LEXINFINTECH HOLDINGS L-ADR (LX) Stock Fundamental Analysis
NASDAQ:LX - Nasdaq - US5288771034 - ADR - Currency: USD
LX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 industry peers in the Consumer Finance industry. LX has only an average score on both its financial health and profitability. LX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make LX suitable for value investing!
1. Profitability
1.1 Basic Checks
LX had positive earnings in the past year.
LX had a positive operating cash flow in the past year.
Each year in the past 5 years LX has been profitable.
Of the past 5 years LX 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.95%, LX is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
With a Return On Equity value of 10.25%, LX perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.62%, LX belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
LX had an Average Return On Invested Capital over the past 3 years of 10.13%. This is in line with the industry average of 10.35%.
The last Return On Invested Capital (14.62%) for LX is above the 3 year average (10.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 10.25% | ||
| ROIC | 14.62% |
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 (7.75%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LX has declined.
With a decent Operating Margin value of 16.10%, LX is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of LX has declined.
The Gross Margin of LX (35.39%) is comparable to the rest of the industry.
LX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.1% | ||
| PM (TTM) | 7.75% | ||
| GM | 35.39% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LX is creating value.
The number of shares outstanding for LX has been increased compared to 1 year ago.
LX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LX has an improved debt to assets ratio.
2.2 Solvency
LX has an Altman-Z score of 2.37. 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.
The Altman-Z score of LX (2.37) is better than 75.00% of its industry peers.
LX has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as LX would need 6.26 years to pay back of all of its debts.
LX's Debt to FCF ratio of 6.26 is in line compared to the rest of the industry. LX outperforms 55.77% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that LX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.17, LX belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.37 |
ROIC/WACC2.95
WACC4.95%
2.3 Liquidity
A Current Ratio of 1.86 indicates that LX should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.86, LX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 1.86 indicates that LX should not have too much problems paying its short term obligations.
LX's Quick ratio of 1.86 is fine compared to the rest of the industry. LX outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.46% over the past year.
Measured over the past years, LX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.07% on average per year.
Looking at the last year, LX shows a quite strong growth in Revenue. The Revenue has grown by 8.78% in the last year.
The Revenue has been growing slightly by 6.02% on average over the past years.
EPS 1Y (TTM)9.46%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%93.01%
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%-5.28%
3.2 Future
LX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.83% yearly.
Based on estimates for the next years, LX will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y92.81%
EPS Next 2Y63.16%
EPS Next 3Y43.83%
EPS Next 5YN/A
Revenue Next Year7.5%
Revenue Next 2Y6.77%
Revenue Next 3Y6.11%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LX is valuated cheaply with a Price/Earnings ratio of 7.04.
Based on the Price/Earnings ratio, LX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LX to the average of the S&P500 Index (26.31), we can say LX is valued rather cheaply.
A Price/Forward Earnings ratio of 3.10 indicates a rather cheap valuation of LX.
LX's Price/Forward Earnings ratio is rather cheap when compared to the industry. LX is cheaper than 94.23% of the companies in the same industry.
LX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.04 | ||
| Fwd PE | 3.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LX indicates a rather cheap valuation: LX is cheaper than 82.69% of the companies listed in the same industry.
LX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.57 | ||
| EV/EBITDA | 4.83 |
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 43.83% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y63.16%
EPS Next 3Y43.83%
5. Dividend
5.1 Amount
LX has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.39, LX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, LX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
LX has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LX pays out 14.94% of its income as dividend. This is a sustainable payout ratio.
DP14.94%
EPS Next 2Y63.16%
EPS Next 3Y43.83%
7.46
+0.04 (+0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners46.08%
Inst Owner Change41.08%
Ins Owners3.12%
Ins Owner ChangeN/A
Market Cap1.23B
Analysts87.14
Price Target12.14 (62.73%)
Short Float %5.37%
Short Ratio0.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend0.15
Dividend Growth(5Y)N/A
DP14.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)84.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)16.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.04 | ||
| Fwd PE | 3.1 | ||
| P/S | 0.62 | ||
| P/FCF | 10.57 | ||
| P/OCF | 8.15 | ||
| P/B | 0.82 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)1.06
EY14.21%
EPS(NY)2.4
Fwd EY32.23%
FCF(TTM)0.71
FCFY9.46%
OCF(TTM)0.92
OCFY12.27%
SpS12.02
BVpS9.09
TBVpS8.36
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 10.25% | ||
| ROCE | 18.09% | ||
| ROIC | 14.62% | ||
| ROICexc | 17.93% | ||
| ROICexgc | 19.57% | ||
| OM | 16.1% | ||
| PM (TTM) | 7.75% | ||
| GM | 35.39% | ||
| FCFM | 5.87% |
ROA(3y)4.38%
ROA(5y)5.44%
ROE(3y)10.23%
ROE(5y)14.12%
ROIC(3y)10.13%
ROIC(5y)12.29%
ROICexc(3y)12.87%
ROICexc(5y)15.39%
ROICexgc(3y)14.21%
ROICexgc(5y)17.09%
ROCE(3y)12.91%
ROCE(5y)16.85%
ROICexcg growth 3Y-10.76%
ROICexcg growth 5Y-2.98%
ROICexc growth 3Y-10.33%
ROICexc growth 5Y-4.66%
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%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 224.54% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 50.62 | ||
| Cash Conversion | 45.13% | ||
| Profit Quality | 75.82% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 2.37 |
F-Score6
WACC4.95%
ROIC/WACC2.95
Cap/Depr(3y)199.68%
Cap/Depr(5y)179%
Cap/Sales(3y)1.67%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.46%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%93.01%
EPS Next Y92.81%
EPS Next 2Y63.16%
EPS Next 3Y43.83%
EPS Next 5YN/A
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%-5.28%
Revenue Next Year7.5%
Revenue Next 2Y6.77%
Revenue Next 3Y6.11%
Revenue Next 5YN/A
EBIT growth 1Y21.67%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.74%
EBIT Next Year55.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-67.37%
FCF growth 3Y-31.05%
FCF growth 5YN/A
OCF growth 1Y-61.2%
OCF growth 3Y-25.99%
OCF growth 5YN/A