$LendingClub (LC.US)$In the past 5 years, except for a signi...

The company's revenue mainly comes from commission income, with interest income accounting for about 70% of the commission income. Credit losses reserves have been increasing year by year in the past two years, and sales and management expenses have also grown rapidly. Fortunately, the growth rate of revenue is sufficient to offset these expense increases.

The debt-to-asset ratio has increased from 77.2% to 85.4% in the past 5 years. Assets mainly consist of cash and loans, with little goodwill that can be ignored. Liabilities are mainly customer deposits, with few borrowings. From this perspective, the business logic is to attract high-interest deposits and provide high-interest loans to earn income in the form of interest and commission.

Net assets are 1.16 billion, customer deposits are 6.4 billion, and net loans are 5.8 billion, which seems relatively safe.

Currently, the PE ratio is 3.2 and the PB ratio is 0.82. Considering the current interest rate environment, it is advisable to choose cautiously (⭐️).