LEXINFINTECH HOLDINGS L-ADR (LX) Stock Fundamental Analysis
NASDAQ:LX - US5288771034 - ADR
6.32 USD
+0.07 (+1.12%)
6.32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LX. LX was compared to 53 industry peers in the Consumer Finance industry. LX has only an average score on both its financial health and profitability. LX may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, LX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
LX had positive earnings in the past year.
Each year in the past 5 years LX has been profitable.
LX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LX has a Return On Assets of 5.87%. This is in the better half of the industry: LX outperforms 79.25% of its industry peers.
LX's Return On Equity of 11.86% is in line compared to the rest of the industry. LX outperforms 56.60% of its industry peers.
LX's Return On Invested Capital of 13.98% is amongst the best of the industry. LX outperforms 84.91% of its industry peers.
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 10.74%.
The last Return On Invested Capital (13.98%) for LX is above the 3 year average (10.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.86% | ||
| ROIC | 13.98% |
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 9.45%. This is comparable to the rest of the industry: LX outperforms 54.72% of its industry peers.
In the last couple of years the Profit Margin of LX has declined.
With a decent Operating Margin value of 15.65%, LX is doing good in the industry, outperforming 62.26% of the companies in the same industry.
LX's Operating Margin has declined in the last couple of years.
LX's Gross Margin of 35.89% is on the low side compared to the rest of the industry. LX is outperformed by 60.38% of its industry peers.
LX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.65% | ||
| PM (TTM) | 9.45% | ||
| GM | 35.89% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LX is creating value.
The number of shares outstanding for LX has been increased compared to 1 year ago.
The number of shares outstanding for LX has been reduced compared to 5 years ago.
LX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.28 indicates that LX is not a great score, but indicates only limited risk for bankruptcy at the moment.
LX has a better Altman-Z score (2.28) than 71.70% of its industry peers.
LX has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.12, LX belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.28 |
ROIC/WACC4.77
WACC2.93%
2.3 Liquidity
LX has a Current Ratio of 1.85. This is a normal value and indicates that LX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.85, LX is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
LX has a Quick Ratio of 1.85. This is a normal value and indicates that LX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LX (1.85) is better than 71.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.46% over the past year.
The earnings per share for LX have been decreasing by -14.07% on average. This is quite bad
The Revenue has grown by 8.78% in the past year. This is quite good.
Measured over the past years, LX shows a small growth in Revenue. The Revenue has been growing by 6.02% on average per year.
EPS 1Y (TTM)9.46%
EPS 3Y-19.42%
EPS 5Y-14.07%
EPS Q2Q%112.12%
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%0.72%
3.2 Future
The Earnings Per Share is expected to grow by 45.71% on average over the next years. This is a very strong growth
LX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.75% yearly.
EPS Next Y103.48%
EPS Next 2Y65.1%
EPS Next 3Y45.71%
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y12.43%
Revenue Next 3Y10.75%
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
LX is valuated cheaply with a Price/Earnings ratio of 4.94.
LX's Price/Earnings ratio is rather cheap when compared to the industry. LX is cheaper than 86.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of LX to the average of the S&P500 Index (27.08), we can say LX is valued rather cheaply.
LX is valuated cheaply with a Price/Forward Earnings ratio of 2.55.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LX indicates a rather cheap valuation: LX is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. LX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 2.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LX is valued cheaper than 81.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.5 |
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.
A more expensive valuation may be justified as LX's earnings are expected to grow with 45.71% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y65.1%
EPS Next 3Y45.71%
5. Dividend
5.1 Amount
LX has a Yearly Dividend Yield of 4.68%, which is a nice return.
Compared to an average industry Dividend Yield of 4.24, LX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, LX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
5.2 History
LX has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y65.1%
EPS Next 3Y45.71%
6.32
+0.07 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners59.66%
Inst Owner Change-7.56%
Ins Owners3.32%
Ins Owner ChangeN/A
Market Cap1.04B
Analysts87.14
Price Target11.76 (86.08%)
Short Float %10.39%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
Yearly Dividend0.15
Dividend Growth(5Y)N/A
DPN/A
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)-3.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.72%
EPS NY rev (3m)5.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.44%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 2.55 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.66 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 5.5 |
EPS(TTM)1.28
EY20.25%
EPS(NY)2.48
Fwd EY39.26%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS12
BVpS9.56
TBVpS8.83
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.86% | ||
| ROCE | 17.3% | ||
| ROIC | 13.98% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 14.99% | ||
| OM | 15.65% | ||
| PM (TTM) | 9.45% | ||
| GM | 35.89% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 2.28 |
F-ScoreN/A
WACC2.93%
ROIC/WACC4.77
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%112.12%
EPS Next Y103.48%
EPS Next 2Y65.1%
EPS Next 3Y45.71%
EPS Next 5YN/A
Revenue 1Y (TTM)8.78%
Revenue growth 3Y7.67%
Revenue growth 5Y6.02%
Sales Q2Q%0.72%
Revenue Next Year4.21%
Revenue Next 2Y12.43%
Revenue Next 3Y10.75%
Revenue Next 5YN/A
EBIT growth 1Y0.19%
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