LexinFintech HoldingsFRA:1LFA +0.61%60 ROE % is 6.81% as of Mar. 2026, which is 49% below its 10-year median of 13.25. GuruFocus rates FRA:1LFA with a GF Score™ of 60/100 and a GF Value™ of €2.63 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 529 Credit Services companies, LexinFintech Holdings ranks better than 73.53% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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, LexinFintech Holdings's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, LexinFintech Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where LexinFintech Holdings's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
LexinFintech Holdings (FRA:1LFA) has a ROE % of 6.81% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on LexinFintech Holdings and its competitors. This is 49% below median its historical median of 13.25. According to the industry distribution chart, LexinFintech Holdings ranks #140 out of 529 companies in the Credit Services industry, placing it in the top 26.5%.
Is LexinFintech Holdings' ROE % too high?
LexinFintech Holdings' current ROE % of 6.81% is 49% below median its 10-year median of 13.25. The Credit Services industry median ROE % is 6.61. LexinFintech Holdings' value of 6.81% is 3% above this industry median. Based on the distribution chart, LexinFintech Holdings ranks #140 out of 529 companies in the Credit Services industry, which is above the industry midpoint. Overall, LexinFintech Holdings has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LexinFintech Holdings' ROE % compare to TROO and LPRO?
According to the Credit Services industry distribution chart, LexinFintech Holdings ranks #140 out of 529 companies for ROE %. This puts LexinFintech Holdings in the upper half of its industry. The industry median ROE % is 6.61. LexinFintech Holdings' value of 6.81% is 3% above this benchmark. While the company's 10-year median is 13.25 vs. the industry median of 6.61, LexinFintech Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LexinFintech Holdings's current ROE % of 6.81% is 3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on LexinFintech Holdings and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LexinFintech Holdings's current ROE % is 6.81%, which is 49% below median its own 10-year median of 13.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LexinFintech Holdings stock overvalued right now?
Based on GuruFocus' analysis, LexinFintech Holdings (FRA:1LFA) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.63, compared to a current price of €1.66 — trading 36.9% below its estimated fair value. The current ROE % is 6.81%, which is 49% below median its 10-year median of 13.25 and 3% above the Credit Services industry median of 6.61. LexinFintech Holdings' overall GF Score™ is 60/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For LexinFintech Holdings (FRA:1LFA), the current ROE % is 6.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LexinFintech Holdings (FRA:1LFA) Overvalued in 2026?
Based on GuruFocus' analysis, LexinFintech Holdings stock appears to be undervalued.
The current stock price of €1.66 is trading 36.9% below its estimated GF Value™ of €2.63.
GuruFocus considers LexinFintech Holdings to be Significantly Undervalued.
Key valuation signals for FRA:1LFA:
ROE %: 6.81% (49% below median its 10-year median of 13.25)
GF Value™: €2.63 vs. price of €1.66 (36.9% below fair value)
Industry Position: 3% above the Credit Services median (#140 of 529)
No single metric tells the full story. See the FRA:1LFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LexinFintech Holdings Ltd is an online consumer finance platform and a technology-driven service provider in China. The group is engaged in online direct sales services and online consumer finance services for its customers in the PRC. Geographically, it derives revenue from China.
60GF Score
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