SOFI SoFi Technologies Inc

SoFi Technologies operates a digital personal finance platform offering student loan refinancing, mortgages, personal loans, investing, and banking services targeting younger consumers. Sector: Financials.

SoFi Technologies Inc (SOFI) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Assessing the quality of returns on invested capital, ROIC is 4.01%, WACC is 16.67%, and the economic spread is -12.66%. On balance, the company is not clearing their capital cost hurdle, meaning reinvestment may be diluting rather than compounding value. Supporting metrics show ROE at 5.89% and ROA at 1.12%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

The market currently prices the company at trailing P/E of 41.41, forward P/E of 26.34, PEG of 0.69. Trailing P/E is materially above forward P/E — a spread that typically signals expected earnings growth and a company that is cheaper on a forward basis than it first appears. The PEG ratio points to a company where growth is not yet fully priced in — a setup that historically tends to be favorable for forward returns. The current ratio of 1.18 is below average, suggesting some the company may face tighter short-term financial conditions. Valuation and liquidity together frame a company where the price paid today is a reasonable bet on earnings delivery — but not a margin-of-safety purchase at current levels.

Looking at margins from gross to free cash flow, gross margin sits at 83.00%, operating margin at 14.68%, and free cash flow margin at -110.52%. The gross margin here is a standout, pointing to businesses with durable unit economics and limited commodity exposure. Modest operating margins indicate that while revenues are being generated, converting them to earnings is less efficient. The company's cash conversion is poor at this level — a sign of capital-intensive or loss-making businesses across much of the company. Margins indicate a company that is operating effectively in some areas while still showing efficiency gaps in others.

Projected 12-month EPS growth of 57.2% adds a powerful forward signal — analyst consensus expects earnings to accelerate materially, which, if delivered, could make current multiples look increasingly modest. Turning to growth and analyst expectations, TTM revenue growth of 40.21% pointing to sustained and broad-based revenue growth within the company, while the estimated 12-month price change of 61.77%, where analyst targets indicate a strong re-rating opportunity from current prices. The distinction matters: revenue growth tells you what the company are doing, price targets tell you what analysts think the market will pay for it. Ultimately, the alignment between revenue momentum and analyst targets will depend on execution quality and the broader rate and sentiment environment. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Taken together, the metrics present a favorable setup — not without risk, but with enough quality and momentum to support a positive view.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.