| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 100.90 | 192 |
| Intrinsic value (DCF) | 13.45 | -61 |
| Graham-Dodd Method | 0.40 | -99 |
| Graham Formula | n/a |
LendInvest plc (LINV.L) is a leading UK-based property finance asset manager specializing in short-term, development, and buy-to-let mortgages for intermediaries, landlords, and developers. Founded in 2012 and headquartered in London, the company operates in the competitive UK mortgage market, offering tailored financing solutions alongside fund management services. LendInvest differentiates itself through a tech-driven approach, streamlining mortgage applications and underwriting processes to enhance efficiency. The company plays a crucial role in the UK's financial services sector, particularly in bridging gaps in property financing for small- to medium-sized developers and landlords. With a market cap of approximately £43.5 million, LendInvest remains a niche but innovative player in the UK's mortgage lending landscape.
LendInvest presents a high-risk, high-reward investment opportunity due to its niche focus on UK property finance. The company reported a net loss of £20.1 million in its latest fiscal year, reflecting challenges in profitability despite £85.1 million in revenue. However, positive operating cash flow (£28.6 million) suggests underlying operational efficiency. The low beta (0.26) indicates relative stability compared to broader financial markets, but high total debt (£516.9 million) and negative EPS (-£0.15) raise concerns about leverage and earnings sustainability. Investors should weigh LendInvest's innovative platform and market positioning against its financial struggles and exposure to UK property market volatility.
LendInvest competes in the UK's fragmented property finance market, leveraging technology to differentiate itself from traditional lenders. Its competitive advantage lies in faster loan processing and a focus on underserved segments like small-scale developers and landlords. However, the company faces intense competition from larger banks and specialized lenders. While its asset-light model reduces overhead, reliance on intermediary networks limits direct customer relationships. LendInvest's fund management arm provides diversification but remains small compared to established asset managers. The company's ability to scale profitably amid rising interest rates and economic uncertainty will be critical to maintaining its niche position. Its tech-driven approach offers efficiency gains but may not be sufficient to offset funding cost disadvantages versus larger competitors with stronger balance sheets.