%93.01%
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%-5.28%
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 47.97% on average per year.
Based on estimates for the next years, LX will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y104.96%
EPS Next 2Y69.42%
EPS Next 3Y47.97%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y4.66%
Revenue Next 3Y5.45%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LX is valuated cheaply with a Price/Earnings ratio of 6.73.
LX's Price/Earnings ratio is a bit cheaper when compared to the industry. LX is cheaper than 78.85% of the companies in the same industry.
LX is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
LX is valuated cheaply with a Price/Forward Earnings ratio of 2.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LX indicates a rather cheap valuation: LX is cheaper than 100.00% of the companies listed in the same industry.
LX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.73 | ||
| Fwd PE | 2.77 |
4.2 Price Multiples
78.85% of the companies in the same industry are more expensive than LX, based on the Enterprise Value to EBITDA ratio.
LX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.17 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
LX'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 LX's earnings are expected to grow with 47.97% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y69.42%
EPS Next 3Y47.97%
5. Dividend
5.1 Amount
LX has a Yearly Dividend Yield of 2.03%.
LX's Dividend Yield is a higher than the industry average which is at 3.66.
LX's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
14.94% of the earnings are spent on dividend by LX. This is a low number and sustainable payout ratio.
DP14.94%
EPS Next 2Y69.42%
EPS Next 3Y47.97%
NASDAQ:LX (7/1/2025, 11:27:12 AM)
7.205
0 (-0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners61.22%
Inst Owner Change41.08%
Ins Owners3.32%
Ins Owner ChangeN/A
Market Cap1.18B
Analysts87.14
Price Target11.76 (63.22%)
Short Float %5.59%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.15
Dividend Growth(5Y)N/A
DP14.94%
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)-3.08%
PT rev (3m)79.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)6.3%
EPS NY rev (3m)23.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.28%
Revenue NY rev (3m)-4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.73 | ||
| Fwd PE | 2.77 | ||
| P/S | 0.6 | ||
| P/FCF | 10.17 | ||
| P/OCF | 7.85 | ||
| P/B | 0.79 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)1.07
EY14.85%
EPS(NY)2.6
Fwd EY36.1%
FCF(TTM)0.71
FCFY9.83%
OCF(TTM)0.92
OCFY12.74%
SpS12.06
BVpS9.12
TBVpS8.38
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 10.25% | ||
| ROCE | 18.09% | ||
| ROIC | 14.62% | ||
| ROICexc | 17.93% | ||
| ROICexgc | 19.57% | ||
| OM | 16.1% | ||
| PM (TTM) | 7.75% | ||
| GM | 35.39% | ||
| FCFM | 5.87% |
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-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 224.54% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 50.62 | ||
| Cash Conversion | 45.13% | ||
| Profit Quality | 75.82% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 2.36 |
F-Score6
WACC3.21%
ROIC/WACC4.55
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)9.46%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%93.01%
EPS Next Y104.96%
EPS Next 2Y69.42%
EPS Next 3Y47.97%
EPS Next 5YN/A
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%-5.28%
Revenue Next Year0.75%
Revenue Next 2Y4.66%
Revenue Next 3Y5.45%
Revenue Next 5YN/A
EBIT growth 1Y21.67%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.74%
EBIT Next Year55.36%
EBIT Next 3YN/A
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