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OppFi Skyrockets 348% in a Year: Is This the Right Time to Invest?
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Key Takeaways
OPFI shares skyrocketed 348.1% in a year, far outperforming its industry, and rivals GDOT and DLO.
Improved credit quality, with the net charge-off rate moving down 1300 bps y/y, boosted OPFI's Q1 results.
OPFI trades at 10.85X forward EPS and 7.09X EV/EBITDA, which are well below the industry's average valuation.
OppFi Inc. (OPFI - Free Report) shares have skyrocketed 348.1% in a year, outperforming the 29.2% rise of its industry and the 13.4% rally in the Zacks S&P 500 Composite.
OPFI performed significantly better than its industry peers, Green Dot (GDOT - Free Report) and DLocal Limited (DLO - Free Report) . GDOT has declined 1.9%, while DLO shares have rallied 39% in a year.
1-Year Price Performance
Image Source: Zacks Investment Research
OppFi has also outperformed its Green Dot, DLocal and the industry as a whole in the past six months. OPFI shares have surged 100.1%, outperforming the industry’s 8.1% growth. Meanwhile, Green Dot and DLocal have declined by 10.5% and 6.3%, respectively.
Investors may initiate a buy on OPFI shares if the rise over the past year and the past six months is appealing to them. Let us analyze the stock and find out whether buying the stock now is a sound decision.
OPFI: Better Credit Quality & Risk Management
OppFi’s performance in the first quarter of 2025 demonstrates enhanced credit quality and improved risk management strategies. A key indicator of this improvement is the reduction in the net charge-off rate as a percentage of total revenues. This metric experienced an approximate decline of 700 basis points (bps) from the preceding quarter and a 1300 bps decrease from the same quarter last year. This significant decline implies fewer uncollectible loans relative to the top line, directly boosting the bottom line.
As a tech-based credit provider, OPFI’s successful efforts to refine its approach to credit risk contribute to this positive trend. Management stated that the company has been improving credit modeling through advanced ML models. By doing this, the models are becoming better at enhancing risk assessment, addressing charge-off risks and serving high-quality borrowers.
An improvement in the auto-approval rate to 79% in the first quarter of 2025 from 73% in the same quarter last year is impressive. This demonstrates that the company’s initial screening process is more effective and is expected to contribute to lower charge-off rates. OppFi aims to maintain a disciplined growth rate and a healthy loan portfolio, resulting from higher loan demand and borrowers consistently meeting their obligations.
OPFI Stock Trade Cheaper Than Industry
OppFi shares are undervalued and appealing to investors. The stock is priced at 10.85 times forward 12-month earnings per share, which is lower than the industry’s average of 23.67 times.
Image Source: Zacks Investment Research
When looking at the trailing 12-month EV-to-EBITDA ratio, OPFI is trading at 7.09 times, below the industry’s average of 14.06 times.
Image Source: Zacks Investment Research
OppFi’s Robust Liquidity Position
A peek at OPFI’s current ratio at the end of the first quarter of 2025 should reassure investors about the company’s strong liquidity position. In the quarter, the metric hovered at 1.73, an improvement from the preceding quarter’s 1.61 and the year-ago quarter’s 1.56. Apart from this rise, the metric outpaced the industry average of 1.15. The current ratio stays above 1, indicating that the company can easily pay off its short-term obligations.
Image Source: Zacks Investment Research
OPFI’s Impressive Top & Bottom-Line Prospects
The Zacks Consensus Estimate for OppFi’s 2025 revenues is $578.4 million, implying 10% year-over-year growth. For 2026, the top line is anticipated to rise 6.9%.
The consensus estimate for OPFI’s 2025 earnings per share stands at $1.23, suggesting a 29.5% year-over-year increase. For 2026, the bottom line is anticipated to rise 14.2%.
Verdict: Hurry & Buy OPFI Now
OppFi’s improved credit quality and risk management strategy are instrumental to its growth narrative. With the net charge-off rate as a percentage of revenues and auto-approval rates improving, one can easily conclude that the company is an efficient credit provider with an effective business model. It does not end here; OPFI, with a strong liquidity position, is a fundamentally strong stock and possesses a discounted valuation.
