2.88 USD
-0.02 (-0.69%)
2.87 USD
-0.01 (-0.35%)
We assign a fundamental rating of 5 out of 10 to LX. LX was compared to 53 industry peers in the Consumer Finance industry. LX has an average financial health and profitability rating. LX may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, LX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- LX had positive earnings in the past year.
- 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 Return On Assets of 7.17%. This is amongst the best in the industry. LX outperforms 81.13% of its industry peers.
- LX has a Return On Equity (13.90%) which is in line with its industry peers.
- With an excellent Return On Invested Capital value of 12.59%, LX belongs to the best of the industry, outperforming 83.02% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for LX is below the industry average of 12.42%.
- 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.
- LX's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 14.39%, LX perfoms like the industry average, outperforming 52.83% of the companies in the same industry.
- In the last couple of years the Operating Margin of LX has declined.
- LX has a Gross Margin (35.49%) 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 | 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
- LX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, LX has more shares outstanding
- LX has less shares outstanding than it did 5 years ago.
- LX has a better debt/assets ratio than last year.
2.2 Solvency
- LX has an Altman-Z score of 2.09. 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.
- With a decent Altman-Z score value of 2.09, LX is doing good in the industry, outperforming 77.36% of the companies in the same industry.
- LX has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- LX has a better Debt to Equity ratio (0.11) than 86.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.09 |
ROIC/WACC7
WACC1.8%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that LX should not have too much problems paying its short term obligations.
- LX's Current ratio of 1.89 is fine compared to the rest of the industry. LX outperforms 71.70% of its industry peers.
- A Quick Ratio of 1.88 indicates that LX should not have too much problems paying its short term obligations.
- The Quick ratio of LX (1.88) is better than 71.70% 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 9.46%, which is quite good.
- The earnings per share for LX have been decreasing by -14.07% on average. This is quite bad
- LX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.78%.
- LX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.02% yearly.
EPS 1Y (TTM)9.46%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%54.66%
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%-9.78%
3.2 Future
- LX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.97% yearly.
- The Revenue is expected to grow by 1.49% on average over the next years.
EPS Next Y82.99%
EPS Next 2Y30.56%
EPS Next 3Y32.97%
EPS Next 5YN/A
Revenue Next Year-4.79%
Revenue Next 2Y-2.43%
Revenue Next 3Y1.49%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 1.96, the valuation of LX can be described as very cheap.
- Based on the Price/Earnings ratio, LX is valued cheaply inside the industry as 96.23% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of LX to the average of the S&P500 Index (28.39), we can say LX is valued rather cheaply.
- With a Price/Forward Earnings ratio of 1.81, the valuation of LX can be described as very cheap.
- LX's Price/Forward Earnings ratio is rather cheap when compared to the industry. LX is cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, LX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.96 | ||
| Fwd PE | 1.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LX is valued cheaply inside the industry as 81.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.85 |
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.
- A more expensive valuation may be justified as LX's earnings are expected to grow with 32.97% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y30.56%
EPS Next 3Y32.97%
5. Dividend
5.1 Amount
- LX has a Yearly Dividend Yield of 10.10%, which is a nice return.
- The stock price of LX dropped by -40.25% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- LX's Dividend Yield is rather good when compared to the industry average which is at 2.64. LX pays more dividend than 98.11% of the companies in the same industry.
- LX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.1% |
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 2Y30.56%
EPS Next 3Y32.97%
LEXINFINTECH HOLDINGS L-ADR / LX FAQ
What is the fundamental rating for LX stock?
ChartMill assigns a fundamental rating of 5 / 10 to LX.
What is the valuation status for LX stock?
ChartMill assigns a valuation rating of 8 / 10 to LEXINFINTECH HOLDINGS L-ADR (LX). This can be considered as Undervalued.
What is the profitability of LX stock?
LEXINFINTECH HOLDINGS L-ADR (LX) has a profitability rating of 5 / 10.
What is the valuation of LEXINFINTECH HOLDINGS L-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEXINFINTECH HOLDINGS L-ADR (LX) is 1.96 and the Price/Book (PB) ratio is 0.28.
What is the expected EPS growth for LEXINFINTECH HOLDINGS L-ADR (LX) stock?
The Earnings per Share (EPS) of LEXINFINTECH HOLDINGS L-ADR (LX) is expected to grow by 82.99% in the next year.