Stock fact sheet · data as of
LexinFintech Holdings Ltd. (LX): fair value, margin of safety and Wheel Score
Financial Services · Financial - Credit Services · China · ADR · High Yield Income
Is LX undervalued?
LexinFintech Holdings Ltd. (LX) closed at 0.6840 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 85.88, which puts the price 99% below it. 9 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: EPV gives 10.40 while 10 Cap gives 405.64. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files LX under High Yield Income: a dividend yield above 4%.
Nine valuation models for LX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 41.78 | +6008% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 50.59 | +7296% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 53.55 | +7728% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 23.40 | +3322% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 57.31 | +8279% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 405.64 | +59205% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 92.67 | +13448% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 37.58 | +5394% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 10.40 | +1421% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 15.02 | +2095% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 3.50 | +412% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - LX passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.9 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 9.7%, ROE 13.6%, ROA 7.0% - with debt at 0.40 times equity and negative free cash flow.
The dividend yield is high at 55.85% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Service 92%, Service, Other 8% (fiscal year FY2025).
Institutional ownership scores 4/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 9.7% |
|---|---|---|---|
| GLS Moat | 5.9 / 10 | ROE | 13.6% |
| Debt / equity | 0.40 | ROA | 7.0% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 63: Fair
LX scores 63 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 25/25, Health 11/20, Moat 9/15, Premium 5/20, Stability 13/20. Premium (5/20) is where the points are missing.
Implied volatility is 202%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. Chain open interest is 42,368 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.3M shares a day on a market cap of $115M, with a beta of 0.83; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 99% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 5.9/10 | |
| Premium | 5 / 20 | implied volatility 202% | |
| Stability | 13 / 20 | 1.3M shares/day, $115M cap, beta 0.83 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 30 Nov 2026 (before the open), 45 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to LexinFintech Holdings Ltd. by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
| FOA Finance of America Companies Inc. | 10.99 | - | - | 39Weak | $101M |
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| TROO TROOPS, Inc. | 1.63 | - | - | 25Weak | $199M |
| CPSS Consumer Portfolio Services, Inc. | 9.17 | 69.18 | +87% | 73Good | $201M |
| JFIN Jiayin Group Inc. | 1.22 | 50.42 | +98% | 45Weak | $64M |
| YRD Yiren Digital Ltd. | 0.6496 | 39.61 | +98% | 45Weak | $56M |
| ANTA Antalpha Platform Holding Company | 2.33 | 16.10 | +86% | 39No options | $56M |
| MFIN Medallion Financial Corp. | 11.19 | 65.18 | +83% | 76Good | $257M |
| RWAY Runway Growth Finance Corp. | 6.31 | 19.22 | +67% | 45Weak | $264M |
| RWAYL Runway Growth Finance Corp. - 7 | 25.25 | 26.73 | +6% | 39No options | $268M |
| VRM Vroom, Inc. | 8.95 | 140.85 | +94% | 39No options | $47M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about LX
Is LX undervalued right now?
By the GLS models, yes: at 0.6840 the stock is 99% below the average fair value of 85.88 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of LX and what does it mean?
LX scores 63 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LX?
85.88 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does LexinFintech Holdings Ltd. report earnings next?
The next earnings report is due on 30 Nov 2026 (before the open), 45 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LX have listed options, and how liquid are they?
Yes. The nightly snapshot found 116 listed contracts with 42,368 open interest across all expiries and implied volatility of 202% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.