NasdaqCM:WINS

Stock Analysis Report

Executive Summary

Wins Finance Holdings Inc., through its subsidiaries, provides financing solutions for small and medium enterprises in the People’s Republic of China.

Snowflake

Fundamentals

Moderate growth potential and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.4%

WINS

0.8%

US Capital Markets

0.4%

US Market


1 Year Return

-67.2%

WINS

8.7%

US Capital Markets

13.1%

US Market

Return vs Industry: WINS underperformed the US Capital Markets industry which returned 8.7% over the past year.

Return vs Market: WINS underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

WINSIndustryMarket
7 Day2.4%0.8%0.4%
30 Day0.8%6.1%4.0%
90 Day19.0%8.4%7.4%
1 Year-67.2%-67.2%11.2%8.7%15.6%13.1%
3 Year-91.9%-91.9%42.9%34.7%48.2%38.6%
5 Yearn/a75.1%58.8%62.6%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wins Finance Holdings undervalued compared to its fair value and its price relative to the market?

53.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WINS ($11.47) is trading above our estimate of fair value ($7.11)

Significantly Below Fair Value: WINS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WINS is poor value based on its PE Ratio (53.1x) compared to the Capital Markets industry average (39.2x).

PE vs Market: WINS is poor value based on its PE Ratio (53.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WINS is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (6.5x).


Next Steps

Future Growth

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

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WINS's forecast earnings growth (35.6% per year) is above the savings rate (2.7%).

Earnings vs Market: WINS's earnings (35.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if WINS's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if WINS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WINS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wins Finance Holdings performed over the past 5 years?

-13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WINS has large one-off items impacting its financial results.

Growing Profit Margin: WINS's current net profit margins (19.6%) are lower than last year (84.1%).


Past Earnings Growth Analysis

Earnings Trend: WINS's earnings have declined by -13.2% per year over the past 5 years.

Accelerating Growth: WINS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WINS had negative earnings growth (-76.9%) over the past year, making it difficult to compare to the Capital Markets industry average (21%).


Return on Equity

High ROE: WINS's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wins Finance Holdings'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: WINS has a low level of unsold assets or inventory.

Debt Coverage by Assets: WINS's debt is covered by short term assets (assets are 22.4x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Wins Finance Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate WINS'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 WINS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WINS'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 WINS'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 Wins Finance Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Renhui Mu (48yo)

2.6yrs

Tenure

0

Mr. Renhui Mu has been Chairman and Chief Executive Officer of Wins Finance Holdings Inc., since April 3, 2017. Mr. Mu has been the Chief Operating Officer at Wins Finance Holdings Inc. since October 2013  ...


Board Age and Tenure

2.3yrs

Average Tenure

42yo

Average Age

Experienced Board: WINS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

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


Management Team

  • Renhui Mu (48yo)

    Chairman

    • Tenure: 2.6yrs
  • Junfeng Zhao (49yo)

    CFO & Director

    • Tenure: 2.6yrs
    • Compensation: US$5.03k

Board Members

  • Renhui Mu (48yo)

    Chairman

    • Tenure: 2.6yrs
  • Junfeng Zhao (49yo)

    CFO & Director

    • Tenure: 2.6yrs
    • Compensation: US$5.03k
  • Xiaofeng Zhong (40yo)

    Independent Director

    • Tenure: 2.3yrs
  • Shihai Wang (42yo)

    Independent Director

    • Tenure: 2.3yrs
  • Weiqi Chen (34yo)

    Independent Director

    • Tenure: 2.3yrs

Company Information

Wins Finance Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wins Finance Holdings Inc.
  • Ticker: WINS
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$227.488m
  • Shares outstanding: 19.84m
  • Website: https://www.winsholdings.com

Number of Employees


Location

  • Wins Finance Holdings Inc.
  • Building 7
  • 1st Floor
  • Beijing
  • Beijing Province
  • 100024
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WINSNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDOct 2015

Biography

Wins Finance Holdings Inc., through its subsidiaries, provides financing solutions for small and medium enterprises in the People’s Republic of China. It offers financial guarantees, as well as financial l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:15
End of Day Share Price2019/11/13 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.