SoFi Technologies, Inc.
SoFi Technologies, Inc. Fundamental Analysis
SoFi Technologies, Inc. (SOFI) shows moderate financial fundamentals with a PE ratio of 47.76, profit margin of 10.09%, and ROE of 5.87%. The company generates $4.9B in annual revenue with strong year-over-year growth of 27.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SOFI's fundamental strength across five key dimensions:
Efficiency Score
WeakSOFI struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOFI shows balanced valuation metrics.
Growth Score
ModerateSOFI shows steady but slowing expansion.
Financial Health Score
ModerateSOFI shows balanced financial health with some risks.
Profitability Score
WeakSOFI struggles to sustain strong margins.
Key Financial Metrics
Is SOFI Expensive or Cheap?
P/E Ratio
SOFI trades at 47.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SOFI's PEG of -1.57 indicates potential undervaluation.
Price to Book
The market values SoFi Technologies, Inc. at 2.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.52 times EBITDA. This signals the market has high growth expectations.
How Well Does SOFI Make Money?
Net Profit Margin
For every $100 in sales, SoFi Technologies, Inc. keeps $10.09 as profit after all expenses.
Operating Margin
Core operations generate 17.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.87 in profit for every $100 of shareholder equity.
ROA
SoFi Technologies, Inc. generates $0.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SoFi Technologies, Inc. generates limited operating cash flow of $-1.42B, signaling weaker underlying cash strength.
Free Cash Flow
SoFi Technologies, Inc. generates weak or negative free cash flow of $-1.61B, restricting financial flexibility.
FCF Per Share
Each share generates $-1.27 in free cash annually.
FCF Yield
SOFI converts -6.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How SOFI Stacks Against Its Sector Peers
| Metric | SOFI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.76 | 18.86 | Worse (Expensive) |
| ROE | 5.87% | 847.00% | Weak |
| Net Margin | 10.09% | 4202.00% | Weak |
| Debt/Equity | 0.17 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 0.95% | -21543.00% (disorted) | Weak |
SOFI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SoFi Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-43.19%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
123.01%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-126.28%
Industry Style: Value, Dividend, Cyclical
Declining