LENDINGCLUB CORP (LC) Stock Fundamental Analysis
USA - NYSE:LC - US52603A2087 - Common Stock
17.62 USD
-0.02 (-0.11%)
17.4 USD
-0.22 (-1.25%)
Taking everything into account, LC scores 3 out of 10 in our fundamental rating. LC was compared to 55 industry peers in the Consumer Finance industry. While LC is still in line with the averages on profitability rating, there are concerns on its financial health. LC has a decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 0.69%, LC is doing worse than 61.82% of the companies in the same industry.
The Return On Equity of LC (5.26%) is worse than 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.70%, LC is in line with its industry, outperforming 45.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LC is significantly below the industry average of 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 5.26% | ||
| ROIC | 0.7% |
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
The Profit Margin of LC (8.36%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LC has grown nicely.
The Operating Margin of LC (11.16%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LC has grown nicely.
Looking at the Gross Margin, with a value of 100.00%, LC belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
In the last couple of years the Gross Margin of LC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.16% | ||
| PM (TTM) | 8.36% | ||
| 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
LC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LC has more shares outstanding
Compared to 5 years ago, LC has more shares outstanding
The debt/assets ratio for LC is higher compared to a year ago.
2.2 Solvency
LC has an Altman-Z score of -0.75. This is a bad value and indicates that LC is not financially healthy and even has some risk of bankruptcy.
LC's Altman-Z score of -0.75 is on the low side compared to the rest of the industry. LC is outperformed by 67.27% of its industry peers.
A Debt/Equity ratio of 6.54 is on the high side and indicates that LC has dependencies on debt financing.
With a Debt to Equity ratio value of 6.54, LC is not doing good in the industry: 78.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.75 |
ROIC/WACC0.12
WACC5.89%
2.3 Liquidity
A Current Ratio of 0.08 indicates that LC may have some problems paying its short term obligations.
LC has a worse Current ratio (0.08) than 76.36% of its industry peers.
LC has a Quick Ratio of 0.08. 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 worse Quick ratio (0.08) than 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.42% over the past year.
The Earnings Per Share has been growing by 11.60% on average over the past years. This is quite good.
Looking at the last year, LC shows a quite strong growth in Revenue. The Revenue has grown by 17.35% in the last year.
LC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.78% yearly.
EPS 1Y (TTM)68.42%
EPS 3Y51.27%
EPS 5Y11.6%
EPS Q2Q%153.85%
Revenue 1Y (TTM)17.35%
Revenue growth 3Y-1.3%
Revenue growth 5Y-4.78%
Sales Q2Q%32.68%
3.2 Future
The Earnings Per Share is expected to grow by 62.51% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.82% on average over the next years. This is quite good.
EPS Next Y135.05%
EPS Next 2Y78.66%
EPS Next 3Y62.51%
EPS Next 5YN/A
Revenue Next Year26.48%
Revenue Next 2Y20.88%
Revenue Next 3Y19.82%
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
A Price/Earnings ratio of 27.53 indicates a quite expensive valuation of LC.
Based on the Price/Earnings ratio, LC is valued a bit more expensive than the industry average as 74.55% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.38, LC is valued at the same level.
The Price/Forward Earnings ratio is 12.27, which indicates a correct valuation of LC.
LC's Price/Forward Earnings is on the same level as the industry average.
LC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.53 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
76.36% of the companies in the same industry are more expensive than LC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.87 |
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.
LC's earnings are expected to grow with 62.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)2.37
EPS Next 2Y78.66%
EPS Next 3Y62.51%
5. Dividend
5.1 Amount
LC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.62
-0.02 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners80.78%
Inst Owner Change1.99%
Ins Owners2.88%
Ins Owner Change0.51%
Market Cap2.02B
Analysts83.16
Price Target18.42 (4.54%)
Short Float %4.93%
Short Ratio2.95
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)1
Avg EPS beat(2)50.2%
Min EPS beat(2)-8.6%
Max EPS beat(2)108.99%
EPS beat(4)2
Avg EPS beat(4)41.34%
Min EPS beat(4)-14.55%
Max EPS beat(4)108.99%
EPS beat(8)6
Avg EPS beat(8)142.93%
EPS beat(12)9
Avg EPS beat(12)106.52%
EPS beat(16)13
Avg EPS beat(16)134.03%
Revenue beat(2)1
Avg Revenue beat(2)2.33%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)6.02%
Revenue beat(4)3
Avg Revenue beat(4)2.43%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)6.02%
Revenue beat(8)6
Avg Revenue beat(8)6.5%
Revenue beat(12)8
Avg Revenue beat(12)4.2%
Revenue beat(16)12
Avg Revenue beat(16)4.79%
PT rev (1m)1.25%
PT rev (3m)16.02%
EPS NQ rev (1m)6.74%
EPS NQ rev (3m)76.1%
EPS NY rev (1m)5.61%
EPS NY rev (3m)62.13%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)8.24%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.53 | ||
| Fwd PE | 12.27 | ||
| P/S | 2.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.44 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)0.64
EY3.63%
EPS(NY)1.44
Fwd EY8.15%
FCF(TTM)-17.79
FCFYN/A
OCF(TTM)-16.62
OCFYN/A
SpS7.72
BVpS12.25
TBVpS11.53
PEG (NY)0.2
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 5.26% | ||
| ROCE | 7.03% | ||
| ROIC | 0.7% | ||
| ROICexc | 0.75% | ||
| ROICexgc | 0.77% | ||
| OM | 11.16% | ||
| PM (TTM) | 8.36% | ||
| 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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 57.04 | ||
| Cap/Depr | 213.61% | ||
| Cap/Sales | 15.07% | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 | ||
| Altman-Z | -0.75 |
F-Score4
WACC5.89%
ROIC/WACC0.12
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)68.42%
EPS 3Y51.27%
EPS 5Y11.6%
EPS Q2Q%153.85%
EPS Next Y135.05%
EPS Next 2Y78.66%
EPS Next 3Y62.51%
EPS Next 5YN/A
Revenue 1Y (TTM)17.35%
Revenue growth 3Y-1.3%
Revenue growth 5Y-4.78%
Sales Q2Q%32.68%
Revenue Next Year26.48%
Revenue Next 2Y20.88%
Revenue Next 3Y19.82%
Revenue Next 5YN/A
EBIT growth 1Y70.53%
EBIT growth 3Y50.21%
EBIT growth 5YN/A
EBIT Next Year72.16%
EBIT Next 3Y13.62%
EBIT Next 5YN/A
FCF growth 1Y-2095.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1244.3%
OCF growth 3YN/A
OCF growth 5YN/A