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LendingClub Corporation

Data period: Annual Quarterly
NYSE · Financial Services
LendingClub Corporation
LC · Banks - Regional
$19.21
▲ 0.4 (2.13%)
Cached · 10 min
Overall Grade
C
Defensive
C
Enterprising
Profitability
C⤢
Net Income Margin 13.6%
Fin. Health
A⤢
Years to Pay Off Debt 0.1 yrs
Valuation
F⤢
Margin of Safety 0.0%
Price-to-Book 1.48x
Cash Flow
F⤢
Free Cash Flow -$2.9B
CapEx % of Net Income 103.4%
Owner Earnings $339M
Defensive — Graham's strict criteria (P/B, P/E, dividends, stability)  ·  Enterprising — Profitability & cash flow focused, accepts higher valuations for quality
About LendingClub Corporation
LendingClub Corporation, operates as a bank holding company, that provides range of financial products and services in the United States. It offers deposit products, including savings accounts, checking accounts, and certificates of deposit; patient and education finance loans; and commercial loans, including small business loans. The company also provides consumer loans, such as Unsecured and unsecured, fixed-rate, and fixed-term consumer loans; and secured auto refinance loans. In addition, it operates a lending marketplace platform. The company was incorporated in 2006 and is headquartered in San Francisco, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Market Cap $2.2B
Enterprise Value $1.4B
P/E (TTM) 12.81
Dividend Yield N/A
Exchange NYSE
Key Margins
Gross Profit N/A
Operating Margin N/A
Net Margin 13.6%
Company Info
Sector Financial Services
Industry Banks - Regional
Employees 1075
Country United States
Visit website
📖
Full Graham Analysis

Mr. Market is currently offering LendingClub Corporation at $19.21.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $19.21, the stock trades at a 4% premium to its Graham Number of $18.43. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics
Income Highlights
Metric 2025 2024 2023 2022 2021
Gross Profit % N/A• N/A• N/A• N/A• N/A
Operating Margin % N/A• N/A• N/A• N/A• N/A
Net Income % 13.6%▲ 6.5%▲ 4.5%▼ 24.4%• N/A
Diluted EPS 1.16▲ 0.45▲ 0.36▼ 2.79• N/A
Balance Sheet Highlights
Metric 2025 2024 2023 2022 2021
Total Assets $11.6B $10.6B $8.8B $8.0B N/A
Total Debt $16M▼ $29M▼ $57M▼ $208M• N/A
Working Capital N/A• N/A• N/A• N/A• N/A
Years to Pay Debt 0.12 0.56 1.47 0.72 N/A
Cash Flow Highlights
Metric 2025 2024 2023 2022 2021
Free Cash Flow -$2.9B▼ -$2.7B▼ -$1.2B▼ $306M• N/A
Owner Earnings $339M $164M $146M $403M N/A
CapEx % of Net Income 103.4% 105.8% 152.8% 24.0% N/A
3/6
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
$18.43
Margin of Safety
0%
Market Cap / Net Assets
1.5x
Net Assets: $1.5B
Warren's Owner Earnings
$339M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/6 — Speculative Investor
❌
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$999M
vs > $1.5B revenue
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $2.79 to $1.16 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-58.4% EPS growth
vs > 33% EPS growth
✅
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
12.8x
vs P/E ≤ 15.0x
✅
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
1.48x P/B (P/E×P/B: 18.9)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
❌ Adequate Size — $999M vs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Earnings Stability — No loss years (4 yrs data) vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividend vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
❌ Earnings Growth — -58.4% EPS growth vs > 33% EPS growth
EPS grew from $2.79 to $1.16 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
✅ Moderate P/E Ratio — 12.8x vs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
✅ Moderate Price-to-Book — 1.48x P/B (P/E×P/B: 18.9) vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what LendingClub Corporation is worth based on fundamentals — independent of what the market prices it at. Graham's Fair Value and NCAV are conservative floors. EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
N/A
Cash Flow Analysis
Metric 2025 2024 2023 2022 2021
Capital Expenditure % of Net Income 103.4% 105.8% 152.8% 24.0% N/A
Repurchase of Capital Stock N/A N/A N/A N/A N/A
Free Cash Flow -$2.9B ▼ -$2.7B ▼ -$1.2B ▼ $306M • N/A •
Warren's Owner Earnings $339M $164M $146M $403M N/A
Peers & Industry
No auto-detected peers for Banks - Regional. You can manually compare LC against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
3.19%
Moderate — some alignment with shareholders
Return on Equity (ROE)
9.0%
Adequate — returns are moderate
Return on Assets (ROA)
1.2%
Poor — assets are not generating adequate returns
Debt Trend YoY
-44.5% YoY
Debt is declining — management is deleveraging
Leadership Team
Scott Sanborn
CEO & Director
Age 56
Pay: $2,132,613
1.572% of net income
Andrew LaBenne
Chief Financial Officer
Age 51
Pay: $1,238,739
0.913% of net income
Top Institutional Holders
Institution % Owned Shares
Wellington Management Group, LLP 11.06% 12,757,974
Blackrock Inc. 8.31% 9,587,787
Vanguard Portfolio Management LLC 6.62% 7,633,867
Dimensional Fund Advisors LP 4.99% 5,760,141
Vanguard Capital Management LLC 4.25% 4,905,744
Senvest Management LLC 3.94% 4,546,812
Fuller & Thaler Asset Management Inc. 2.96% 3,420,115
Geode Capital Management, LLC 2.70% 3,115,654
Risk Analysis
Beta (Market Risk)
1.97
High volatility — moves more than the market
Short Interest
6.3% of float
Moderate short interest
Debt-to-Equity
0.01x
Conservative balance sheet — low financial risk
Current Ratio
2.76x
Strong liquidity — Graham approved
52-Week Price Range
Low: $10.74 Current: $19.21 High: $21.67
Currently at 77% of 52-week range

LendingClub Corporation (LC) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $18.43. Margin of safety: 0%. Gross profit margin: N/A. Operating margin: N/A. Net margin: 13.6%. Market cap: $2.2B. Sector: Financial Services. Industry: Banks - Regional. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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