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LexinFintech Holdings (NAS:LX) Earnings Yield (Joel Greenblatt) %

: 12.71% (As of Mar. 2023)
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LexinFintech Holdings's Enterprise Value for the quarter that ended in Mar. 2023 was $1,563 Mil. LexinFintech Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2023 was $199 Mil. LexinFintech Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2023 was 12.71%.

The historical rank and industry rank for LexinFintech Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

LX' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.25   Med: 11.3   Max: 35.88
Current: 13.61

During the past 8 years, the highest Earnings Yield (Joel Greenblatt) of LexinFintech Holdings was 35.88%. The lowest was 1.25%. And the median was 11.30%.

LX's Earnings Yield (Joel Greenblatt) % is ranked better than
84.5% of 387 companies
in the Credit Services industry
Industry Median: 2.37 vs LX: 13.61

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. LexinFintech Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2023 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


LexinFintech Holdings Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for LexinFintech Holdings's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LexinFintech Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only 16.58 11.59 4.84 30.03 11.24

LexinFintech Holdings Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.98 14.68 11.56 11.24 12.71

Competitive Comparison

For the Credit Services subindustry, LexinFintech Holdings's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

LexinFintech Holdings Earnings Yield (Joel Greenblatt) % Distribution

For the Credit Services industry and Financial Services sector, LexinFintech Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where LexinFintech Holdings's Earnings Yield (Joel Greenblatt) % falls in comparison to its industry or sector. The grey bar indicates the Earnings Yield (Joel Greenblatt) %'s extreme value range as defined by GuruFocus.



LexinFintech Holdings Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

LexinFintech Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2022 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=155.515/1383.6563
=11.24 %

LexinFintech Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $199 Mil.



LexinFintech Holdings  (NAS:LX) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


LexinFintech Holdings Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of LexinFintech Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


LexinFintech Holdings (NAS:LX) Business Description

LexinFintech Holdings logo
Traded in Other Exchanges
Address
No. 3099 Keyuan South Road, 27th Floor, China Energy Storage Tower, Nanshan District, Shenzhen, CHN, 518057
LexinFintech Holdings Ltd is an online consumer finance platform and a technology-driven service provider in China. The group is engaged primarily in online direct sales services and online consumer financial services for its customers in China. It offers online direct sales with installment payment terms and offers installment purchase loans and personal installment loans mainly through its retail and online consumer finance platform www.fenqile.com, and its mobile application to young adults between the age of 18 and 36 in the People's Republic of China. The company also finances the loans with proceeds from partnering peer-to-peer lending platforms, commercial banks, and other financial institutions. Geographically, it derives revenue from China.

LexinFintech Holdings (NAS:LX) Headlines

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