LENDINGCLUB CORP (LC) Stock Fundamental Analysis
NYSE:LC - New York Stock Exchange, Inc. - US52603A2087 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to LC. LC was compared to 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
LC had positive earnings in the past year.
In the past year LC has reported a negative cash flow from operations.
LC had positive earnings in 4 of the past 5 years.
In multiple years LC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.48%, LC is not doing good in the industry: 64.15% of the companies in the same industry are doing better.
LC's Return On Equity of 3.72% is on the low side compared to the rest of the industry. LC is outperformed by 64.15% of its industry peers.
LC has a Return On Invested Capital (0.47%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LC is significantly below the industry average of 10.31%.
| 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 worse Profit Margin (6.16%) than 62.26% of its industry peers.
In the last couple of years the Profit Margin of LC has grown nicely.
LC has a Operating Margin (7.79%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LC has grown nicely.
LC's Gross Margin of 100.00% is amongst the best of the industry. LC outperforms 96.23% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LC is destroying value.
Compared to 1 year ago, LC has more shares outstanding
LC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LC has a worse debt to assets ratio.
2.2 Solvency
LC has an Altman-Z score of -0.78. This is a bad value and indicates that LC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.78, LC is doing worse than 69.81% of the companies in the same industry.
A Debt/Equity ratio of 6.53 is on the high side and indicates that LC has dependencies on debt financing.
LC has a Debt to Equity ratio of 6.53. This is in the lower half of the industry: LC underperforms 79.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.78 |
ROIC/WACC0.09
WACC5.35%
2.3 Liquidity
A Current Ratio of 0.10 indicates that LC may have some problems paying its short term obligations.
LC has a worse Current ratio (0.10) than 79.25% of its industry peers.
LC has a Quick 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.
LC has a Quick ratio of 0.10. This is in the lower half of the industry: LC underperforms 79.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.41% over the past year.
LC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.60% yearly.
LC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
The Revenue has been decreasing by -4.78% on average over the past years.
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
LC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.30% yearly.
Based on estimates for the next years, LC will show a very strong growth in Revenue. The Revenue will grow by 21.14% on average per year.
EPS Next Y49.4%
EPS Next 2Y61.99%
EPS Next 3Y51.3%
EPS Next 5YN/A
Revenue Next Year19.93%
Revenue Next 2Y19.53%
Revenue Next 3Y21.14%
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 28.86, LC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, LC is valued a bit more expensive than the industry average as 75.47% of the companies are valued more cheaply.
LC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 10.75, the valuation of LC can be described as reasonable.
LC's Price/Forward Earnings ratio is in line with the industry average.
LC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.86 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LC is valued cheaper than 83.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.46 |
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 LC's earnings are expected to grow with 51.30% in the coming years.
PEG (NY)0.58
PEG (5Y)2.49
EPS Next 2Y61.99%
EPS Next 3Y51.3%
5. Dividend
5.1 Amount
LC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.7
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners79.27%
Inst Owner Change0%
Ins Owners2.95%
Ins Owner Change0.56%
Market Cap1.45B
Analysts84.44
Price Target15.87 (24.96%)
Short Float %3.5%
Short Ratio2.86
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)0%
PT rev (3m)-11.63%
EPS NQ rev (1m)4.14%
EPS NQ rev (3m)-15.8%
EPS NY rev (1m)3.05%
EPS NY rev (3m)-15.1%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.86 | ||
| Fwd PE | 10.75 | ||
| P/S | 1.76 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.06 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 4.46 |
EPS(TTM)0.44
EY3.46%
EPS(NY)1.18
Fwd EY9.3%
FCF(TTM)-19.11
FCFYN/A
OCF(TTM)-18.62
OCFYN/A
SpS7.22
BVpS11.95
TBVpS11.22
PEG (NY)0.58
PEG (5Y)2.49
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 | -0.78 |
F-Score3
WACC5.35%
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 Y49.4%
EPS Next 2Y61.99%
EPS Next 3Y51.3%
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 Year19.93%
Revenue Next 2Y19.53%
Revenue Next 3Y21.14%
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