SoFi Technologies, Inc.SOFI
NASDAQ • Financial Services
$18.44
P/E
44.68
PEG
1.82
FCF Yield
-16.9%
Rev Growth YoY
+5.3% YoY
Gross Margin
53.5%
Health Score
4/10
D/E Ratio
0.17
Confidence
MEDIUM
Business Snapshot
SoFi Technologies is a digital-first financial services company offering a broad suite of products including personal loans, student loan refinancing, home loans, banking, investing, and credit card services through its mobile platform. It operates in the highly competitive U.S. consumer financial services market and has expanded into financial infrastructure services via its Galileo and Technisys subsidiaries. At a market cap of $23.52B, SoFi sits firmly in large-cap territory.
Financial Health
Score: 4/10
SoFi's financial health presents a mixed picture. On the positive side, the debt/equity ratio of 0.17x reflects a conservatively leveraged balance sheet...
Risk Assessment
- CASH FLOW: Free cash flow is deeply negative at -$3.98B, representing an FCF yield of -16.9%, indicating the company is burning capital at a material rate.
- MARGIN COMPRESSION: Gross margin fell from 75.1% to 53.5% year-over-year — a 21.6 percentage point decline — suggesting significant cost structure or business mix deterioration.
- VALUATION PREMIUM: P/E of 44.68x is approximately 79% above the sector average of ~25x, leaving little margin of safety if growth disappoints.
- TECHNICAL WEAKNESS: A death cross (50-day MA crossing below 200-day MA) is in effect, and the current price of $18.44 sits 22.8% below the 200-day moving average of $23.87, indicating a sustained downtrend.
- 52-WEEK RANGE: The stock trades at $18.44 — 43.7% below its 52-week high of $32.73 — reflecting significant capital destruction for recent buyers.
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