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PPDAI Group

NYSE:PPDF
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PPDF
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

PPDAI Group Inc., an investment holding company, operates an online consumer finance marketplace through its platform in the People’s Republic of China. The last earnings update was 61 days ago. More info.


Add to Portfolio Compare Print
  • PPDAI Group has significant price volatility in the past 3 months.
PPDF Share Price and Events
7 Day Returns
4.9%
NYSE:PPDF
0.9%
US Consumer Finance
0.6%
US Market
1 Year Returns
1.8%
NYSE:PPDF
12.3%
US Consumer Finance
4.7%
US Market
PPDF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PPDAI Group (PPDF) 4.9% 12% -18.1% 1.8% - -
US Consumer Finance 0.9% 4% 8.4% 12.3% 63.9% 32.2%
US Market 0.6% 4.2% 2.7% 4.7% 38% 43.5%
1 Year Return vs Industry and Market
  • PPDF underperformed the Consumer Finance industry which returned 12.3% over the past year.
  • PPDF underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

PPDF Value

 Is PPDAI Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PPDAI Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PPDAI Group.

NYSE:PPDF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= CN¥33.57 * 25.6%
CN¥8.61
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. CN¥33.57
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PPDF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.696 (1 + (1- 25%) (1.52%))
0.802
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.802 * 5.96%)
7.51%

Discounted Cash Flow Calculation for NYSE:PPDF using Excess Returns Model Model

The calculations below outline how an intrinsic value for PPDAI Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:PPDF Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (25.6% – 7.51%) * CN¥33.57)
CN¥6.09
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥6.09 / (7.51% - 2.73%)
CN¥127.43
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥33.57 + CN¥127.43
CN¥161.01
NYSE:PPDF Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NYSE:PPDF)
0.145
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥161.01 x 0.145
$23.4
Value per share (USD) From above. $23.40
Current discount Discount to share price of $4.47
= -1 x ($4.47 - $23.40) / $23.40
80.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PPDAI Group is available for.
Intrinsic value
>50%
Share price is $4.47 vs Future cash flow value of $23.4
Current Discount Checks
For PPDAI Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PPDAI Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • PPDAI Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PPDAI Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PPDAI Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PPDF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥9.13
NYSE:PPDF Share Price ** NYSE (2019-07-12) in USD $4.47
NYSE:PPDF Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.881 CN¥30.76
United States of America Consumer Finance Industry PE Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 9.89x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PPDAI Group.

NYSE:PPDF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PPDF Share Price ÷ EPS (both in CNY)

= 30.76 ÷ 9.13

3.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPDAI Group is good value based on earnings compared to the US Consumer Finance industry average.
  • PPDAI Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does PPDAI Group's expected growth come at a high price?
Raw Data
NYSE:PPDF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
0.8%per year
United States of America Consumer Finance Industry PEG Ratio Median Figure of 23 Publicly-Listed Consumer Finance Companies 0.71x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:PPDF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.37x ÷ 0.8%

4.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPDAI Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PPDAI Group's assets?
Raw Data
NYSE:PPDF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥20.96
NYSE:PPDF Share Price * NYSE (2019-07-12) in USD $4.47
NYSE:PPDF Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.881 CN¥30.76
United States of America Consumer Finance Industry PB Ratio Median Figure of 40 Publicly-Listed Consumer Finance Companies 1.42x
United States of America Market PB Ratio Median Figure of 5,239 Publicly-Listed Companies 1.81x
NYSE:PPDF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PPDF Share Price ÷ Book Value per Share (both in CNY)

= 30.76 ÷ 20.96

1.47x

* Primary Listing of PPDAI Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPDAI Group is overvalued based on assets compared to the US Consumer Finance industry average.
X
Value checks
We assess PPDAI Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. PPDAI Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PPDF Future Performance

 How is PPDAI Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PPDAI Group expected to grow at an attractive rate?
  • PPDAI Group's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PPDAI Group's earnings growth is positive but not above the United States of America market average.
  • PPDAI Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PPDF Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PPDF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 0.8%
NYSE:PPDF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 9.6%
United States of America Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 5.4%
United States of America Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 7.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PPDF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PPDF Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 7,069 2,593 1
2020-12-31 5,612 2,276 4
2019-12-31 5,461 2,073 2
NYSE:PPDF Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 5,107 2,272 2,733
2018-12-31 4,604 1,885 2,469
2018-09-30 4,058 1,339 391
2018-06-30 4,204 1,760 -537
2018-03-31 4,229 3,166 -1,266
2017-12-31 3,943 3,409 -1,990
2017-09-30 3,533 3,666 -669
2017-06-30 2,650 2,295 -329
2017-03-31 1,762 813 -148
2016-12-31 1,269 1,088 -61
2016-09-30 800 271 -143

