SoFi: A Neobank For The Next Decade

Nov. 29, 2022 9:47 AM ETSoFi Technologies, Inc. (SOFI)11 Comments

Summary

  • Despite a worsening macro-environment, SoFi's core metrics reflect the robust business fundamentals of the company.
  • The company remains well-positioned to navigate the impending crisis, supported by a high FICO borrower base and a well-capitalized capital base.
  • Debt securities classification between AFS and HTM directly affects regulatory capital, and SoFi might designate a partial transfer from AFS to HTM to shield its loan portfolio.
  • The student loan forgiveness will likely not severely impact the company, given the loan profile.
  • We're currently running a sale at my private investing ideas service, Yiazou Capital Research, where members get access to portfolios, market alerts, real-time chat, and more. Learn More »
Pixelated us paper currency on dark background

dem10

Investment Thesis

SoFi Technologies, Inc. (NASDAQ:SOFI), along with other growth names, have eventually faced reality, and the stock now trades below its book value per share. As a result, SOFI could move sideways and is also exposed to further drop until the

Author of Yiazou Capital Research

Unlock your investment potential through deep business analysis.

I am the founder of Yiazou Capital Research, a research platform designed to elevate your due diligence process through in-depth analysis of businesses.

I have previously worked for Deloitte and KPMG in external auditing, internal auditing, and consulting.

I am a Chartered Certified Accountant and an ACCA Global member, and I hold BSc and MSc degrees from leading UK business schools.

In addition to my research platform, I am also the founder of a private business.

This article was written by

Yiannis Zourmpanos profile picture
2.48K Followers
Unlock your investment potential through deep business analysis.

I am the founder of Yiazou Capital Research, a research platform designed to elevate your due diligence process through in-depth analysis of businesses.

I have previously worked for Deloitte and KPMG in external auditing, internal auditing, and consulting.

I am a Chartered Certified Accountant and an ACCA Global member, and I hold BSc and MSc degrees from leading UK business schools.

In addition to my research platform, I am also the founder of a private business.

My primary strategy focuses on high-quality, free cash flow generative stocks with an above-average growth rate and a strong business moat.

I manage my own highly concentrated portfolio, and I occasionally engage in short-term trades to profit from asset mispricings when Mr. Market does not feel very well. 

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

Recommended For You

Comments (11)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.