It's been a great afternoon session for SoFi Technologies investors, who saw their shares rise 1.8% to a price of $21.36 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
SoFi Technologies's Valuation Is in Line With Its Sector Averages:
SoFi Technologies, Inc. provides various financial services in the United States, Latin America, Canada, and Hong Kong. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, SoFi Technologies has a trailing 12 month P/E ratio of 49.7 and a P/B ratio of 3.53.
SoFi Technologies has moved 200.9% over the last year compared to 11.8% for the S&P 500 — a difference of 189.0%. SoFi Technologies has a 52 week high of $21.86 and a 52 week low of $6.01.
Negative Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5 | $103 | $985 | $1,574 | $2,123 | $503 |
| Interest Income (M) | $330 | n/a | $252 | $584 | $1,262 | $1,716 |
| Operating Margins | -5301.0% | n/a | -49.0% | -20.0% | -14.0% | 46.0% |
| Net Margins | -5303% | -217% | -49% | -20% | -14% | 99% |
| Net Income (M) | -$240 | -$224 | -$484 | -$320 | -$301 | $499 |
| Depreciation & Amort. (M) | $16 | $25 | $102 | $151 | $201 | $203 |
| Diluted Shares (M) | 66 | 74 | 527 | 901 | 945 | 1,101 |
| Earnings Per Share | -$4.02 | -$4.3 | -$1.0 | -$0.4 | -$0.36 | $0.39 |
| EPS Growth | n/a | -6.97% | 76.74% | 60.0% | 10.0% | 208.33% |
| Free Cash Flow (M) | -$92 | -$486 | -$1,402 | -$7,349 | -$7,339 | -$1,274 |
| CAPEX (M) | $38 | $7 | $52 | $93 | $111 | $154 |
| Total Debt (M) | n/a | $4,799 | $3,948 | $5,486 | $421 | $81 |
SoFi Technologies has rapidly growing revenues and increasing reinvestment in the business, strong operating margins with a stable trend, and positive EPS growth. However, the firm has negative cash flows.