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PPDAI Group's earnings are expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
  • PPDAI Group's revenue is expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PPDF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from PPDAI Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PPDF Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 8.41 9.72 7.10 2.00
2020-12-31 7.35 8.45 6.26 4.00
2019-12-31 6.92 6.92 6.92 1.00
NYSE:PPDF Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 9.13
2018-12-31 8.24
2018-09-30 1.39
2018-06-30 -2.24
2018-03-31 -6.40
2017-12-31 -12.76
2017-09-30 -5.03
2017-06-30 -2.47
2017-03-31 -1.11
2016-12-31 -0.46
2016-09-30 -1.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PPDAI Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess PPDAI Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PPDAI Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PPDF Past Performance

  How has PPDAI Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PPDAI Group's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PPDAI Group has delivered over 20% year on year earnings growth in the past 5 years.
  • PPDAI Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • PPDAI Group has become profitable in the last year making it difficult to compare the US Consumer Finance industry average.
Earnings and Revenue History
PPDAI Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PPDAI Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PPDF Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,106.70 2,733.21 1,596.89 13.12
2018-12-31 4,603.76 2,469.07 1,518.76
2018-09-30 4,058.26 391.04 1,445.53 74.61
2018-06-30 4,204.30 -537.00 1,448.46 74.61
2018-03-31 4,229.24 -1,266.33 1,396.26 74.61
2017-12-31 3,942.82 -1,990.49 1,376.96
2017-09-30 3,532.54 -668.70 1,104.06
2017-06-30 2,650.42 -329.12 870.99
2017-03-31 1,762.37 -147.82 694.46
2016-12-31 1,268.65 -60.53 590.76
2016-09-30 799.85 -142.53 480.36
2015-12-31 201.76 -180.93 241.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PPDAI Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • PPDAI Group used its assets more efficiently than the US Consumer Finance industry average last year based on Return on Assets.
  • PPDAI Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess PPDAI Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PPDAI Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PPDF Health

 How is PPDAI Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PPDAI Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PPDAI Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PPDAI Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PPDAI Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 579.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PPDAI Group Company Filings, last reported 3 months ago.

NYSE:PPDF Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,322.31 25.00 3,351.39
2018-12-31 5,985.74 25.00 3,310.82
2018-09-30 5,289.44 29.95 3,489.15
2018-06-30 4,829.54 29.95 3,925.59
2018-03-31 4,260.86 459.45 3,738.15
2017-12-31 3,682.19 0.00 3,850.04
2017-09-30 2,365.14 0.00 2,215.00
2017-06-30 1,821.86 0.00 1,482.32
2017-03-31 1,188.87 0.00 990.44
2016-12-31 772.22 0.00 664.68
2016-09-30 504.93 0.00 355.53
2015-12-31 268.38 20.00 126.96
  • PPDAI Group's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if PPDAI Group's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (9086.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 38.3x coverage).
X
Financial health checks
We assess PPDAI Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PPDAI Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PPDF Dividends

 What is PPDAI Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.13%
Current annual income from PPDAI Group dividends. Estimated to be 0% next year.
If you bought $2,000 of PPDAI Group shares you are expected to receive $83 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PPDAI Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • PPDAI Group's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PPDF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PPDF Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00
NYSE:PPDF Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-14 1.271 4.031

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether PPDAI Group has stable dividend payments.
  • PPDAI Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of PPDAI Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7x coverage).
Future Payout to shareholders
  • No need to calculate the sustainability of PPDAI Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess PPDAI Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PPDAI Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PPDAI Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PPDF Management

 What is the CEO of PPDAI Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jun Zhang
AGE 42
TENURE AS CEO 0.8 years
CEO Bio

Mr. Jun Zhang has been Chairman of the Board at PPDAI Group Inc. since December 2016 and has been its Co-Chief Executive Officer since September 6, 2018. Mr. Zhang served as Chief Executive Officer of PPDAI Group Inc. from January 2011 to September 6, 2018. Mr. Zhang served as Operation Manager at Wicresoft, a provider of “Internet +” transition service jointly founded by Microsoft Corporation and Shanghai Alliance Investment Limited, from October 2008 to July 2010. Prior to that, he served as a Technical Lead of Microsoft Global Technical Engineering Center since 2001. Prior to that, he worked at Shanghai Online E-Biz Co., Ltd. as a Coder and Programmer from 2000 to 2001. He is a Co-founders of PPDAI Group Inc. and has been its Director since September 2011. Mr. Zhang received his bachelor’s degree in communication science and engineering and master’s degree in industrial engineering from Shanghai Jiaotong University in China.

