Jiayin Group (NasdaqGM:JFIN): Evaluating Valuation After Strong Third-Quarter Earnings and Profit Growth

Jiayin Group (JFIN) just posted third quarter 2025 results that caught investors attention, with net income jumping sharply and sales ticking higher compared to last year, underscoring how its lending platform is scaling profitably.

See our latest analysis for Jiayin Group.

The market has not fully rewarded that progress yet. The share price is $6.76, and a steep 3 month share price return of minus 44.73 percent contrasts with a powerful 3 year total shareholder return of 309.48 percent. This suggests that long term momentum remains very much intact.

If Jiayin’s story has you rethinking growth potential and risk, this is also a good moment to scout fast growing stocks with high insider ownership as possible next candidates for your watchlist.

With profits racing ahead while the share price has stumbled, Jiayin looks statistically cheap on recent earnings. But is this a genuine mispricing to act on, or simply markets correctly factoring in future growth?

Price-to-Earnings of 1.5x: Is it justified?

Jiayin Group’s valuation looks striking, with a price-to-earnings ratio of just 1.5 times at a last close of $6.76, far below peers. This implies the market is heavily discounting its current earnings power.

The price-to-earnings ratio compares what investors pay for each dollar of profit, and for a profitable consumer finance platform like Jiayin it is a key yardstick of how the market values its lending engine and risk profile.

On this measure, Jiayin screens as inexpensive compared to both specific peers and the wider US Consumer Finance space. This suggests investors may be underpricing its recent profit growth and high return on equity relative to similar businesses.

The gap is not small. Jiayin trades on 1.5 times earnings versus a peer average of 3.7 times and a US Consumer Finance industry average of 10 times, a deep discount that could indicate the market is either overestimating potential headwinds or underappreciating the scalability of its current profitability.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 1.5x (UNDERVALUED)

However, if sentiment is positive, investors still face key risks, including tighter credit regulation in China and any deterioration in Jiayin’s loan performance metrics.

Find out about the key risks to this Jiayin Group narrative.

Another View: Discounted Cash Flow Indicates Even Deeper Value

Our DCF model presents an even starker picture than the low 1.5 times earnings ratio. With Jiayin at $6.76 versus an estimated fair value of $49.82, it appears heavily undervalued. This raises the question: is the market mispricing rapid earnings growth, or bracing for a sharp slowdown?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Jiayin Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 925 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Jiayin Group Narrative

If this view does not quite fit your thinking, or you prefer hands on research, you can shape a personalized narrative in minutes: Do it your way.

A great starting point for your Jiayin Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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