LENDINGCLUB CORP (LC) Stock Fundamental Analysis
NYSE:LC - US52603A2087 - Common Stock
17.25 USD
+0.44 (+2.62%)
16.86 USD
-0.39 (-2.26%)
Overall LC gets a fundamental rating of 3 out of 10. We evaluated LC against 53 industry peers in the Consumer Finance industry. There are concerns on the financial health of LC while its profitability can be described as average. LC is not valued too expensively and it also shows a decent growth rate.
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.
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 62.26% of the companies in the same industry.
LC has a worse Return On Equity (5.26%) than 62.26% of its industry peers.
LC has a Return On Invested Capital (0.70%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LC is significantly below the industry average of 10.74%.
| 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
LC has a Profit Margin (8.36%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LC has grown nicely.
Looking at the Operating Margin, with a value of 11.16%, LC is in line with its industry, outperforming 52.83% of the companies in the same industry.
LC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 100.00%, LC belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
LC's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for LC has been increased compared to 1 year ago.
LC has more shares outstanding than it did 5 years ago.
LC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.75, we must say that LC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.75, LC is not doing good in the industry: 71.70% of the companies in the same industry are doing better.
LC has a Debt/Equity ratio of 6.54. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LC (6.54) is worse than 79.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.75 |
ROIC/WACC0.12
WACC5.87%
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 77.36% 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.
With a Quick ratio value of 0.08, LC is not doing good in the industry: 77.36% of the companies in the same industry are doing better.
| 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.
LC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.60% yearly.
The Revenue has grown by 17.35% in the past year. This is quite good.
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 Y122.56%
EPS Next 2Y73.94%
EPS Next 3Y62.51%
EPS Next 5YN/A
Revenue Next Year26.1%
Revenue Next 2Y20.88%
Revenue Next 3Y19.82%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.95, LC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of LC indicates a slightly more expensive valuation: LC is more expensive than 75.47% of the companies listed in the same industry.
LC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.17.
With a Price/Forward Earnings ratio of 12.67, LC is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as LC.
LC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LC is valued a bit cheaper than the industry average as 75.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.61 |
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 62.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)2.32
EPS Next 2Y73.94%
EPS Next 3Y62.51%
5. Dividend
5.1 Amount
LC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.25
+0.44 (+2.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners79.94%
Inst Owner Change1.99%
Ins Owners2.92%
Ins Owner Change0.56%
Market Cap1.98B
Analysts83.16
Price Target18.42 (6.78%)
Short Float %5.11%
Short Ratio3.11
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)16.49%
PT rev (3m)11.54%
EPS NQ rev (1m)58.83%
EPS NQ rev (3m)31.66%
EPS NY rev (1m)48.98%
EPS NY rev (3m)53.52%
Revenue NQ rev (1m)6.39%
Revenue NQ rev (3m)4.58%
Revenue NY rev (1m)5.15%
Revenue NY rev (3m)5.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 12.67 | ||
| P/S | 2.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.41 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)0.64
EY3.71%
EPS(NY)1.36
Fwd EY7.89%
FCF(TTM)-17.79
FCFYN/A
OCF(TTM)-16.62
OCFYN/A
SpS7.72
BVpS12.25
TBVpS11.53
PEG (NY)0.22
PEG (5Y)2.32
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
WACC5.87%
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 Y122.56%
EPS Next 2Y73.94%
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 Year26.1%
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 Year55.27%
EBIT Next 3Y12.22%
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