The thesis

OppFi operates a financial technology platform offering lending solutions with high gross margins of 11375.0% and a low P/E ratio of 4.7x. The company's revenue growth is declining at -45.2% YoY. Despite a buy rating from analysts, the conviction score is low at 12/100. The high margins and low valuation make OppFi compelling amidst a fintech theme exposure.

Why now

The recent macro context of Trump's 100% Drone Tariff has driven risk-on rotation, although it is currently inactive. OppFi's connection to the fintech story and its financial performance make it worth watching now.

What to watch

Investors should monitor OppFi's revenue growth trajectory and margin stability over the next quarter to gauge the company's financial health. The DCF intrinsic value of $32 is another key metric to watch for potential valuation risks.

Key risks

The declining revenue growth of -45.2% YoY poses a significant risk to OppFi's valuation. The low conviction score of 12/100 indicates a lack of confidence in the company's prospects, which could lead to further downside risk.

Theme exposure