These factors add to the company’s long-term growth trajectory, compelling us to suggest investors add this stock to their portfolio right now.
Image: Bigstock
OppFi Skyrockets 348% in a Year: Is This the Right Time to Invest?
Key Takeaways
OppFi Inc. (OPFI - Free Report) shares have skyrocketed 348.1% in a year, outperforming the 29.2% rise of its industry and the 13.4% rally in the Zacks S&P 500 Composite.
OPFI performed significantly better than its industry peers, Green Dot (GDOT - Free Report) and DLocal Limited (DLO - Free Report) . GDOT has declined 1.9%, while DLO shares have rallied 39% in a year.
1-Year Price Performance
OppFi has also outperformed its Green Dot, DLocal and the industry as a whole in the past six months. OPFI shares have surged 100.1%, outperforming the industry’s 8.1% growth. Meanwhile, Green Dot and DLocal have declined by 10.5% and 6.3%, respectively.
Investors may initiate a buy on OPFI shares if the rise over the past year and the past six months is appealing to them. Let us analyze the stock and find out whether buying the stock now is a sound decision.
OPFI: Better Credit Quality & Risk Management
OppFi’s performance in the first quarter of 2025 demonstrates enhanced credit quality and improved risk management strategies. A key indicator of this improvement is the reduction in the net charge-off rate as a percentage of total revenues. This metric experienced an approximate decline of 700 basis points (bps) from the preceding quarter and a 1300 bps decrease from the same quarter last year. This significant decline implies fewer uncollectible loans relative to the top line, directly boosting the bottom line.
As a tech-based credit provider, OPFI’s successful efforts to refine its approach to credit risk contribute to this positive trend. Management stated that the company has been improving credit modeling through advanced ML models. By doing this, the models are becoming better at enhancing risk assessment, addressing charge-off risks and serving high-quality borrowers.
An improvement in the auto-approval rate to 79% in the first quarter of 2025 from 73% in the same quarter last year is impressive. This demonstrates that the company’s initial screening process is more effective and is expected to contribute to lower charge-off rates. OppFi aims to maintain a disciplined growth rate and a healthy loan portfolio, resulting from higher loan demand and borrowers consistently meeting their obligations.
OPFI Stock Trade Cheaper Than Industry
OppFi shares are undervalued and appealing to investors. The stock is priced at 10.85 times forward 12-month earnings per share, which is lower than the industry’s average of 23.67 times.
When looking at the trailing 12-month EV-to-EBITDA ratio, OPFI is trading at 7.09 times, below the industry’s average of 14.06 times.
OppFi’s Robust Liquidity Position
A peek at OPFI’s current ratio at the end of the first quarter of 2025 should reassure investors about the company’s strong liquidity position. In the quarter, the metric hovered at 1.73, an improvement from the preceding quarter’s 1.61 and the year-ago quarter’s 1.56. Apart from this rise, the metric outpaced the industry average of 1.15. The current ratio stays above 1, indicating that the company can easily pay off its short-term obligations.
OPFI’s Impressive Top & Bottom-Line Prospects
The Zacks Consensus Estimate for OppFi’s 2025 revenues is $578.4 million, implying 10% year-over-year growth. For 2026, the top line is anticipated to rise 6.9%.
The consensus estimate for OPFI’s 2025 earnings per share stands at $1.23, suggesting a 29.5% year-over-year increase. For 2026, the bottom line is anticipated to rise 14.2%.
Verdict: Hurry & Buy OPFI Now
OppFi’s improved credit quality and risk management strategy are instrumental to its growth narrative. With the net charge-off rate as a percentage of revenues and auto-approval rates improving, one can easily conclude that the company is an efficient credit provider with an effective business model. It does not end here; OPFI, with a strong liquidity position, is a fundamentally strong stock and possesses a discounted valuation.
These factors add to the company’s long-term growth trajectory, compelling us to suggest investors add this stock to their portfolio right now.
OPFI flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.