Market Cap : 1.63 B | Enterprise Value : 831.02 M | PE Ratio : 5.92 | PB Ratio : 1.53 |
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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Warning Sign:
Beneish M-Score 0.12 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for LendingClub's Beneish M-Score or its related term are showing as below:
During the past 10 years, the highest Beneish M-Score of LendingClub was 0.12. The lowest was -5.57. And the median was -2.08.
The historical data trend for LendingClub's Beneish M-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.
For the Credit Services subindustry, LendingClub's Beneish M-Score, along with its competitors' market caps and Beneish M-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.
For the Credit Services industry and Financial Services sector, LendingClub's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where LendingClub's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of LendingClub for today is based on a combination of the following eight different indices:
M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
= | -4.84 | + | 0.92 * 1 | + | 0.528 * 1 | + | 0.404 * 0.9604 | + | 0.892 * 2.4976 | + | 0.115 * 10.8445 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.6871 | + | 4.679 * -0.0259 | - | 0.327 * 0.3277 | |||||||
= | 0.12 |
* 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 (Jun22) TTM: | Last Year (Jun21) TTM: |
Total Receivables was $0 Mil. Revenue was 324.388 + 284.013 + 257.827 + 241.9 = $1,108 Mil. Gross Profit was 324.388 + 284.013 + 257.827 + 241.9 = $1,108 Mil. Total Current Assets was $1,445 Mil. Total Assets was $6,187 Mil. Property, Plant and Equipment(Net PPE) was $192 Mil. Depreciation, Depletion and Amortization(DDA) was $4 Mil. Selling, General, & Admin. Expense(SGA) was $537 Mil. Total Current Liabilities was $120 Mil. Long-Term Debt & Capital Lease Obligation was $238 Mil. Net Income was 182.06 + 40.836 + 29.108 + 27.185 = $279 Mil. Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil. Cash Flow from Operations was 191.282 + 40.673 + 121.582 + 85.667 = $439 Mil. |
Total Receivables was $0 Mil. Revenue was 200.141 + 102.548 + 72.349 + 68.631 = $444 Mil. Gross Profit was 200.141 + 102.548 + 72.349 + 68.631 = $444 Mil. Total Current Assets was $846 Mil. Total Assets was $4,370 Mil. Property, Plant and Equipment(Net PPE) was $177 Mil. Depreciation, Depletion and Amortization(DDA) was $49 Mil. Selling, General, & Admin. Expense(SGA) was $313 Mil. Total Current Liabilities was $154 Mil. Long-Term Debt & Capital Lease Obligation was $617 Mil. |
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total Receivables in year t to year t-1.
A large increase in DSR could be indicative of revenue inflation.
DSRI | = | (Receivables_t / Revenue_t) | / | (Receivables_t-1 / Revenue_t-1) |
= | (0 / 1108.128) | / | (0 / 443.669) | |
= | 0 | / | 0 | |
= | 1 |
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
GMI | = | GrossMargin_t-1 | / | GrossMargin_t |
= | (GrossProfit_t-1 / Revenue_t-1) | / | (GrossProfit_t / Revenue_t) | |
= | (443.669 / 443.669) | / | (1108.128 / 1108.128) | |
= | 1 | / | 1 | |
= | 1 |
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.
AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
= | (1 - (1444.974 + 191.632) / 6186.765) | / | (1 - (846.151 + 177.288) / 4370.101) | |
= | 0.7354666 | / | 0.76580885 | |
= | 0.9604 |
4. SGI = Sales Growth Index
Ratio of Revenue in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
SGI | = | Sales_t | / | Sales_t-1 |
= | Revenue_t | / | Revenue_t-1 | |
= | 1108.128 | / | 443.669 | |
= | 2.4976 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI | = | (Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) | / | (Depreciation_t / (Depreciaton_t + PPE_t)) |
= | (48.884 / (48.884 + 177.288)) | / | (3.897 / (3.897 + 191.632)) | |
= | 0.21613639 | / | 0.01993055 | |
= | 10.8445 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
SGAI | = | (SGA_t / Sales_t) | / | (SGA_t-1 /Sales_t-1) |
= | (536.825 / 1108.128) | / | (312.795 / 443.669) | |
= | 0.48444313 | / | 0.70501883 | |
= | 0.6871 |
7. LVGI = Leverage Index
The ratio of total debt to Total Assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase in leverage
LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
= | ((237.631 + 120.165) / 6186.765) | / | ((617.397 + 153.929) / 4370.101) | |
= | 0.05783249 | / | 0.17650073 | |
= | 0.3277 |
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA | = | (IncomefromContinuingOperations_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t |
= | (NetIncome_t - NonOperatingIncome_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t | |
= | (279.189 - 0 | - | 439.204) | / | 6186.765 | |
= | -0.0259 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
LendingClub has a M-score of 0.12 signals that the company is likely to be a manipulator.
Thank you for viewing the detailed overview of LendingClub's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Harris Adrienne | director | 150 NORTH RIVERSIDE PLAZA SUITE 5200 CHICAGO IL 60606 |
Selleck Erin | director | C/O BROADWAY FINANCIAL CORPORATION 5055 WILSHIRE BLVD. SUITE 500 LOS ANGELES CA 90036 |
Landon Allan R | director | 130 MERCHANT ST 22ND FLR HONOLULU HI 96813 |
Armstrong Annie | officer: Chief Risk Officer | C/O LENDINGCLUB CORPORATION 595 MARKET ST. #200 SAN FRANCISCO CA 94105 |
Shanda Global Investment Ltd | 10 percent owner | 303 TWIN DOLPHIN DRIVE #6054 REDWOOD CITY CA 94065 |
Zeisser Michael P | director | |
Pace Brandon | officer: General Counsel and Secretary | C/O LENDINGCLUB CORPORATION 595 MARKET ST, SUITE 200 SAN FRANCISCO CA 94105 |
Momen Ronnie | officer: Chief Lending Officer | C/O LENDINGCLUB CORPORATION SAN FRANCISCO CA 94105 |
Kay Valerie | officer: Chief Capital Officer | C/O LENDINGCLUB CORPORATION 71 STEVENSON ST, SUITE 1000 SAN FRANCISCO CA 94105 |
Koohestani Bahman | officer: Chief Technology Officer | 500 W. MADISON STREET #1000 CHICAGO IL 60661 |
Athey Susan C | director | C/O EXPEDIA, INC. 333 108TH AVE NE BELLEVUE WA 98004 |
Shanda Group Usa Ltd | 10 percent owner | 2735 SAND HILL ROAD #140 MENLO PARK CA 94025 |
Mccord Patricia J | director | C/O NETFLIX, INC 100 WINCHESTER CIRCLE LOS GATOS CA 95032 |
Stack Fergal | officer: SVP, Corporate Controller | C/O LENDINGCLUB CORPORATION 71 STEVENSON ST., SUITE 300 SAN FRANCISCO CA 94105 |
Denman Kenneth D | director |
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