NYSE:FINV

Stock Analysis Report

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Market Cap

US$2.7b

Last Updated

2021/06/24 00:53 UTC

Data Sources

Company Financials +

Executive Summary

FinVolution Group, an investment holding company, operates an online consumer finance marketplace in the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has FinVolution Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FINV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FINV's weekly volatility has decreased from 18% to 9% over the past year.


Market Performance


7 Day Return

1.4%

FINV

-1.5%

US Consumer Finance

0.5%

US Market


1 Year Return

458.5%

FINV

93.6%

US Consumer Finance

42.6%

US Market

Return vs Industry: FINV exceeded the US Consumer Finance industry which returned 83.1% over the past year.

Return vs Market: FINV exceeded the US Market which returned 39% over the past year.


Shareholder returns

FINVIndustryMarket
7 Day1.4%-1.5%0.5%
30 Day22.9%2.1%1.9%
90 Day37.2%15.4%7.9%
1 Year470.7%458.5%97.5%93.6%44.9%42.6%
3 Year83.4%61.9%64.4%55.6%64.4%54.1%
5 Yearn/a172.7%149.9%128.3%102.7%

Long-Term Price Volatility Vs. Market

How volatile is FinVolution Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FinVolution Group undervalued compared to its fair value and its price relative to the market?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FINV ($9.55) is trading below our estimate of fair value ($17.43)

Significantly Below Fair Value: FINV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FINV is good value based on its PE Ratio (8.4x) compared to the US Consumer Finance industry average (9.3x).

PE vs Market: FINV is good value based on its PE Ratio (8.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: FINV is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FINV is overvalued based on its PB Ratio (2x) compared to the US Consumer Finance industry average (1.8x).


Future Growth

How is FinVolution Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FINV's forecast earnings growth (11.1% per year) is above the savings rate (2%).

Earnings vs Market: FINV's earnings (11.1% per year) are forecast to grow slower than the US market (15.6% per year).

High Growth Earnings: FINV's earnings are forecast to grow, but not significantly.

Revenue vs Market: FINV's revenue (20.7% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: FINV's revenue (20.7% per year) 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 FINV's Return on Equity is forecast to be high in 3 years time


Past Performance

How has FinVolution Group performed over the past 5 years?

54.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FINV has high quality earnings.

Growing Profit Margin: FINV's current net profit margins (27.5%) are lower than last year (30.7%).


Past Earnings Growth Analysis

Earnings Trend: FINV has become profitable over the past 5 years, growing earnings by 54.3% per year.

Accelerating Growth: FINV's earnings growth over the past year (2.6%) is below its 5-year average (54.3% per year).

Earnings vs Industry: FINV earnings growth over the past year (2.6%) underperformed the Consumer Finance industry 77%.


Return on Equity

High ROE: FINV's Return on Equity (24.5%) is considered high.


Financial Health

How is FinVolution Group's financial position?


Financial Position Analysis

Short Term Liabilities: FINV's short term assets (CN¥13.4B) exceed its short term liabilities (CN¥1.2B).

Long Term Liabilities: FINV's short term assets (CN¥13.4B) exceed its long term liabilities (CN¥5.0B).


Debt to Equity History and Analysis

Debt Level: FINV is debt free.

Reducing Debt: FINV has no debt compared to 5 years ago when its debt to equity ratio was 3.8%.

Debt Coverage: FINV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FINV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is FinVolution Group current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FINV's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: FINV's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (3.45%).


Stability and Growth of Payments

Stable Dividend: FINV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FINV has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15%), FINV's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FINV's dividends in 3 years are forecast to be well covered by earnings (16% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Feng Zhang (44 yo)

1.25yrs

Tenure

Mr. Feng Zhang has been the Chief Executive Officer of FinVolution Group (formally known as PPDAI Group Inc.) since March 2020. He was Co-Chief Executive Officer of FinVolution Group (formally known as PPD...


Leadership Team

Experienced Management: FINV's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: FINV's board of directors are considered experienced (3.6 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

FinVolution Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FinVolution Group
  • Ticker: FINV
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$2.706b
  • Shares outstanding: 283.38m
  • Website: https://ir.finvgroup.com

Number of Employees


Location

  • FinVolution Group
  • Building G1
  • No. 999 Dangui Road
  • Shanghai
  • 201203
  • China

Listings


Biography

FinVolution Group, an investment holding company, operates an online consumer finance marketplace in the People’s Republic of China. It operates a fintech platform that connects underserved individual borr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 00:53
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.