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Lexinfintech Holdings Ltd (LX)
NASDAQ:LX
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Lexinfintech Holdings
(NASDAQ:LX)
Rating:74Outperform
Price Target:
$8.50
▲(10.82%Upside)
Lexinfintech Holdings (LX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.20B
Dividend Yield2.94%
Average Volume (3M)2.18M
Price to Earnings (P/E)6.7
Beta (1Y)1.58
Revenue Growth7.53%
EPS Growth37.86%
CountryUS
Employees4,667
SectorFinancial
Sector Strength80
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding132,592,390
10 Day Avg. Volume2,124,745
30 Day Avg. Volume2,181,493
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.30
Price to Sales (P/S)0.00
P/FCF Ratio-51.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.60Price Target Upside77.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Lexinfintech Holdings Business Overview & Revenue Model
Company DescriptionLexinFintech Holdings Ltd., through its subsidiaries, offers online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as provides online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was incorporated in 2013 and is headquartered in Shenzhen, the People's Republic of China.
How the Company Makes MoneyLexinfintech Holdings generates revenue primarily through its consumer finance services. The company earns money by providing installment loans and personal loans to its users, and it charges interest on these loans. Additionally, Lexinfintech facilitates transactions between consumers and financial institutions, earning service fees and commissions. The company also partners with various merchants and e-commerce platforms, integrating its financial services into these ecosystems, which allows it to earn additional fees. Lexinfintech's use of data analytics and technology enhances customer acquisition and retention, contributing significantly to its revenue streams.
Lexinfintech Holdings Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| % Change Since: -11.53%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant profit growth, improved risk management, and strategic business expansions, particularly in e-commerce and overseas operations. However, there were notable declines in lending-related and e-commerce platform revenues due to strategic shifts and market conditions.Q1-2025 Updates
Positive Updates
Record GAAP Net Profit
GAAP net profit reached CNY 430 million, a record high in 13 quarters, representing quarter-over-quarter growth of 18.6% and year-over-year growth of 113%.
E-commerce GMV Growth
Approval rate of installment applications increased significantly, driving e-commerce GMV to increase by 16.2%.
Overseas Business Profitability
Customer acquisition costs decreased by 19% quarter-over-quarter, and the overseas business achieved profitability.
Improved Net Income Margin
Net income margin increased from 9.9% to 13.9%.
Enhanced Risk Management
Day 1 delinquency ratio decreased by about 11%, and 90 days delinquency ratio decreased by 9% quarter-over-quarter.
Increased Dividend Payout Ratio
The Board approved increasing the dividend payout ratio to 30% of net profit, effective from the second half of 2025.
Negative Updates
Decline in Lending-Related Revenue
Total revenue from lending-related business decreased by 15% quarter-over-quarter due to lower APR, increased early payoffs, and GMV volume shift to the capital-light model.
Installment E-commerce Revenue Decline
Installment e-commerce platform service income decreased by 16.4%, attributed to structural volume mix changes.
