LEXINFINTECH HOLDINGS L-ADR (LX) Stock Fundamental Analysis
NASDAQ:LX - Nasdaq - US5288771034 - ADR - Currency: USD
Overall LX gets a fundamental rating of 6 out of 10. We evaluated LX 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 could make LX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year LX was profitable.
LX had a positive operating cash flow in the past year.
In the past 5 years LX has always been profitable.
LX had a positive operating cash flow in 4 of the past 5 years.
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.
LX's Return On Invested Capital of 14.62% is amongst the best of the industry. LX outperforms 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LX is in line with the industry average of 10.31%.
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 of 7.75%. This is comparable to the rest of the industry: LX outperforms 46.15% of its industry peers.
In the last couple of years the Profit Margin of LX has declined.
The Operating Margin of LX (16.10%) is better than 61.54% of its industry peers.
In the last couple of years the Operating Margin of LX has declined.
LX has a Gross Margin of 35.39%. This is comparable to the rest of the industry: LX outperforms 40.38% of its industry peers.
In the last couple of years the Gross Margin of LX has declined.
| 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.
Compared to 5 years ago, LX has less shares outstanding
The debt/assets ratio for LX has been reduced compared to a year ago.
2.2 Solvency
LX has an Altman-Z score of 2.36. 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 (2.36) is better than 75.00% of its industry peers.
The Debt to FCF ratio of LX is 6.26, which is on the high side as it means it would take LX, 6.26 years of fcf income to pay off all of its debts.
LX has a Debt to FCF ratio (6.26) which is comparable to the rest of the industry.
LX has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
LX's Debt to Equity ratio of 0.17 is amongst the best of the industry. LX outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.36 |
ROIC/WACC4.55
WACC3.21%
2.3 Liquidity
A Current Ratio of 1.86 indicates that LX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.86, LX is in the better half of 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.
The Quick ratio of LX (1.86) is better than 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.
LX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.07% yearly.
LX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.78%.
LX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.02% yearly.
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
Based on estimates for the next years, LX will show a very strong growth in Earnings Per Share. The EPS will grow by 47.97% on average per year.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y104.96%
EPS Next 2Y69.42%
EPS Next 3Y47.97%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y4.66%
Revenue Next 3Y5.45%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.59, which indicates a rather cheap valuation of LX.
Based on the Price/Earnings ratio, LX is valued a bit cheaper than 78.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of LX to the average of the S&P500 Index (27.21), we can say LX is valued rather cheaply.
The Price/Forward Earnings ratio is 2.71, which 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 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LX to the average of the S&P500 Index (21.70), we can say LX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 2.71 |
4.2 Price Multiples
LX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LX is cheaper than 78.85% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
LX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LX's earnings are expected to grow with 47.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y69.42%
EPS Next 3Y47.97%
5. Dividend
5.1 Amount
LX has a Yearly Dividend Yield of 2.03%. Purely for dividend investing, there may be better candidates out there.
LX's Dividend Yield is a higher than the industry average which is at 3.66.
LX's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 2Y69.42%
EPS Next 3Y47.97%
7.05
-0.16 (-2.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners61.22%
Inst Owner Change41.08%
Ins Owners3.32%
Ins Owner ChangeN/A
Market Cap1.16B
Analysts87.14
Price Target11.76 (66.81%)
Short Float %5.59%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)-3.08%
PT rev (3m)79.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)6.3%
EPS NY rev (3m)23.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.28%
Revenue NY rev (3m)-4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 2.71 | ||
| P/S | 0.58 | ||
| P/FCF | 9.95 | ||
| P/OCF | 7.68 | ||
| P/B | 0.77 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)1.07
EY15.18%
EPS(NY)2.6
Fwd EY36.89%
FCF(TTM)0.71
FCFY10.05%
OCF(TTM)0.92
OCFY13.02%
SpS12.06
BVpS9.12
TBVpS8.38
PEG (NY)0.06
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 | 2.36 |
F-Score6
WACC3.21%
ROIC/WACC4.55
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 Y104.96%
EPS Next 2Y69.42%
EPS Next 3Y47.97%
EPS Next 5YN/A
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%-5.28%
Revenue Next Year0.75%
Revenue Next 2Y4.66%
Revenue Next 3Y5.45%
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