SoFi Technologies, Inc. (SOFI) Stock Analysis
SoFi Technologies, Inc. (SOFI) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
SoFi Technologies, Inc. faces challenges in financial performance that warrant careful analysis.
| 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.
Explore SoFi Technologies, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: SoFi Technologies, Inc. earns N/A ROIC
SoFi Technologies, Inc.'s trailing-twelve-month ROIC of N/A (sector median: 4.1%). Source: 10-Q filed 2025-11-06.
| Metric | SOFI | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 4.1% |
| Return on Equity (ROE) | 6.2% | Warning | Moderate equity returns |
Cash Flow: SoFi Technologies, Inc. generates $-4.0B FCF at -643.4% margin, positive NaN/8 quarters
SoFi Technologies, Inc. generated $-4.0B in free cash flow (TTM), a -643.4% FCF margin, a margin that ranks Top 5% in Other. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | SOFI | Rating | Context |
|---|---|---|---|
| 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 |
Balance Sheet: SoFi Technologies, Inc. at 0.0x leverage
SoFi Technologies, Inc.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-11-06.
| Metric | SOFI | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: SoFi Technologies, Inc. trades at 62.3x earnings
SoFi Technologies, Inc. trades at a P/E of 62.3x. Free cash flow yield of -13.2% reflects market expectations for growth.
| Metric | SOFI | Rating | Context |
|---|---|---|---|
| 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 |
Capital Allocation: SoFi Technologies, Inc. returns 0.0% shareholder yield
SoFi Technologies, Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-06.
| Metric | SOFI | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | -643.4% | Top 5% | - |
| Return on Equity (ROE) | 6.2% | Bottom 50% | 0.9x below |
| P/E Ratio | 62.3x | N/A | - |
Financial Scorecard
| Metric | SOFI | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | -643.4% | Red flag | Top 5% of sector (median: 0.0%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 62.3x | Warning | High expectations priced in |
| Free Cash Flow Yield | -13.2% | Red flag | Growth-focused valuation |
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 4.1%. 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 4.1% (NaNx median). FCF margin of -643.4% trails the sector median of 0.0% (Top -51535% of sector). 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.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.