Share of SoFi Technologies (SOFI 3.69%) stock fell 21% in January, according to data provided by S&P Global Market Intelligence. It received a downgrade from one analyst, and investors are still concerned about risk even after a stellar earnings report.

SoFi is demonstrating rapid growth and improved profitability

SoFi has been reporting incredible progress in every recent quarterly report. In the 2023 fourth quarter, revenue growth accelerated to 35% year over year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 159% to $181 million. What was probably the most exciting part of the report was that SoFi came through on its promise to deliver a net profit according to generally accepted accounting principles (GAAP). Net income was $48 million and earnings per share (EPS) was $0.02.

There was so much more to like. SoFi continues to bring new customers onto its platform at a fast pace, adding 585,000 new accounts in the fourth quarter, a 44% year-over-year increase, and there were 659,000 new products adopted, a 41% increase.

Its lending segment was strong, with a 34% increase in originations and growth in all three of its categories: comprise personal, student, and home loans. Total deposits increased 19% over last year to $2.9 billion, and management pointed out that 90% of those come from direct deposits, making them sticky and reliable. SoFi became a bank in 2022, and this is feeding into its financial services productivity loop. Its growing, high-quality deposits lower its cost of funding for loans and add to higher net interest income. SoFi's banking segment reported a $129 million profit at a 27% margin.

Is SoFi stock cheap enough to buy?

SoFi stock soared after the report at the end of the month, but it promptly fell back. It got a downgrade earlier in the month, and covering analysts still think that SoFi is a young, unproven company with risk. Despite Wall Street becoming bullish on bank stocks over the past few months, SoFi is still in the "fintech" basket.

At the current price, SoFi stock trades at a price-to-sales ratio of 3.6, which is a bargain for a high-growth stock. Is there risk? Most certainly. But SoFi is managed by a team of experienced leaders who are conservative in their approach while innovative when it comes to the company's model. As SoFi continues to scale and report higher profits, the market should eventually come around, and you might regret not buying at this price.