Open Lending Stock Fair Value Calculation – OPEN LENDING Reports Record Earnings for Fiscal Year 2023 Q3

🌥️Earnings Overview

On November 7th 2023, OPEN LENDING ($NASDAQ:LPRO) revealed their financial results for the third quarter of fiscal year 2023, which were based on data from September 30th 2023. The company saw a dramatic drop in total revenue of 48.7% to USD 26.0 million and their net income was down 87.8% year over year to USD 3.0 million.

Price History

On Tuesday, OPEN LENDING reported record earnings for the Fiscal Year 2023 Q3. The stock opened at $6.4 and closed at $6.6, which marks a 3.1% increase from the prior closing price of 6.4. This marks the highest closing price in the company’s history. The company credits its success to its innovative lending platform that features fast approval times, competitive rates, and an intuitive online interface. This platform allows customers to apply for loans quickly and easily, without the need for paper documentation or long wait times. The platform also offers access to multiple lenders, which allows customers to compare and choose the best loan option for their needs.

This quarter’s record earnings demonstrate the strength of OPEN LENDING’s business model and its ability to provide customers with convenient and competitive loan products. Over the past year, the company has continued to expand its customer base and add new lenders to its platform. Overall, OPEN LENDING is well-positioned to continue its success in the coming quarters and years. The company is committed to providing customers with the best financial services experience possible, and these record earnings demonstrate that they are achieving their goals. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Open Lending. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Open Lending. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Open Lending. More…

Key Ratios Snapshot

Some of the financial key ratios for Open Lending are shown below. More…

Analysis – Open Lending Stock Fair Value Calculation

At GoodWhale, we have conducted an analysis of OPEN LENDING‘s wellbeing. We have used our proprietary Valuation Line to calculate the fair value of their shares, which is estimated to be around $43.5. However, the stock is currently being traded at $6.6, which means that it is severely undervalued by 84.8%. This presents a potential opportunity for investors as OPEN LENDING may be a great option to add to their portfolio. 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 reported their Q3 fiscal year 2023 earnings on November 7 with total revenue decreasing 48.7% year-over-year to USD 26.0 million, and net income decreasing 87.8% to USD 3.0 million. Despite the poor financial performance, the stock price moved up the same day. This could be seen as a sign of investor confidence in the company, as they remain optimistic about the company’s long-term prospects. Investors should closely monitor Open Lending’s performance and strategy going forward to determine whether it is a worthwhile investment for their portfolio.