NYSE:WEI

Stock Analysis Report

Executive Summary

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China.

Snowflake

Fundamentals

Undervalued with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WEI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

WEI

-0.5%

US Consumer Finance

0.2%

US Market


1 Year Return

-39.4%

WEI

10.0%

US Consumer Finance

12.2%

US Market

Return vs Industry: WEI underperformed the US Consumer Finance industry which returned 10% over the past year.

Return vs Market: WEI underperformed the US Market which returned 12.2% over the past year.


Shareholder returns

WEIIndustryMarket
7 Day-5.3%-0.5%0.2%
30 Day-3.2%4.2%3.5%
90 Day-15.8%0.9%6.3%
1 Year-39.4%-39.4%11.9%10.0%14.7%12.2%
3 Yearn/a45.9%38.9%47.8%38.3%
5 Yearn/a37.9%27.8%62.1%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WEI ($6.06) is trading below our estimate of fair value ($22.01)

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


Price To Earnings Ratio

PE vs Industry: WEI is good value based on its PE Ratio (7.8x) compared to the Consumer Finance industry average (8.5x).

PE vs Market: WEI is good value based on its PE Ratio (7.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WEI is good value based on its PB Ratio (0.9x) compared to the US Consumer Finance industry average (1.3x).


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEI's forecast earnings growth (19% per year) is above the savings rate (2.7%).

Earnings vs Market: WEI's earnings (19% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: WEI's revenue (13.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WEI's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Weidai performed over the past 5 years?

-41.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: WEI has high quality earnings.

Growing Profit Margin: WEI's current net profit margins (8.5%) are lower than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if WEI's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: WEI had negative earnings growth (-41.9%) over the past year, making it difficult to compare to the Consumer Finance industry average (17.1%).


Return on Equity

High ROE: WEI's Return on Equity (14.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Weidai'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: WEI has a low level of unsold assets or inventory.

Debt Coverage by Assets: WEI's debt is covered by short term assets (assets are 7.5x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

3.8yrs

Average management tenure


CEO

Hong Yao (39yo)

8.8yrs

Tenure

0

Mr. Hong Yao is a Founder, Chairman of the Board of Directors and Chief Executive Officer of Weidai Ltd. since inception 2011 and served as its President. 


Management Age and Tenure

3.8yrs

Average Tenure

38yo

Average Age

Experienced Management: WEI's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

39.5yo

Average Age

Experienced Board: WEI's board of directors are not considered experienced ( 1.7 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 been diluted in the past year, with total shares outstanding growing by 28.1%.


Management Team

  • Hong Yao (39yo)

    Founder

    • Tenure: 8.8yrs
  • Chen Feng (43yo)

    President

    • Tenure: 1.7yrs
  • Sun Yuqun (38yo)

    Director & VP of Human Resources

    • Tenure: 1.7yrs
  • Ding Desheng (37yo)

    Director & VP of Finance and Risk Management

    • Tenure: 1.7yrs
  • Ye Wei (34yo)

    Director & VP of Online Operations

    • Tenure: 1.7yrs
  • Gu Quanlin (38yo)

    Chief Risk Officer

    • Tenure: 2.8yrs
  • Wang Pengfei (37yo)

    Vice President of Brand Development

    • Tenure: 4.8yrs
  • Zhu Jianzhong (40yo)

    Vice President of Technology

    • Tenure: 3.8yrs

Board Members

  • Hong Yao (39yo)

    Founder

    • Tenure: 8.8yrs
  • Chen Feng (43yo)

    President

    • Tenure: 1.7yrs
  • Sun Yuqun (38yo)

    Director & VP of Human Resources

    • Tenure: 1.7yrs
  • Ding Desheng (37yo)

    Director & VP of Finance and Risk Management

    • Tenure: 1.7yrs
  • Ye Wei (34yo)

    Director & VP of Online Operations

    • Tenure: 1.7yrs
  • Wang Yan (40yo)

    Director

    • Tenure: 1yrs
  • Tony Cai (52yo)

    Independent Director

    • Tenure: 1yrs
  • William Poi (51yo)

    Independent Director

    • Tenure: 1yrs

Company Information

Weidai Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weidai Ltd.
  • Ticker: WEI
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$426.910m
  • Shares outstanding: 70.45m
  • Website: https://www.weidai.com.cn

Number of Employees


Location

  • Weidai Ltd.
  • West Building
  • 50th Floor
  • Hangzhou
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WEINYSE (New York Stock Exchange)YesSPONS ADSUSUSDNov 2018

Biography

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily small and micro enterprise ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 00:59
End of Day Share Price2019/11/14 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.