| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 563.95 | 5815 |
| Intrinsic value (DCF) | 5.02 | -47 |
| Graham-Dodd Method | 1.66 | -83 |
| Graham Formula | 4.10 | -57 |
OppFi Inc. (NYSE: OPFI) is a leading financial technology company that empowers banks to offer accessible lending solutions through its innovative digital platform. Headquartered in Chicago, Illinois, OppFi specializes in providing installment loans (OppLoan), payroll deduction-secured loans (SalaryTap), and credit card products (OppFi Card) to underserved consumers. Operating in the competitive fintech sector, OppFi leverages advanced technology to streamline loan origination, underwriting, and servicing, ensuring faster approvals and better customer experiences. The company’s mission is to bridge the gap between traditional banking and subprime borrowers, offering transparent and responsible financial products. With a market cap exceeding $1 billion, OppFi is positioned as a key player in the fintech lending space, combining regulatory compliance with scalable digital infrastructure. Its revenue growth and strategic partnerships underscore its relevance in an industry increasingly focused on financial inclusion and digital transformation.
OppFi presents a compelling investment case due to its niche focus on underserved borrowers and its asset-light fintech model, which drives high-margin revenue. The company’s strong operating cash flow ($323.8M in the latest period) and positive net income ($7.26M) reflect efficient operations. However, risks include regulatory scrutiny in the subprime lending space and reliance on bank partnerships for scalability. The high beta (1.631) suggests volatility, but OppFi’s dividend yield (0.12 per share) and growth potential in digital lending may appeal to investors seeking fintech exposure. Diluted EPS of $0.36 indicates profitability, though debt levels ($332M) warrant monitoring.
OppFi’s competitive advantage lies in its proprietary technology platform, which enables seamless loan processing and risk assessment for non-prime borrowers—a segment often overlooked by traditional lenders. Unlike many fintech peers, OppFi partners with banks rather than competing directly, reducing capital requirements and regulatory hurdles. Its OppLoan product differentiates with transparent terms and no hidden fees, addressing criticism of predatory lending in the subprime market. However, OppFi faces stiff competition from both fintech disruptors (e.g., Upstart, LendingClub) and incumbent payday lenders. Its ability to maintain low default rates while scaling SalaryTap’s payroll deduction model is key. OppFi’s tech-driven underwriting could outperform legacy lenders in efficiency but may lag behind AI-powered platforms in risk prediction. The company’s focus on compliance and bank partnerships provides stability but limits agility compared to pure-play fintechs.