Credit Services
Updated on September 4, 2024
STOCKSTOBUYNOW.WIKI
offers a range of financial services, including loans, banking, investment management, and insurance.
SoFi Technologies, Inc., a San Francisco-based fintech company,
The initial goal of founding this company was straightforward yet ambitious:
to tackle the burdensome student loan crisis in the U.S. by offering more affordable and flexible refinancing options.
Over the years, SoFi has evolved from its roots in student loan refinancing into a multifaceted financial powerhouse.
• 8 Limited;
• Galileo;
• Golden Pacific;
• Technisys;
• Wyndham.
The company expanded into personal loans, mortgages, and credit cards, becoming a comprehensive financial services provider.
1. Lending;
2. Technology Platform;
3. Financial Services.
1.57
2.12
0.98
0.56
2020
2021
2022
2023
2019
0.44
-0.3
-0.32
-0.48
-0.22
-0.24
This appeals to millennials and Gen Z, who favor digital-first financial solutions over traditional banking.
The rise of digital banking and the increasing adoption of mobile financial services play to SoFi's strengths.
7.54
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Q3 2022
6.95
6.24
5.65
5.22
4.74
5Y:
-40.84%
ALL:
-40.84%
Despite that, SoFi's stock price has declined since inception, reflecting the rapidly evolving fintech industry's opportunities and challenges.
1. Business, financial and operational risks;
2. market and interest rate risks;
3. strategic and new products risks;
4. credit market risks;
5. funding and liquidity risks; etc.
SoFi’s leadership is spearheaded by CEO Anthony Noto, a former COO of Twitter and a Goldman Sachs managing director.
The company's solid corporate governance features a board with expertise in technology, finance, and regulatory affairs.
1.42
3.08
0.49
0.87
2020
2021
2022
2023
0
0
0
0
The team increased cash reserves, and the mrq debt-to-equity ratio is now at 0.54. However, it did nothing to retain some earnings.
40.42
2020
2021
2022
2023
40
526
0
0
The company pays dividends to Series 1 preferred shareholders and has even purchased common stock at times.
40.42
40.42
40.53
-5.74
2020
2021
2022
2023
-2.62
-5.27
-1.68
-1
As for efficiency, it's hard to judge because both ROE and ROA are negative due to the company's losses.
-6.15
-11.05
0
trailing
47.54
P/FCF:
Now let's check if SoFi's stock is undervalued by examining its price-to-free cash flow ratio, which is above the credit services industry average of 12.44.
The second is the price-to-sales ratio, which is currently a bit lower than the industry average of 4.32 but exceeds the typical value investor threshold of 2.
P/s
2.35
trailing
1.35
The third metric, SoFi's price-to-book ratio, isn't the highest in the credit services industry, like Mastercard's 60.29, but it still exceeds the preferred threshold of 1.
mrq
pB
The last metric, the intrinsic value of SoFi, indicates a margin of safety of 26% and 49% in the base and best cases, respectively.
$10.14
$14.60
According to Finviz.com, SoFi Technologies, Inc.'s EPS is expected to be $0.25 next year, while its ttm EPS is currently $-0.23.
2025: $10.08
2040: $36.08
In conclusion, the company's stock looks like a buy with good future potential. However, I suggest waiting until its financial history becomes more established.