SoFi Technologies, Inc. (SOFI) on Decifer

Why it ranks here

• Its returns on invested money are modest, around 4% and those returns have been improving.
• Revenue is growing about 29% a year, profits are expected to grow 40%, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, with profitability widening as it grows.
• It is riding an active market tailwind but its balance sheet leaves little room to fund growth.
• It keeps issuing a lot of new shares, which dilutes its owners and it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.

The current read

The evidence on SOFI lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Digitizing Financial Software & Compliance: Banks and consumers are replacing legacy financial systems with cloud-based software for core banking, tax, credit decisioning and health-savings administration.

Read the full SOFI research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.