Stock on Focus: On Deck Capital, Inc. (ONDK)

Company Profile:

On Deck Capital, Inc. is an online platform for small business lending. The Company aggregates and analyzes data points from disparate data sources to assess the creditworthiness of small businesses. Small businesses apply for a term loan or line of credit on the Company’s Website and, using its OnDeck Score, the Company makes a funding decision and transfers the funds. The Company offers two products to small businesses to access capital: term loans and lines of credit. The Company’s end-to-end integrated platform includes the Company’s Website, which allows small businesses to apply for a loan in minutes, around the clock; data and analytics engine, analyzes thousands of data attributes from disparate sources to assess the real-time creditworthiness of a small business; the technology, which offers seamless funding of loans, and daily and weekly collections and ongoing servicing system. The company was incorporated in 2006 and is headquartered in New York, New York.

Recent News:

On April 11, 2016, the company and Minor League Baseball announced the renewal of their successful partnership on behalf of the nation’s small business owners.

The company will report financial results for the first quarter ended March 31, 2016 on Monday, May 2, 2016, after the market close. The company will host a conference call to discuss the results at 5:00 p.m. ET that same day.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ONDK’s strengths can be seen in its better growth, better efficiency and strong Solvency compared with its peers. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator. RSI is increasing to 56.54. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry. We rate On Deck Capital, Inc. (ONDK) a BUY.