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.

Risk Analysis

Earnings have declined by -37.33% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($18M)



Snowflake Analysis

Overvalued with worrying balance sheet.


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Baidu

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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

Stable Share Price: JRJC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.8%

JRJC

0.2%

US Capital Markets

0.06%

US Market


1 Year Return

-30.2%

JRJC

17.8%

US Capital Markets

19.4%

US Market

Return vs Industry: JRJC underperformed the US Capital Markets industry which returned 17.8% over the past year.

Return vs Market: JRJC underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

JRJCIndustryMarket
7 Day-6.8%0.2%0.06%
30 Day-0.3%0.2%1.1%
90 Day41.0%6.8%8.9%
1 Year-30.2%-30.2%20.2%17.8%21.9%19.4%
3 Year-78.2%-78.2%38.8%30.9%48.9%39.3%
5 Year-87.5%-87.5%81.4%64.5%71.9%53.1%

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?

0.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Below Fair Value: 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

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 (0.6x) 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?

8.5%

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?

-37.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JRJC is currently unprofitable.

Growing Profit Margin: JRJC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JRJC is unprofitable, and losses have increased over the past 5 years at a rate of -37.3% 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 (8.4%).


Return on Equity

High ROE: JRJC has a negative Return on Equity (-81.56%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


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: Insufficient data to determine if JRJC's debt is covered by short term assets.


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%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average board tenure


CEO

Zhiwei Zhao (55yo)

14.7yrs

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 Members

NamePositionTenureCompensationOwnership
Zhiwei Zhao
Chairman & CEO14.7yrsno data23.47% $4.2m
Jun Wang
Director7.8yrsno data1.84% $329.9k
Zheng Chen
Independent Director4.7yrsno datano data
Jian Wang
Independent Director4.7yrsno datano data
Yaowei Zhang
Independent Director4.7yrsno datano data

4.7yrs

Average Tenure

55yo

Average Age

Experienced Board: JRJC's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$17.900m
  • Shares outstanding: 2.44m
  • 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 Information and Advisory Service, and Other Related Services; and Hong Kong Brokerage Services. It provides online access to securities trading services, wealth management products, and securities investment advisory services to retail investors; and financial database and analytics to institutional investors, including financial, research, academic, and regulatory institutions, as well as financial software products. The company is involved in the operation of Yinglibao, an Internet-based financial platform that integrates wealth management solutions and mutual fund distribution; JRJ mobile app for financial information, securities trading, investment advisory, and wealth management; jrj.com.cn to provide access for wealth management solutions and mutual fund distribution; and jrj.com, a financial information Website. In addition, it provides securities and futures contracts brokerage and related services to its customers, who invest in stocks listed on Hong Kong Stock Exchanges and Clearing Limited; subscription to financial data and information services; and insurance brokerage services. The company offers its products and services to individual investors managing their own money; professional investors, such as institutional investors managing large sums of money on behalf of their clients and high net worth individuals; and other financial professionals, including investment bankers, stock analysts and financial reporters, and middle class individuals. China Finance Online Co. Limited has a strategic partnership agreement with CIFCO Futures Co. Ltd. The company was incorporated in 1998 and is based in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:29
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
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.