SoFi Technologies, Inc.
SoFi Technologies, Inc. Fundamental Analysis
SoFi Technologies, Inc. (SOFIW) shows moderate financial fundamentals with a PE ratio of 46.07, profit margin of 10.09%, and ROE of 5.87%. The company generates N/A in annual revenue with strong year-over-year growth of 26.33%.
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 SOFIW's fundamental strength across five key dimensions:
Efficiency Score
WeakSOFIW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOFIW shows balanced valuation metrics.
Growth Score
ModerateSOFIW shows steady but slowing expansion.
Financial Health Score
ModerateSOFIW shows balanced financial health with some risks.
Profitability Score
WeakSOFIW struggles to sustain strong margins.
Key Financial Metrics
Is SOFIW Expensive or Cheap?
P/E Ratio
SOFIW trades at 46.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SOFIW's PEG of -1.51 indicates potential undervaluation.
Price to Book
The market values SoFi Technologies, Inc. at 2.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.91 times EBITDA. This signals the market has high growth expectations.
How Well Does SOFIW 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
FCF Per Share
Each share generates $-1.27 in free cash annually.
FCF Yield
SOFIW converts -6.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.80
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 SOFIW Stacks Against Its Sector Peers
| Metric | SOFIW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.07 | 18.73 | Worse (Expensive) |
| ROE | 5.87% | 847.00% | Weak |
| Net Margin | 10.09% | 2562.00% | Weak |
| Debt/Equity | 0.17 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.95% | -21692.00% (disorted) | Weak |
SOFIW 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
-43.46%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
119.93%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-96.03%
Industry Style: Value, Dividend, Cyclical
Declining