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LendingClub Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LendingClub has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for LendingClub's Piotroski F-Score or its related term are showing as below:

NYSE:LC' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 6

2
7

During the past 9 years, the highest Piotroski F-Score of LendingClub was 7. The lowest was 2. And the median was 5.


LendingClub Piotroski F-Score Historical Data

The historical data trend for LendingClub's Piotroski F-Score 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.

LendingClub Annual Data
Trend Mar12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 4.00 5.00 5.00 5.00

LendingClub Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Piotroski F-Score 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 4.00 5.00 5.00 2.00 6.00

Competitive Comparison

For the Credit Services subindustry, LendingClub's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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.

   

LendingClub Piotroski F-Score Distribution

For the Credit Services industry and Financial Services sector, LendingClub's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where LendingClub's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Net Income was -34.325 + -26.655 + -47.084 + 9.371 = $-98.7 Mil.
Cash Flow from Operations was 419.324 + 53.074 + -51.366 + 83.986 = $505.0 Mil.
Revenue was 59.118 + 59.14 + 105.84 + 200.141 = $424.2 Mil.
Average Total Assets from the begining of this year (Jun20)
to the end of this year (Jun21) was
(2452.599 + 1979.457 + 1863.293 + 4491.089 + 4370.101) / 5 = $3031.3078 Mil.
Total Assets at the begining of this year (Jun20) was $2,452.6 Mil.
Long-Term Debt & Capital Lease Obligation was $812.9 Mil.
Total Assets was $4,370.1 Mil.
Total Liabilities was $3,607.7 Mil.
Net Income was -0.383 + 0.234 + -48.087 + -78.471 = $-126.7 Mil.

Revenue was 176.9 + 166.283 + 131.186 + 38.196 = $512.6 Mil.
Average Total Assets from the begining of last year (Jun19)
to the end of last year (Jun20) was
(3066.906 + 3049.66 + 2982.341 + 2784.553 + 2452.599) / 5 = $2867.2118 Mil.
Total Assets at the begining of last year (Jun19) was $3,066.9 Mil.
Long-Term Debt & Capital Lease Obligation was $1,079.9 Mil.
Total Assets was $2,452.6 Mil.
Total Liabilities was $1,706.5 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LendingClub's current Net Income (TTM) was -98.7. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LendingClub's current Cash Flow from Operations (TTM) was 505.0. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun20)
=-98.693/2452.599
=-0.04024017

ROA (Last Year)=Net Income/Total Assets (Jun19)
=-126.707/3066.906
=-0.04131428

LendingClub's return on assets of this year was -0.04024017. LendingClub's return on assets of last year was -0.04131428. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

LendingClub's current Net Income (TTM) was -98.7. LendingClub's current Cash Flow from Operations (TTM) was 505.0. ==> 505.0 > -98.7 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=812.878/3031.3078
=0.26816082

Gearing (Last Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=1079.873/2867.2118
=0.37662826

LendingClub's gearing of this year was 0.26816082. LendingClub's gearing of last year was 0.37662826. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jun21)=Total Assets/Total Liabilities
=4370.101/3607.742
=1.21131195

Current Ratio (Last Year: Jun20)=Total Assets/Total Liabilities
=2452.599/1706.457
=1.43724629

LendingClub's current ratio of this year was 1.21131195. LendingClub's current ratio of last year was 1.43724629. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

LendingClub's number of shares in issue this year was 102.031. LendingClub's number of shares in issue last year was 70.304. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=-98.693/424.239
=-0.23263538

Net Margin (Last Year: TTM)=Net Income/Revenue
=-126.707/512.565
=-0.24720182

LendingClub's net margin of this year was -0.23263538. LendingClub's net margin of last year was -0.24720182. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun20)
=424.239/2452.599
=0.17297528

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun19)
=512.565/3066.906
=0.16712772

LendingClub's asset turnover of this year was 0.17297528. LendingClub's asset turnover of last year was 0.16712772. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+1+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LendingClub has an F-score of 6 indicating the company's financial situation is typical for a stable company.

LendingClub  (NYSE:LC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


LendingClub Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of LendingClub's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


LendingClub Business Description

LendingClub logo
Industry
Financial Services » Credit Services NAICS : 525990 SIC : 6153
Traded in Other Exchanges
Address
595 Market Street, Suite 200, San Francisco, CA, USA, 94105
LendingClub Corp is a company engaged in operating an online lending marketplace platform that connects borrowers and investors for the provision of the loan facility. It offers investors access to an asset class that has generally been closed to many investors and only available on a limited basis to institutional investors. The company through the platform offer loan products such as personal, education and patient finance, small business and auto to interested investors. It generates a majority of the revenue from the transaction fees received from the platform's role in accepting and decisioning applications on behalf of the bank partners to enable loan originations.
Executives
Kay Valerie officer: Chief Capital Officer C/O LENDINGCLUB CORPORATION 71 STEVENSON ST, SUITE 1000 SAN FRANCISCO CA 94105
Casey Thomas W officer: Chief Financial Officer 1201 THIRD AVE SEATTLE WA 98101
Koohestani Bahman officer: Chief Technology Officer 500 W. MADISON STREET #1000 CHICAGO IL 60661
Stack Fergal officer: SVP, Corporate Controller C/O LENDINGCLUB CORPORATION 71 STEVENSON ST., SUITE 300 SAN FRANCISCO CA 94105
Pace Brandon officer: General Counsel and Secretary C/O LENDINGCLUB CORPORATION 595 MARKET ST, SUITE 200 SAN FRANCISCO CA 94105
Sanborn Scott officer: CEO C/O REDENVELOPE, INC. 149 NEW MONTGOMERY STREET SAN FRANCISCO CA 94105
Bogan Timothy officer: Chief Risk Officer C/O LENDINGCLUB CORPORATION 71 STEVENSON ST, SUITE 300 SAN FRANCISCO CA 94105
Armstrong Annie officer: Chief Risk Officer C/O LENDINGCLUB CORPORATION 595 MARKET ST. #200 SAN FRANCISCO CA 94105
Momen Ronnie officer: Chief Lending Officer C/O LENDINGCLUB CORPORATION SAN FRANCISCO CA 94105
Denman Kenneth D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DENMAN KENNETH D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Zeisser Michael P director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ZEISSER MICHAEL P a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Williams Simon director C/O THE STUDENT LOAN CORPORATION 750 WASHINGTON BLVD., 9TH FLOOR STAMFORD CT 06901
Ciporin Daniel T director C/O VISTAPRINT USA, INC. 100 HAYDEN AVE LEXINGTON MA 02421
Mayopoulos Timothy J director C/O FANNIE MAE 1100 15TH STREET, NW WASHINGTON DC 20005
Morris John C. director C/O VISA INC. P.O. BOX 8999 SAN FRANCISCO CA 94128-8999

LendingClub Headlines

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