NasdaqGS:JRJC

Stock Analysis Report

Executive Summary

China Finance Online Co. Limited; together with its subsidiaries, provides Web-based financial services in the People’s Republic of China and Hong Kong.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has China Finance Online's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

JRJC

4.4%

US Capital Markets

3.4%

US Market


1 Year Return

-61.1%

JRJC

0.5%

US Capital Markets

5.4%

US Market

Return vs Industry: JRJC underperformed the US Capital Markets industry which returned 0.5% over the past year.

Return vs Market: JRJC underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

JRJCIndustryMarket
7 Day3.5%4.4%3.4%
30 Day-15.3%-3.9%-1.0%
90 Day-13.9%-2.0%-0.4%
1 Year-61.1%-61.1%2.7%0.5%7.7%5.4%
3 Year-82.9%-82.9%51.7%43.2%46.2%36.8%
5 Year-86.8%-86.8%77.1%60.9%65.6%47.5%

Price Volatility Vs. Market

How volatile is China Finance Online's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Finance Online undervalued compared to its fair value and its price relative to the market?

0.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate JRJC's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate JRJC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: JRJC is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: JRJC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate JRJC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JRJC is good value based on its PB Ratio (0.5x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is China Finance Online forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.9%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Finance Online has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China Finance Online performed over the past 5 years?

-36.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JRJC is unprofitable, and losses have increased over the past 5 years at a rate of -36.7% per year.

Accelerating Growth: Unable to compare JRJC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JRJC is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (36.2%).


Return on Equity

High ROE: JRJC has a negative Return on Equity (-91.5%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: JRJC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: JRJC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China Finance Online's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: JRJC has a low level of unsold assets or inventory.

Debt Coverage by Assets: JRJC's debt is covered by short term assets (assets are 81231426478881200.309070x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if JRJC has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if JRJC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

Asset Level: JRJC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if JRJC has a sufficient allowance for bad loans.

Low Risk Liabilities: JRJC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if JRJC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: JRJC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if JRJC has an appropriate level of bad loans.


Next Steps

Dividend

What is China Finance Online's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate JRJC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate JRJC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if JRJC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JRJC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JRJC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of China Finance Online's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Zhiwei Zhao (55yo)

14.3yrs

Tenure

0

Zhiwei Zhao has served as Chief Executive Officer of China Finance Online Co. Limited (the “Company”) since June 2005 and Director since July 2005. He was elected as the Chairman of the Board of directors  ...


Board Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

Experienced Board: JRJC's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Zhiwei Zhao (55yo)

    Chairman & CEO

    • Tenure: 14.3yrs
  • Chunbo Li

    Special Assistant to Chief Executive Officer

    • Tenure: 0yrs
  • Julie Zhu

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Zhiwei Zhao (55yo)

    Chairman & CEO

    • Tenure: 14.3yrs
  • Jeff Wang (48yo)

    Director

    • Tenure: 7.4yrs
  • James Chen (54yo)

    Independent Director

    • Tenure: 4.3yrs
  • Jian Wang (56yo)

    Independent Director

    • Tenure: 4.3yrs
  • Yaowei Zhang (56yo)

    Independent Director

    • Tenure: 4.3yrs

Company Information

China Finance Online Co. Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Finance Online Co. Limited
  • Ticker: JRJC
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$17.585m
  • Shares outstanding: 24.42m
  • Website: https://www.chinafinanceonline.com

Number of Employees


Location

  • China Finance Online Co. Limited
  • Fuzhuo Plaza A
  • 17th Floor
  • Beijing
  • 100052
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JRJCNasdaqGS (Nasdaq Global Select)YesSPONS ADR EACH REP 5 COM CNY0.001USUSDOct 2004
FNZDB (Deutsche Boerse AG)YesSPONS ADR EACH REP 5 COM CNY0.001DEEUROct 2004

Biography

China Finance Online Co. Limited; together with its subsidiaries, provides Web-based financial services in the People’s Republic of China and Hong Kong. The company operates through Online Financial Inform ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:56
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.