Company Guidance
During the Lexin First Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance updates. Lexin reported a GAAP net profit of CNY 430 million, marking a record high in 13 quarters, with a quarter-over-quarter growth of 18.6% and a year-over-year increase of 113%. The net income margin rose to 13.9% from 9.9% in the previous quarter, and the net profit take rate increased to 1.58% from 1.31%. The company's installment e-commerce business achieved a 16.2% increase in GMV, while the customer acquisition costs for their overseas business decreased by 19% quarter-over-quarter. Lexin reaffirmed its full-year 2025 profit guidance, anticipating substantial year-over-year growth. Additionally, the company announced an increase in the dividend payout ratio to 30% of net profit, effective from the second half of 2025.Lexinfintech Holdings Financial Statement Overview
Summary
Lexinfintech Holdings displays strong revenue growth and stable profitability, supported by an improving capital structure. However, challenges in cash flow generation and high liabilities necessitate strategic focus to maintain financial health and support sustainable growth.Income Statement
Lexinfintech Holdings showed strong revenue growth with a 8.8% increase from 2023 to 2024. The gross profit margin improved to approximately 40.4%, reflecting efficient cost management. Net profit margin remained healthy at 7.7%, indicating consistent profitability. However, the EBIT margin of 21.2% and EBITDA margin of 16.8% suggest room for improvement in operational efficiency and cost control.78
Positive
Balance Sheet
The company's debt-to-equity ratio improved to 0.49 in 2024, displaying a stronger capital structure. Return on equity (ROE) was solid at 10.2%, showing effective use of equity for generating returns. The equity ratio improved to 48.3%, suggesting a balanced asset financing strategy. However, the high level of total liabilities remains a potential risk factor.72
Positive
Cash Flow
Lexinfintech Holdings saw a decline in free cash flow from 2023 to 2024, indicating challenges in converting profits to cash. The absence of operating and free cash flow metrics for 2024 raises concerns about cash management. The company must focus on improving cash flow generation to support future growth and reduce financial risk.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.20B | 13.06B | 9.87B | 11.38B | 11.65B |
| Gross Profit | 5.74B | 4.51B | 3.03B | 5.75B | 3.63B |
| EBITDA | 2.39B | 1.52B | 1.23B | 2.98B | 1.53B |
| Net Income | 1.10B | 1.07B | 819.75M | 2.33B | 594.98M |
Balance Sheet | |||||
| Total Assets | 22.24B | 23.14B | 22.77B | 21.03B | 20.35B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 2.82B | 1.49B | 2.66B | 1.56B |
| Total Debt | 5.27B | 5.51B | 9.10B | 7.48B | 9.26B |
| Total Liabilities | 11.50B | 13.43B | 14.12B | 12.96B | 14.81B |
| Stockholders Equity | 10.74B | 9.71B | 8.65B | 8.03B | 5.49B |
Cash Flow | |||||
| Free Cash Flow | 834.40M | 2.56B | -49.97M | 2.55B | -297.59M |
| Operating Cash Flow | 1.08B | 2.79B | 98.84M | 2.67B | -211.02M |
| Investing Cash Flow | -904.88M | 2.33B | -2.41B | 414.62M | -2.14B |
| Financing Cash Flow | -387.28M | -3.85B | 1.11B | -1.78B | 1.23B |
Lexinfintech Holdings Technical Analysis
Positive
7.67
Price Trends
7.72
Negative
8.31
Negative
6.25
Positive
Market Momentum
-0.16
Negative
53.45
Neutral
75.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Positive. The current price of 7.67 is above the 20-day moving average (MA) of 7.25, below the 50-day MA of 7.72, and above the 200-day MA of 6.25, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 75.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LX.
Lexinfintech Holdings Risk Analysis
Lexinfintech Holdings disclosed 106 risk factors in its most recent earnings report. Lexinfintech Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lexinfintech Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.48B | 7.14 | 17.91% | 2.83% | 5.13% | 25.93% | |
77 Outperform | $5.33B | 54.12 | 137.28% | ― | 91.69% | 702.31% | |
74 Outperform | $1.20B | 6.73 | 12.60% | 2.94% | 7.53% | 37.86% | |
73 Outperform | $517.57M | 2.84 | 14.69% | 3.63% | 12.45% | -36.64% | |
67 Neutral | $16.47B | 11.30 | 9.71% | 3.94% | 11.97% | -10.51% | |
64 Neutral | $472.26M | 11.99 | 2.77% | ― | 0.54% | ― | |
57 Neutral | $1.33B | 26.14 | 3.86% | ― | 5.72% | 31.82% |
* Financial Sector Average
Performance Comparison
LX
Lexinfintech Holdings
7.67
6.10
388.54%
LC
LendingClub
11.62
3.43
41.88%
YRD
Yiren Digital
5.99
1.75
41.27%
QD
Qudian
2.86
0.99
52.94%
FINV
FinVolution Group
9.77
5.29
118.08%
SEZL
Sezzle Inc.
154.79
140.13
955.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.