NYSE:QD

Stock Analysis Report

Executive Summary

Qudian Inc. provides online small consumer credit products in the People’s Republic of China.

Snowflake

Fundamentals

Very undervalued with outstanding track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

QD

3.2%

US Consumer Finance

2.3%

US Market


1 Year Return

49.7%

QD

5.5%

US Consumer Finance

5.6%

US Market

Return vs Industry: QD exceeded the US Consumer Finance industry which returned 5.5% over the past year.

Return vs Market: QD exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

QDIndustryMarket
7 Day2.2%3.2%2.3%
30 Day-7.6%-3.9%-1.0%
90 Day-17.7%-6.6%-0.7%
1 Year49.7%49.7%7.3%5.5%7.9%5.6%
3 Yearn/a59.7%52.0%45.6%36.3%
5 Yearn/a42.2%31.8%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: QD ($6.6) is trading below our estimate of fair value ($48.7)

Significantly Undervalued: QD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QD is good value based on its PE Ratio (4x) compared to the Consumer Finance industry average (8.2x).

PE vs Market: QD is good value based on its PE Ratio (4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: QD is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: QD is good value based on its PB Ratio (1.1x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Qudian forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QD's forecast earnings growth (17.7% per year) is above the savings rate (2.7%).

Earnings vs Market: QD's earnings (17.7% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: QD's revenue (17.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: QD's revenue (17.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: QD's Return on Equity is forecast to be high in 3 years time (27.4%)


Next Steps

Past Performance

How has Qudian performed over the past 5 years?

52.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QD's earnings have grown significantly by 52.7% per year over the past 5 years.

Accelerating Growth: QD's earnings growth over the past year (58.9%) exceeds its 5-year average (52.7% per year).

Earnings vs Industry: QD earnings growth over the past year (58.9%) exceeded the Consumer Finance industry 25.5%.


Return on Equity

High ROE: QD's Return on Equity (28.9%) is considered high.


Return on Assets

ROA vs Industry: QD has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: QD has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Qudian'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: QD has a low level of unsold assets or inventory.

Debt Coverage by Assets: QD's debt is covered by short term assets (assets are 4.283430x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

5.8yrs

Average management tenure


CEO

Min Luo (36yo)

5.8yrs

Tenure

0

Mr. Min Luo is Founder, Chairman of Board of Directors, and, since the inception of Qudian Inc. in 2014, has served as Chief Executive Officer. Prior to founding Qudian Inc., Mr. Luo served as a Vice Presi ...


Management Age and Tenure

5.8yrs

Average Tenure

36yo

Average Age

Experienced Management: QD's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

46yo

Average Age

Experienced Board: QD's board of directors are not considered experienced ( 2 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


Management Team

  • Carl Yeung (39yo)

    Chief Financial Officer

    • Tenure: 3yrs
  • Min Luo (36yo)

    Founder

    • Tenure: 5.8yrs
  • Lianzhu Lv (34yo)

    Head of User Experience Department & Director

    • Tenure: 3.9yrs
  • Sissi Zhu

    Director of Capital Markets

    • Tenure: 0yrs
  • Yang Binbin

    Vice President of Public Relations

    • Tenure: 0yrs
  • Annie Huang

    Director of Capital Markets

    • Tenure: 0yrs

Board Members

  • Frank Li (52yo)

    Independent Director

    • Tenure: 2yrs
  • Shengwen Rong (50yo)

    Independent Director

    • Tenure: 1.2yrs
  • Min Luo (36yo)

    Founder

    • Tenure: 5.8yrs
  • Lianzhu Lv (34yo)

    Head of User Experience Department & Director

    • Tenure: 3.9yrs
  • Rocky Lee (46yo)

    Independent Director

    • Tenure: 2yrs

Company Information

Qudian Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Qudian Inc.
  • Ticker: QD
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$1.843b
  • Shares outstanding: 279.19m
  • Website: https://www.qudian.com

Number of Employees


Location

  • Qudian Inc.
  • Tower A
  • AVIC Zijin Plaza
  • Xiamen
  • Fujian Province
  • 361000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QDNYSE (New York Stock Exchange)YesADRUSUSDOct 2017
0A2TLSE (London Stock Exchange)YesADRGBUSDOct 2017
1QUDB (Deutsche Boerse AG)YesADRDEEUROct 2017

Biography

Qudian Inc. provides online small consumer credit products in the People’s Republic of China. It uses big data-enabled technologies, including artificial intelligence and machine learning to transform the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:53
End of Day Share Price2019/10/16 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.