NEW YORK, NY / ACCESSWIRE / March 28, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on IEG Holdings Corporation (IEGH).
The report is available here: IEGH March 2017 Update Note.
IEG Holdings Corporation (IEGH) provides online unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website, www.mramazingloans.com, in 19 US states. The company offers $5,000 and $10,000 personal loans over a five-year term at 19.9% to 29.9% APR. IEG Holdings plans future expansion to a total of 25 US states by mid-2017, which would cover 240mn people and represent approximately 75% of the US population.
Since 2013, IEGH has obtained additional state lending licenses, and they are now licensed and originating direct consumer loans in 19 states including: Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah and Virginia. The Company was founded in 2010 and is headquartered in Las Vegas, Nevada.
Highlights from the note are as follows:
IEGH releases 2016 results
IEGH released 2016 full year results in March 2017, which showed 16% YoY topline growth led by increased interest revenues and bolstered by a growing consumer loan book. EPS declined in 2016, due to cost rationalizations at the end of the year as well as an increase in shares outstanding. Net loss for 2016 was ($4.8mn) versus ($5.7mn) in 2015. EPS was a loss of ($0.60), versus ($2.52) in 2015. Loan volume continued to rise in 2016. Indeed, IEGH noted that cumulative loan volume has increased by 29.5% from $10,989,023 in January 2016 to $14,234,023 as of February 28, 2017. Key factors enabling loan growth include customers acquired by www.mramazingloans.com, low acquisition costs, and continued expansion of state licenses. Management has outlined a target of expanding to 25 states and covering 75% of the population in 2017.
IEGH loan volume continues to rise
IEGH continues to expand its consumer loan book. According the company's results release, since January 2015, cumulative loan volume has increased from $5.5mn $14.2mn as of February 28, 2017. In our view, loan volume provides key insights into the health of IEGH's business, as it is a driver of revenue and potential profitability.
IEGH provides update to guidance, OneMain, and other strategic actions
As part of the results announcement, IEGH stated that the company would incur a loss and negative cash flow in 1Q17 due to the cost of its tender offer for OneMain Holdings, Inc. (NYSE:OMF), a multi-billion dollar NYSE listed provider of consumer finance and insurance solutions. The company extended its offer to May 5, 2017, and noted that as of March 24, 2017, the offer had resulted in 6,348 shares validly tendered and not properly withdrawn. IEGH management also reiterated its plans to issue a small dividend following the release of 1Q17, in May 2017, as well as a recurring dividend going forward. Additionally, the company's Board approved a buyback of up to $2mn, although no transactions would take place until after the close or expiration of the OneMain offer.
Price target of $10.50 for IEGH
Our price target for IEGH is $10.50. IEGH is a high risk, high potential reward company in the consumer finance sector. IEGH has several potential catalysts including growth, guidance for profitability in 2017, and ongoing strategic corporate finance initiatives.
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About IEGH Holdings Corporation
IEG Holdings Corporation (IEGH) ("IEG Holdings") provides online unsecured consumer loans under the brand name, "Mr. Amazing Loans," via its website, www.mramazingloans.com, in 19 US states. IEG Holdings offers $5,000 and $10,000 loans over a term of five years at a 19.9% to 29.9% APR. IEG Holdings plans future expansion to 25 US states by mid-2017. For more information about IEG Holdings, visit www.investmentevolution.com.
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