Fundamentals Analysis for LexinFintech Holdings Ltd. (LX)

LexinFintech Holdings Ltd. (NASDAQ:LX) is on our radar right now but there could still be some opportunities on the horizon. Now trading with a market value of 1.90B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.

LexinFintech Holdings Ltd. (NASDAQ:LX) Fundamentals That Matter

It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For LX, the company currently has 463.19 million of cash on the books, which is offset by 1.06 billion in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 0 in total assets, balanced by 27.19 million in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

LexinFintech Holdings Ltd. saw 0 in free cash flow last quarter, representing a quarterly net change in cash of 0. Perhaps most importantly where cash movements are concerned, the company saw about 0 in net operating cash flow.

LexinFintech Holdings Ltd. (NASDAQ:LX) Revenue Growth Potential

As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 363.14 million in total revenues. That represents a quarterly year/year change in revenues of 0.26% in sequential terms, the LX saw sales decline by 0.19%.

But what about the bottom line? After all, that’s what really matters in the end. LexinFintech Holdings Ltd. is intriguing when broken down to its core data. The cost of selling goods last quarter was 203.06 million, yielding a gross basic income of 160.07 million. For shareholders, given the total diluted outstanding shares of 161.16M, this means overall earnings per share of 520.