Lendingtree Stock Fair Value Calculation – LENDINGTREE Reports Strong Earnings for 2nd Quarter of FY2023
August 22, 2023
☀️Earnings Overview
LENDINGTREE ($NASDAQ:TREE) announced their financial results for the second quarter of FY2023 on June 30 2023. Total revenue was USD 182.4 million, a decrease of 30.3% year-over-year. Net income was USD -0.12 million, a marked improvement from the -8.04 million reported in the same quarter of the previous year.
Share Price
On Thursday, LENDINGTREE reported its second quarter earnings for the fiscal year of 2023 and the news was not good. The stock opened at $24.2 and quickly plummeted to close at just $21.0, a 25.2% drop from its prior closing price of 28.1. Investors responded negatively to the news and the stock’s value took a significant hit. Analysts were expecting a robust performance from LENDINGTREE, but were disappointed with the results. It was clear that investors had hoped for better results and analysts were caught off-guard by the poor performance.
The stock had been performing positively for weeks prior and investors had high expectations for the company’s earnings report. Overall, LENDINGTREE reported a less-than-ideal second quarter for FY2023, as evidenced by the 25.2% decline in its stock price. The company’s strong performance in previous quarters had led investors to expect more, but the stock’s plunge serves as a stark reminder that there are no guarantees in the stock market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lendingtree. LENDINGTREE_Reports_Strong_Earnings_for_2nd_Quarter_of_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 822.85 | -155.75 | -18.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lendingtree. LENDINGTREE_Reports_Strong_Earnings_for_2nd_Quarter_of_FY2023″>More…
| Operations | Investing | Financing |
| 55.1 | -9.94 | -161.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lendingtree. LENDINGTREE_Reports_Strong_Earnings_for_2nd_Quarter_of_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.04k | 797.42 | 18.64 |
Key Ratios Snapshot
Some of the financial key ratios for Lendingtree are shown below. LENDINGTREE_Reports_Strong_Earnings_for_2nd_Quarter_of_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.3% | -85.1% | -2.5% |
| FCF Margin | ROE | ROA |
| 5.5% | -5.4% | -1.2% |
Analysis – Lendingtree Stock Fair Value Calculation
At GoodWhale, we conducted an analysis of LENDINGTREE‘s wellbeing. Through our comprehensive evaluation, we have determined the intrinsic value of LENDINGTREE’s share to be around $85.0, calculated by our proprietary Valuation Line. This value is substantially higher than the current market price of $21.0, which represents a 75.3% undervaluation. Our results indicate that there is significant potential for financial growth if LENDINGTREE’s stock can reach its real worth. More…
Peers
The company operates an online loan marketplace for consumers seeking loans. LendingTree competes with BorrowMoney.com Inc, Harmoney Corp Ltd, Sidney Federal Savings & Loan Association, and other companies in the loan marketplace industry.
– BorrowMoney.com Inc ($OTCPK:BWMY)
BorrowMoney.com Inc is a US-based online lending platform. The company offers personal loans, student loans, and small business loans. It has a market cap of $3.57M as of 2022 and a ROE of 70.92%. The company was founded in 2010 and is headquartered in San Francisco, California.
Summary
Investors were not pleased with the second quarter earnings report of LENDINGTREE, as total revenue decreased by 30.3% compared to the same quarter in the prior year, while net income was -0.12 million, a significant improvement from the -8.04 million reported last year. The stock price reacted negatively and moved down following the announcement of the results. Investors should carefully evaluate all risks and opportunities associated with investing in LENDINGTREE, as the company’s performance in the current quarter may not be indicative of future performance.