CEO Compensation
  • Insufficient data for Jun to compare compensation growth.
  • Insufficient data for Jun to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PPDAI Group management team in years:

2
Average Tenure
41
Average Age
  • The tenure for the PPDAI Group management team is about average.
Management Team

Jun Zhang

TITLE
Co-Founder
AGE
42
TENURE
0.8 yrs

Feng Zhang

TITLE
Co-Chief Executive Officer
AGE
43
TENURE
0.8 yrs

Tiezheng Li

TITLE
Co-Founder
AGE
34

Honghui Hu

TITLE
President
AGE
42
TENURE
8.5 yrs

Simon Ho

TITLE
Chief Financial Officer
AGE
45
TENURE
2.8 yrs

Jinqi Si

TITLE
Chief Technology Officer
AGE
39
TENURE
1.6 yrs

Sally Huo

TITLE
Head of Investor Relations

Shaofeng Gu

TITLE
Chief Innovation Officer & Director
AGE
41
TENURE
0.3 yrs

Yuxiang Wang

TITLE
Chief Product Officer
AGE
39
TENURE
4.1 yrs

Ming Gu

TITLE
Chief Data Officer & Chief Risk Officer
AGE
38
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the PPDAI Group board of directors in years:

2.6
Average Tenure
42
Average Age
  • The average tenure for the PPDAI Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jun Zhang

TITLE
Co-Founder
AGE
42
TENURE
2.6 yrs

Tiezheng Li

TITLE
Co-Founder
AGE
34
TENURE
0.8 yrs

Honghui Hu

TITLE
President
AGE
42
TENURE
7.8 yrs

Shaofeng Gu

TITLE
Chief Innovation Officer & Director
AGE
41
TENURE
10.3 yrs

Jimmy Y. Lai

TITLE
Independent Director
AGE
63
TENURE
1.7 yrs

Ronald Cao

TITLE
Director
AGE
45
TENURE
5.4 yrs

Bing Xiang

TITLE
Independent Director
AGE
56
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess PPDAI Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PPDAI Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PPDF News

Simply Wall St News

Did Changing Sentiment Drive PPDAI Group's (NYSE:PPDF) Share Price Down By 27%?

There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … PPDAI Group managed to increase earnings per share from a loss to a profit, over the last 12 months. … As it happens, PPDAI Group's TSR for the last year was -24%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Brief Commentary On PPDAI Group Inc.'s (NYSE:PPDF) Fundamentals

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … (NYSE:PPDF), it is a company that has been able to sustain great financial health, trading at an attractive share price. … PPDF's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish.

Simply Wall St -

Is PPDAI Group Inc. (NYSE:PPDF) A Smart Pick For Income Investors?

Recently, PPDAI Group Inc. … Does PPDAI Group tick all the boxes of a great dividend stock? … View our latest analysis for PPDAI Group

Simply Wall St -

A Holistic Look At PPDAI Group Inc (NYSE:PPDF)

Attractive stocks have exceptional fundamentals. … In the case of PPDAI Group Inc (NYSE:PPDF), there's … financial health as well as

Simply Wall St -

PPDF Company Info

Description

PPDAI Group Inc., an investment holding company, operates an online consumer finance marketplace through its platform in the People’s Republic of China. It provides services to match borrowers with investors and facilitate loan transactions on its marketplace through the lifecycle of loans. The company offers standard, handy cash, consumption, and other loan products; and investment services to investors and institutional funding partners. As of March 31, 2019, it had approximately 93.9 million cumulative registered users. The company was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.

Details
Name: PPDAI Group Inc.
PPDF
Exchange: NYSE
Founded: 2007
$1,371,952,300
306,924,452
Website: http://www.ppdai.com
Address: PPDAI Group Inc.
Building G1,
No. 999 Dangui Road,
Shanghai,
201203,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PPDF SPONSORED ADR New York Stock Exchange US USD 10. Nov 2017
Number of employees
Current staff
Staff numbers
4,146
PPDAI Group employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 00:49
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/15
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.