Open Lending Intrinsic Value – OPEN LENDING Reports Financial Results for FY2023 Q2 Ending August 8, 2023
August 11, 2023
🌥️Earnings Overview
OPEN LENDING ($NASDAQ:LPRO) reported their earnings results for the second quarter of FY2023, ending August 8 2023. The company saw total revenue of USD 38.1 million, a drop of 26.7% compared to the same quarter of the previous year. Net income was also significantly down, coming in at USD 11.4 million, a decrease of 50.8% year-over-year.
Market Price
On Tuesday, OPEN LENDING reported its financial results for fiscal year 2023, second quarter ending August 8, 2023. The stock opened at $10.3 and closed at $10.2, down by 1.9% from the prior closing price of $10.4. Despite the minor decline, OPEN LENDING’s overall performance was positive. OPEN LENDING attributed the increase in revenue to its strong customer demand for online lending and its successful strategies to increase market share in the sector.
The company also reported that it has made significant improvements in its operational efficiency, which has helped to reduce its cost of goods sold and boost its overall profit margin. OPEN LENDING is confident about its future prospects and believes that its financial results for FY2023 Q2 demonstrate the strength of its business model and its ability to deliver long-term growth and success. The company plans to continue to focus on innovation and customer satisfaction while expanding its presence in online lending markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Open Lending. More…
| Total Revenues | Net Income | Net Margin |
| 154 | 44.25 | 28.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Open Lending. More…
| Operations | Investing | Financing |
| 99.42 | -1.1 | -39.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Open Lending. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 386.8 | 167.65 | 1.82 |
Key Ratios Snapshot
Some of the financial key ratios for Open Lending are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.7% | 13.2% | 46.5% |
| FCF Margin | ROE | ROA |
| 63.8% | 21.1% | 11.6% |
Analysis – Open Lending Intrinsic Value
At GoodWhale, we have conducted an analysis of OPEN LENDING‘s wellbeing. According to our proprietary Valuation Line, the intrinsic value of OPEN LENDING share is around $20.8. This means that currently OPEN LENDING stock is traded at $10.2, resulting in a 51.1% discount from the intrinsic value. We believe that OPEN LENDING is undervalued and thus stands as a great opportunity for potential investors. More…
Peers
It is a leading force in the industry alongside competitors such as Oportun Financial Corp, Medallion Financial Corp, and CreditAccess Grameen Ltd. All of these companies offer a variety of services to help lenders and customers get the financing they need.
– Oportun Financial Corp ($NASDAQ:OPRT)
Oportun Financial Corp is a consumer financial services company that specializes in providing responsible credit to individuals and their families who lack access to traditional banking or other forms of credit. As of 2022, the company has a market capitalization of 160.98M, indicating that it is a moderately sized company. The return on equity (ROE) of -4.85% indicates that the company is not generating enough profit to cover its investors’ equity. This suggests that the company may have to make changes to its operations in order to become more profitable.
– Medallion Financial Corp ($NASDAQ:MFIN)
Medallion Financial Corp is a specialty finance company that specializes in consumer and commercial loans. The company’s market capitalization is 156.14M as of 2022, which indicates the total value of the company’s outstanding shares. Additionally, Medallion Financial Corp has a Return on Equity of 16.26%, which is an indicator of the company’s profitability. Return on Equity measures how much profit a company generates with its shareholders’ investments, and a higher Return on Equity indicates a more profitable company. Overall, Medallion Financial Corp is a profitable company with a solid market capitalization.
– CreditAccess Grameen Ltd ($BSE:541770)
Access Grameen Ltd is a leading microfinance institution based in India. The company provides small loans to the underprivileged and vulnerable population, allowing them to access credit and financial services. As of 2022, Access Grameen Ltd has a market capitalization of 141.42B and a Return on Equity of 11.71%. Market Capitalization is the total value of a company’s shares and is an indication of its size and financial health. Access Grameen’s market cap reflects its success in providing access to financial services for those previously unable to access them. The Return on Equity (ROE) is an important measure of profitability, and Access Grameen’s 11.71% ROE indicates that it is making good use of its resources and generating significant returns for its shareholders.
Summary
Open Lending‘s financials for the second quarter of FY2023 have been underwhelming. Revenue for the quarter decreased by 26.7% year-over-year to USD 38.1 million, and net income dropped by more than half to USD 11.4 million. Investors should closely monitor the company’s outlook for the remainder of the fiscal year. Attention should be given to Open Lending’s ability to adjust to changing business conditions and its ability to increase revenue.
Growth initiatives should also be watched in order to assess the company’s ability to drive future gains. Open Lending remains a risk for investors, despite its strong performance over previous years.
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