LENDINGCLUB CORP (LC) Stock Fundamental Analysis
NYSE:LC - New York Stock Exchange, Inc. - US52603A2087 - Common Stock - Currency: USD
Overall LC gets a fundamental rating of 3 out of 10. We evaluated LC against 52 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
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
The Return On Assets of LC (0.48%) is worse than 65.38% of its industry peers.
LC's Return On Equity of 3.72% is on the low side compared to the rest of the industry. LC is outperformed by 65.38% of its industry peers.
LC has a Return On Invested Capital of 0.47%. This is comparable to the rest of the industry: LC outperforms 42.31% of its industry peers.
LC had an Average Return On Invested Capital over the past 3 years of 0.81%. This is significantly below the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.72% | ||
| ROIC | 0.47% |
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 6.16%. This is in the lower half of the industry: LC underperforms 63.46% of its industry peers.
LC's Profit Margin has improved in the last couple of years.
The Operating Margin of LC (7.79%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LC has grown nicely.
The Gross Margin of LC (100.00%) is better than 96.15% of its industry peers.
In the last couple of years the Gross Margin of LC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.79% | ||
| PM (TTM) | 6.16% | ||
| GM | 100% |
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.
LC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LC is higher compared to a year ago.
2.2 Solvency
LC has an Altman-Z score of -0.80. This is a bad value and indicates that LC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.80, LC is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
LC has a Debt/Equity ratio of 6.53. This is a high value indicating a heavy dependency on external financing.
LC has a Debt to Equity ratio of 6.53. This is amonst the worse of the industry: LC underperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.8 |
ROIC/WACC0.09
WACC5.06%
2.3 Liquidity
LC has a Current Ratio of 0.10. This is a bad value and indicates that LC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LC (0.10) is worse than 80.77% of its industry peers.
A Quick Ratio of 0.10 indicates that LC may have some problems paying its short term obligations.
LC's Quick ratio of 0.10 is on the low side compared to the rest of the industry. LC is outperformed by 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
LC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.41%, which is quite impressive.
The Earnings Per Share has been growing by 11.60% on average over the past years. This is quite good.
LC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
LC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.78% yearly.
EPS 1Y (TTM)29.41%
EPS 3Y51.27%
EPS 5Y11.6%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y-1.3%
Revenue growth 5Y-4.78%
Sales Q2Q%20.49%
3.2 Future
The Earnings Per Share is expected to grow by 49.34% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 21.54% on average over the next years. This is a very strong growth
EPS Next Y44.97%
EPS Next 2Y60.33%
EPS Next 3Y49.34%
EPS Next 5YN/A
Revenue Next Year19.52%
Revenue Next 2Y19.32%
Revenue Next 3Y21.54%
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.
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
A Price/Earnings ratio of 23.77 indicates a rather expensive valuation of LC.
LC's Price/Earnings ratio is a bit more expensive when compared to the industry. LC is more expensive than 73.08% of the companies in the same industry.
LC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.04, which indicates a very decent valuation of LC.
LC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, LC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LC is valued cheaply inside the industry as 86.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.41 |
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.
LC's earnings are expected to grow with 49.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)2.05
EPS Next 2Y60.33%
EPS Next 3Y49.34%
5. Dividend
5.1 Amount
No dividends for LC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.46
-0.53 (-4.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners79.27%
Inst Owner Change4.65%
Ins Owners2.95%
Ins Owner Change0.56%
Market Cap1.19B
Analysts83.53
Price Target15.87 (51.72%)
Short Float %4.2%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.58%
Min EPS beat(2)-14.55%
Max EPS beat(2)-8.6%
EPS beat(4)2
Avg EPS beat(4)69.38%
Min EPS beat(4)-14.55%
Max EPS beat(4)221.15%
EPS beat(8)6
Avg EPS beat(8)142.67%
EPS beat(12)9
Avg EPS beat(12)98.21%
EPS beat(16)13
Avg EPS beat(16)134.74%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)2.15%
Revenue beat(4)3
Avg Revenue beat(4)1.59%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)2.91%
Revenue beat(8)5
Avg Revenue beat(8)5.65%
Revenue beat(12)8
Avg Revenue beat(12)4.31%
Revenue beat(16)12
Avg Revenue beat(16)7.38%
PT rev (1m)-3.86%
PT rev (3m)-13.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 9.04 | ||
| P/S | 1.45 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.88 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 2.41 |
EPS(TTM)0.44
EY4.21%
EPS(NY)1.16
Fwd EY11.06%
FCF(TTM)-19.11
FCFYN/A
OCF(TTM)-18.62
OCFYN/A
SpS7.22
BVpS11.95
TBVpS11.22
PEG (NY)0.53
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.72% | ||
| ROCE | 4.54% | ||
| ROIC | 0.47% | ||
| ROICexc | 0.51% | ||
| ROICexgc | 0.52% | ||
| OM | 7.79% | ||
| PM (TTM) | 6.16% | ||
| GM | 100% | ||
| 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
ROICexcg growth 3Y10.19%
ROICexcg 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-Score3
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 71.65 | ||
| Cap/Depr | 92.54% | ||
| Cap/Sales | 6.75% | ||
| Interest Coverage | 0.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | -0.8 |
F-Score3
WACC5.06%
ROIC/WACC0.09
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)29.41%
EPS 3Y51.27%
EPS 5Y11.6%
EPS Q2Q%-9.09%
EPS Next Y44.97%
EPS Next 2Y60.33%
EPS Next 3Y49.34%
EPS Next 5YN/A
Revenue 1Y (TTM)3.06%
Revenue growth 3Y-1.3%
Revenue growth 5Y-4.78%
Sales Q2Q%20.49%
Revenue Next Year19.52%
Revenue Next 2Y19.32%
Revenue Next 3Y21.54%
Revenue Next 5YN/A
EBIT growth 1Y20.49%
EBIT growth 3Y50.21%
EBIT growth 5YN/A
EBIT Next Year-30.66%
EBIT Next 3Y13.04%
EBIT Next 5YN/A
FCF growth 1Y-666.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-573.28%
OCF growth 3YN/A
OCF growth 5YN/A