Jiayin Group (NasdaqGM:JFIN) Margins Jump to 26.2%, Reinforcing Bullish Profitability Narratives

Jiayin Group (NasdaqGM:JFIN) posted total revenue of ¥1.47 billion and basic EPS of ¥7.34 for the third quarter of 2025, accompanied by a net income of ¥376.49 million. The company has seen revenue move from ¥1.44 billion in Q3 2024 to ¥1.47 billion in Q3 2025, while EPS climbed from ¥5.07 to ¥7.34 over the same period. These results point to expanding margins and a favorable profit backdrop heading into the next reporting cycle.

See our full analysis for Jiayin Group.

Next up, we’re comparing these headline numbers with the wider narratives in the market to see which stories hold true and which may need a rethink.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Reach 26.2%, Outpacing Long-Term Averages

• Net profit margin rose to 26.2% over the past twelve months, significantly higher than the 19.2% margin recorded one year earlier. This highlights impressive profitability gains within the period.
• Notably, this margin expansion strongly supports the view that Jiayin Group’s business model is delivering high-quality earnings.
  • Earnings climbed 48.9% year-over-year, topping the company’s own five-year average growth rate of 29.7% and underlining operational improvements.
  • Bulls assert that sustaining such strong margin quality puts Jiayin ahead of sector peers, lending credibility to longer-term growth potential anchored in enhanced profitability.

Price-to-Earnings at 1.6x Flags Deep Discount

• Jiayin shares currently trade at a price-to-earnings ratio of 1.6x, far below both the peer average of 3.7x and the US Consumer Finance industry average of 10.2x. This suggests the stock is valued at a significant discount relative to comparable companies.
• Prevailing analysis contends that this deep discount is not fully explained by results or risks, creating debate around whether valuation multiples will revert.
  • The company’s current price also sits almost 85.5% under its DCF fair value of ¥49.81, despite robust profit margins and growth outpacing the past.
  • Yet, the low P/E may partly reflect market pricing in a history of unstable dividend payments, which some argue has weighed on sentiment for income-seeking investors.

Consensus says this combination of strong profitability and rock-bottom valuations invites a closer look at how Jiayin’s story lines up against industry benchmarks and investor caution. 📊 Read the full Jiayin Group Consensus Narrative.

Earnings Growth Sustains Momentum Despite Revenue Dip

• Despite trailing twelve-month revenue of ¥6.54 billion being only slightly higher than last year’s ¥6.00 billion, net income surged from ¥1.15 billion to ¥1.71 billion. This marks a significant increase in profitability even as top-line growth moderated.
• Consensus narrative points out Jiayin is extracting greater bottom-line value from each yuan of revenue, directly challenging worries that slowing revenue momentum might translate into weaker profits.
  • EPS on a trailing twelve-month basis jumped to ¥32.50, up from ¥21.61 last year, confirming that higher margins are translating to durable per-share gains.
  • This earnings leverage demonstrates that efficiency, rather than purely sales expansion, is driving the earnings engine and could offset cyclical swings in future quarters.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Jiayin Group's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

While Jiayin’s margins are improving, inconsistent revenue growth and concerns about dividend stability may leave income-focused investors hesitant about future returns.

If you’re seeking stronger, more reliable payouts, discover these 1948 dividend stocks with yields > 3% to target companies delivering higher yields and dependable income streams.

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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