While most fintech stocks have struggled lately, MoneyLion (NYSE: ML) looks like it may finally be turning a corner. The digital financial services company has seen its shares surge recently, having climbed from under $40 to over $75 in just the past few weeks.
For those who aren’t familiar with MoneyLion, it’s a comprehensive digital financial ecosystem that acts as a one-stop marketplace for consumer banking, lending, investing, and money management tools. The company’s platform connects over 18 million customers with more than 1,200 financial partners, helping everyday Americans access the financial products they need and make smarter money decisions.
Let’s run the stock through The Value Meter to see whether it still has room to run after its eye-popping rebound.
The numbers paint a compelling picture. MoneyLion’s enterprise value-to-net asset value (EV/NAV) ratio sits at just 3.19, a whopping 49% discount on the average of 6.22 for companies with positive net assets. In plain English, you’re paying just $0.51 on the dollar.
The story gets even better when we look at cash generation. Over the past four quarters, MoneyLion’s free cash flow averaged 14.46% of its net assets – nearly double the 7.76% average among companies that consistently generate positive cash flow. This shows that MoneyLion isn’t just cheap; it’s also highly efficient at turning its assets into cash.
The company’s latest results reinforce this strength. In the third quarter, revenue jumped 23% year over year to $135 million, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 83% to $24 million. Even more impressively, the company’s total customer base grew 54% to 18.7 million, proving that its services are resonating with consumers.
Looking ahead, management expects growth to accelerate and is forecasting 34% year-over-year revenue growth in Q4. They’re also making smart moves to expand their ecosystem, including recently launching “MoneyLion Checkout,” which will streamline how customers shop for financial products. This new feature has already shown promising results, with pilot partners seeing 25% higher click-through rates and 150% better conversion rates.
When you combine MoneyLion’s bargain-basement valuation with its impressive cash generation and accelerating growth, you get a stock that looks meaningfully undervalued. While the recent price surge might make some investors nervous, the fundamentals suggest there’s still substantial upside ahead.
For investors who are willing to look past the recent volatility and focus on the company’s strong fundamentals, this fintech player could offer compelling value at current levels.
The Value Meter rates MoneyLion as “Slightly Undervalued,” but it’s bordering on “Extremely Undervalued.”
What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.
