SoFi Technologies, Inc. (SOFI) Stock Analysis
SoFi Technologies, Inc. (SOFI) Stock Analysis
Overall Grade: F (Concerning)
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SoFi Technologies, Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | -643.4% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is SoFi Technologies, Inc.'s Profitability and ROIC?
SoFi Technologies, Inc.'s return on invested capital of N/A is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below cost of capital |
| Return on Equity (ROE) | 6.2% | Warning | Moderate equity returns |
How Strong is SoFi Technologies, Inc.'s Cash Flow Quality?
SoFi Technologies, Inc. generated $-4.0B in free cash flow over the trailing twelve months, representing a -643.4% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -643.4% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-4.0B | Red flag | Cash burn |
| OCF/Net Income | -7.8x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is SoFi Technologies, Inc.'s Financial Health?
SoFi Technologies, Inc.'s debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is SoFi Technologies, Inc. Stock Overvalued or Undervalued?
SoFi Technologies, Inc. trades at a P/E of 62.3x, representing a premium to the sector median of N/A. Free cash flow yield of -13.2% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 62.3x | Warning | Premium valuation |
| EV/Sales | 43.3x | Warning | Growth premium priced in |
| FCF Yield | -13.2% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | -643.4% | Bottom 10% | - |
| Return on Equity (ROE) | 6.2% | Bottom 50% | 0.8x below |
| P/E Ratio | 62.3x | N/A | - |
Rating Thresholds
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -643.4% (Red flag)
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 62.3x (Warning)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -13.2% (Red flag)
Frequently Asked Questions
Q: What is SoFi Technologies, Inc.'s Return on Invested Capital (ROIC)?
SoFi Technologies, Inc. (SOFI) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 4.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is SoFi Technologies, Inc.'s Free Cash Flow Margin?
SoFi Technologies, Inc. (SOFI) has a free cash flow margin of -643.4%, generating $-4.0 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is SoFi Technologies, Inc. stock overvalued or undervalued?
SoFi Technologies, Inc. (SOFI) trades at a P/E ratio of 62.3x, which is above the sector median of N/A. The EV/Sales multiple is 43.3x.
Q: What is SoFi Technologies, Inc.'s revenue and earnings growth?
SoFi Technologies, Inc. (SOFI) grew revenue by 23.1% year-over-year. Earnings per share decreased by 0.0% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does SoFi Technologies, Inc. compare to competitors in Other?
Compared to other companies in Other, SoFi Technologies, Inc. (SOFI) shows: ROIC of N/A is below the sector median of 4.3% (NaNx median). FCF margin of -643.4% trails the sector median of 0.0%. These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.
Q: What warning signs should I watch for with SoFi Technologies, Inc.?
Investors in SoFi Technologies, Inc. (SOFI) should monitor these potential warning signs: 1) FCF margin is thin at -643.4%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.