In Mesopotamia over 4,000 years ago, farmers rented crop seeds for later payments.
This was the first recorded example of a loan.
Today, financial technology (fintech) has advanced the way we lend and spend money, from setting interest rates to credit cards.
And that technology is constantly evolving.
Using Adam O’Dell’s 6-element Green Zone Rating System, I found a fintech company that is transforming the way banks and merchants lend money to consumers.
we are “strong strongMeans that this FinTech stock is at least ready to outperform the wider market. 3 times in the next 12 months..
And the trend of alternative lending will make this company even more expensive.
Fintech spurs growth in alternative lending
The days of going to your local bank and filling out a series of documents to get a loan are over.
Moreover, banks are no longer the only place to get loans.
Even retailers can offer their customers financing options for purchases (think of financing projects for home improvement projects through stores, not banks).
And fintech companies are expanding these possibilities.
In 2017, approximately 24.5 million loans were issued worldwide through alternative finance.
This year, that number is expected to be close to 34 million. By 2025, approximately 39.5 million loans will be provided through alternative lending, an increase of 60% from 2017.
The transaction value (loan amount) of all alternative loan loans will increase from $ 50 billion in 2017 to $ 99.8 billion in 2025, a total increase of 99.6%.
This means that more people will take out more loans through alternative lending.
This tendency can be given Investor You can make a lot of money by investing in one company.
Alternative Financing Leader: GreenSky Inc.
GreenSky Inc. (Nasdaq: GSKY). Has developed a unique technology to support all lending features for merchants, consumers and banks.
The technology allows banks and merchants to lend to consumers for home renovations, solar power plants, healthcare and more.
The company is Regions Financial Corp. (NYSE: RF) And SunTrust Banks Inc. These banks are home Depot Inc. (NYSE: NYSE:) online or via GreenSky’s mobile app. HD).
In 2020, the company’s total revenue was $ 502.56 million.
GreenSky is expected to report $ 72.4 million in revenue by 2023. This is a 34% increase in annual top-line revenue.
The company does not sell or take out loans with equity capital. Instead, it makes money by charging merchants and banks to service the loans it makes.
GreenSky Stock beats the professional financial industry
GreenSky’s share price has risen 115% in the last 12 months, compared to 24.5% in the broader professional financial industry.
After the company reported a 267% year-on-year increase in earnings per share in the second quarter of 2021, its share price rose 38.3% between July 28 and August 6 this year. A quarter of a year ago.
GreenSky Stock Price Valuation
GreenSky Inc using Adam’s 6-element Green Zone Rating System.teeth 93 in total.. In short, we are “strong bullish” on equities and expect to outperform the wider market. 3 times in the next 12 months..
GreenSky Inc. rates the green on five of the six factors.
- Momentum — GreenSky’s share price has risen steadily after rising 38% in early August.Company earns 97 With momentum.
- size — Green Sky Inc., with a market capitalization of $ 1.6 billion, is at the bottom of the stock we value.It earns 80 With this metric.
- quality — GreenSky has a strong return on assets (including a return on equity of 1,544.6%) compared to the average of less than 10% in other specialized financial industries.Company earns 80 About quality.
- growth — GreenSky’s annual sales increased 62% from $ 326 million in 2017 to $ 527 million in 2020. The company’s three-year annual sales growth rate is almost 18%.It earns 73 With this metric.
- worth — GreenSky’s price-to-price ratio (revenue, sales, and cash flow) is below the industry average.Company earns 70 About value.
Company earns Volatility 39 The 12-month rise in stock prices was due to resistance in early 2021 and trading flat from April to May.
Conclusion: FinTech is changing the way we do business.
From banking and saving money to borrowing for home remodeling, fintech companies continue to guide new ways to provide alternative funding to their customers.
This trend suggests that we will continue to look at alternative lending.
It’s far from renting seeds for crops.
Therefore, GreenSky Inc. Is a stock for reviewing portfolios.
PS My colleague Adam Odel releases his new details Wednesday wind and rain The strategy is live on September 23rd. During a live event, he will show you how a simple two-day deal has surpassed the market 51 times in the last 6 months. Click here to sign up for a live event.
Matt Clark, CMSA®
Survey analyst, Money & Market
Matt Clark is a research analyst Money & Market.. He is a Certified Capital Markets & Securities Analyst at the Corporate Finance Institute and In search of alpha..Before joining Money & Market, He has been a journalist and editor for 25 years, responsible for college sports, business and politics.
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