One-glance verdict
Undervalued
$1,767.08 our estimate vs market $171.16
Wall Street consensus: $230.83 (-86.9% lower than our fair-value estimate)
90% below our estimate, below the bear case
Fundamentals snapshot
Enova International, Inc.
ENVA · NYQ · Financial Services · Credit Services
Current price
$171.16
52-week range
$119.02 - $267.45
Market cap
$4.19B
Balance sheet
Distressed
3.51x Stretched
Net debt $5.29B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 15.9% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 103.4% over 3 years.
- Risk Stock trades 10.4% above its 5-year average P/E.
What this company does
Enova International, Inc.
Enova International is a tech company that mainly offers online loans to individuals and small businesses in different countries. They make money by charging interest on these loans, which is their primary source of revenue. Understanding how well they manage the costs associated with making these loans, like the interest they have to pay or the costs of processing applications, helps us know if they are making a good profit.
How the company got here
Enova International started in 2004 as a subsidiary of Dollar Financial Group, initially focusing on online consumer lending. It launched its first major brand, CashNetUSA, in 2004, which became a pioneer in the online payday lending space. The company was later acquired by Cash America International in 2006, which provided it with more resources. A significant turning point came in 2014 when Enova was spun off from its parent company and became an independent, publicly traded entity on the New York Stock Exchange. This move allowed Enova to pursue its own growth strategies and access capital markets more directly. In 2020, Enova further diversified by acquiring OnDeck, a prominent small business lending platform, expanding its reach beyond consumer credit.
What it actually does
Enova International is a technology company that provides online financial services, primarily loans, to individuals and small businesses that may not qualify for traditional bank loans. They use advanced technology and data analysis, including machine learning and artificial intelligence, to quickly assess creditworthiness and offer loans. Enova operates through a variety of well-known brands, making it easier for different types of customers to find the financial products they need. Their core business involves earning money through the interest and fees charged on the loans they provide.
Consumer Lending
This part of Enova's business focuses on providing loans and lines of credit to individual consumers. Brands like CashNetUSA and NetCredit offer products such as installment loans (loans paid back in regular installments over time) and lines of credit (a set amount of money that can be borrowed as needed). These services are designed for people who may have a harder time getting loans from traditional banks, often referred to as 'non-prime' or 'near-prime' borrowers. This segment is a significant part of Enova's overall business, providing a substantial portion of its revenue through interest and fees.
Small Business Lending
Through brands like OnDeck and Headway Capital, Enova offers financial products specifically for small businesses. These include term loans (loans with a fixed repayment schedule) and lines of credit, which help businesses manage their working capital or fund growth. Enova uses its technology to quickly evaluate small business loan applications, serving businesses that might be overlooked by larger financial institutions. This segment has grown significantly, especially after the acquisition of OnDeck, and represents a substantial portion of Enova's loan portfolio and revenue.
What management is betting on now
Enova's management is focused on growing its loan portfolios in both the consumer and small business segments while maintaining strict credit quality standards. A key strategy involves leveraging its advanced technology and data analytics to improve how it assesses risk and offers credit, aiming for efficient growth. They are also exploring new product offerings that align with their digital-first model and underwriting strengths, potentially including secured consumer loans or innovative deposit advance products. Furthermore, Enova is looking to expand its reach through partnerships with commercial banks and neobanks, integrating its services into platforms that already serve businesses and consumers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$420.34M
FY2025 Q1
$378.27M
FY2025 Q2
$436.14M
FY2025 Q3
$470.46M
FY2025 Q4
$487.12M
FY2026 Q1
$463.79M
FY2026 Q2
$531.42M
FY2026 Q3
$523.99M
Revenue
$1.01B
Net income
$107.30M
Diluted EPS
4.06
Operating cash flow
$535.62M
Free cash flow
$523.99M
Fetching…
Sources
Revenue
$928.93M
Net income
$105.06M
Diluted EPS
4.00
Operating cash flow
$544.03M
Free cash flow
$531.42M
Fetching…
Sources
Revenue
$875.14M
Net income
$91.10M
Diluted EPS
3.46
Operating cash flow
$474.54M
Free cash flow
$463.79M
Fetching…
Sources
Revenue
$839.39M
Net income
$78.98M
Diluted EPS
2.94
Operating cash flow
$498.81M
Free cash flow
$487.12M
Fetching…
Sources
Revenue
$802.68M
Net income
$80.31M
Diluted EPS
3.03
Operating cash flow
$481.80M
Free cash flow
$470.46M
Fetching…
Sources
Revenue
$764.04M
Net income
$76.15M
Diluted EPS
2.86
Operating cash flow
$447.36M
Free cash flow
$436.14M
Fetching…
Sources
Revenue
$745.54M
Net income
$72.94M
Diluted EPS
2.69
Operating cash flow
$391.14M
Free cash flow
$378.27M
Fetching…
Sources
Revenue
$729.55M
Net income
$63.70M
Diluted EPS
2.29
Operating cash flow
$430.52M
Free cash flow
$420.34M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1,767.08 vs current price $171.16
Wall Street consensus is the average analyst price target: $230.83 (-86.9% lower than our fair-value estimate).
Our most-likely fair value is $1,767.08 a share — about 932.4% above today's price of $171.16, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $5.3B. Interest coverage 3.5x.
Net debt
$5.29B
Interest coverage
3.51x
Enova International, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Distressed
Worse cushion
Baseline
Better cushion
ENVA
BASELINE
Enova International, Inc.
Total debt $5.41B Interest coverage 3.51x This is the baseline the peer rows are being compared against.
What you should know
The case for and against ENVA
2 Rewards
2 Risks
Rewards
-
Revenue grew 15.9% last year.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 103.4% over 3 years.
-
Stock trades 10.4% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
11.82x
Forward P/E
8.03x
P/B
2.70x
P/S
2.29x
EV/EBITDA
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PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
83.7%
Operating margin
27.7%
Net margin
20.9%
ROE
26.8%
ROA
5.6%
Health
Liquidity and balance-sheet strength
Debt / equity
3.45x
Current ratio
20.66x
Quick ratio
19.54x
Total debt
$5.41B
Total cash
$117.40M
Growth
How the business has been compounding
Revenue TTM
$3.65B
Revenue 5Y CAGR
27.1%
EPS TTM
14.48
EPS 5Y CAGR
23.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.05B
Free CF TTM
$1.77B
FCF margin
48.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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