📈🚀 Opportunity or failure? Shares of fintech company SoFi Technologies.
SoFi Technologies $SOFI+1.9% is an innovative fintech firm that focuses on providing a wide range of financial services, including loans, investments, banking and insurance.
CEO Anthony Noto bought back shares three times in May.
A price below $7 represents an interesting investment opportunity.
Although SoFi stock has fallen since the beginning of the year 30 %the company has become profitable and has beaten market expectations twice.
In addition, the company completed a convertible bond offering worth $750 millionto strengthen its balance sheet and repurchase higher-coupon preferred stock.
Members are the backbone of SoFi and their numbers continue to grow! 📊
Four years ago, the company had just over a million members; today it has more than 8 million. That's an incredible growth rate 65% CAGR. People are flocking to SoFi and revenue is growing proportionately.
Over the past twelve months, revenue has reached nearly five times 2019's revenue , which is a staggering 39% growth.
The high-margin financial services area is growing faster than lower-margin credit products, which means the company will be translating more gross profits into net income. 🚀
The ratio of financial services to credit products improved from 4.1 times in 2022 to nearly 6 times in 2024. Fintech services now make up 42 % of all revenues, contributing to further margin improvement.
SoFi's total deposits grew year-on-year by 16 % to $21.6 billion, significantly boosting lending. Obtaining a banking license has enabled us to operate more efficiently than our private lender competitors, as seen in our net interest margin, which increased to 5,91 % in Q12024 from 4,38 % in Q12022.
Institutions are noting strong fundamentals and potential. There was a significant increase in institutional ownership in May and the CEO Anthony Noto purchased shares in the month for $600,000. 📈
Management expects earnings per share of$0.08 to $0.09for fiscal year 2024 and anticipates 26% revenue growth through 2026 and 20% revenue growth thereafter. The company is expected to achieve earnings per share of$0.60-0.80 in 2026, which at a P/E of 20 values the stock in the range of$12-14. 💡
What's your take on this company?
For me, a great company that is innovative. However, more than $SOFI+1.9%, I was impressed by $SQ-2.3%.