NYSE:WEI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-21.7%

WEI

-3.9%

US Consumer Finance

-1.1%

US Market


1 Year Return

n/a

WEI

-18.9%

US Consumer Finance

15.0%

US Market

Return vs Industry: Insufficient data to determine how WEI performed against the US Consumer Finance industry.

Return vs Market: Insufficient data to determine how WEI performed against the US Market.


Shareholder returns

WEIIndustryMarket
7 Day-21.7%-3.9%-1.1%
30 Day167.0%4.8%2.9%
90 Day128.2%5.7%5.7%
1 Yearn/a-17.1%-18.9%17.6%15.0%
3 Yearn/a-4.4%-9.2%38.9%29.7%
5 Yearn/a19.6%9.8%78.4%58.4%

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 ($2.35) is trading below our estimate of fair value ($16.43)

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


Price To Earnings Ratio

PE vs Industry: WEI is unprofitable, so we can't compare its PE Ratio to the US Consumer Finance industry average.

PE vs Market: WEI is unprofitable, so we can't compare its PE Ratio to the US market.


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 (0.6x) compared to the US Consumer Finance industry average (1.1x).


Next Steps

Future Growth

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

45.6%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Weidai has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Weidai performed over the past 5 years?

-36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEI is currently unprofitable.

Growing Profit Margin: WEI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WEI is unprofitable, and losses have increased over the past 5 years at a rate of 36% per year.

Accelerating Growth: Unable to compare WEI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WEI is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-25.8%).


Return on Equity

High ROE: WEI has a negative Return on Equity (-24.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is Weidai's financial position?


Financial Position Analysis

Short Term Liabilities: WEI's short term assets (CN¥3.2B) exceed its short term liabilities (CN¥1.9B).

Long Term Liabilities: WEI's short term assets (CN¥3.2B) exceed its long term liabilities (CN¥109.3M).


Debt to Equity History and Analysis

Debt Level: WEI's debt to equity ratio (8.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if WEI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WEI's debt is well covered by operating cash flow (575.7%).

Interest Coverage: Insufficient data to determine if WEI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate WEI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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

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

4.8yrs

Average management tenure


CEO

Yao Hong (40 yo)

9.75yrs

Tenure

Mr. Yao Hong is a Founder, Chairman of the Board of Directors and Chief Executive Officer of Weidai Ltd. since inception 2011 and served as its President. He has over 13 years of experience in China’s smal ...


Leadership Team

NamePositionTenureCompensationOwnership
Yao Hong
Founder9.75yrsno data49.77%
CN¥ 82.4m
Chen Feng
President2.58yrsno datano data
Zhu Jianzhong
Vice President of Technology4.75yrsno datano data
Wang Pengfei
Vice President of Brand Development5.75yrsno datano data
Ding Desheng
VP of Finance & Risk Management2.58yrsno datano data

4.8yrs

Average Tenure

40yo

Average Age

Experienced Management: WEI's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yao Hong
Founder9.75yrsno data49.77%
CN¥ 82.4m
Chen Feng
President2.58yrsno datano data
Ding Desheng
VP of Finance & Risk Management2.58yrsno datano data
Sun Yuqun
Director2.58yrsno datano data
Tony Cai
Independent Director1.92yrsno datano data
Lam Yuen Poi
Independent Director1.92yrsno datano data

2.6yrs

Average Tenure

42yo

Average Age

Experienced Board: WEI's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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

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$165.584m
  • Shares outstanding: 70.46m
  • Website: https://www.weidai.com.cn

Number of Employees


Location

  • Weidai Ltd.
  • No. 9 Baiyun Road
  • Shangcheng District
  • 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 Analysis2020/10/28 01:05
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.