NYSE:XRF

Stock Analysis Report

Executive Summary

China Rapid Finance Limited, through its subsidiaries, provides a consumer lending marketplace for lenders and borrowers in the People’s Republic of China.

Snowflake

Fundamentals

Slightly overvalued with worrying balance sheet.

Share Price & News

How has China Rapid Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.9%

XRF

3.2%

US Consumer Finance

2.3%

US Market


1 Year Return

-85.1%

XRF

5.5%

US Consumer Finance

5.6%

US Market

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

Return vs Market: XRF underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

XRFIndustryMarket
7 Day8.9%3.2%2.3%
30 Day-42.8%-3.9%-1.0%
90 Day-2.1%-6.6%-0.7%
1 Year-85.1%-85.1%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 China Rapid Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Rapid Finance 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: XRF ($0.36) is trading below our estimate of fair value ($116.5)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: XRF is overvalued based on its PB Ratio (1.6x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

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

4.5%

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 China Rapid Finance 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 China Rapid Finance performed over the past 5 years?

58.1%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: XRF is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: XRF is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (25.5%).


Return on Equity

High ROE: XRF has a negative Return on Equity (-379.64%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: XRF is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: XRF is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China Rapid Finance'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: XRF has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if XRF's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if XRF has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if XRF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is China Rapid Finance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

1.1yrs

Average management tenure


CEO

Zane Wang (61yo)

0yrs

Tenure

0

Mr. Zhengyu Wang, also known as Zane, is Chairman and Co-Chief Executive Officer of China Rapid Finance Limited (the Company”). Dr. Wang also advised the People’s Bank of China on the creation of the Natio ...


Management Age and Tenure

1.1yrs

Average Tenure

59yo

Average Age

Experienced Management: XRF's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

0.5yrs

Average Tenure

59yo

Average Age

Experienced Board: XRF's board of directors are not considered experienced ( 0.5 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

  • Nigel Morris (60yo)

    • Tenure: 14.8yrs
  • Phillip Riese (70yo)

    • Tenure: 14.8yrs
  • Kevin Kong (46yo)

    General Counsel

    • Tenure: 1.8yrs
  • Zane Wang (61yo)

    Founder

    • Tenure: 0yrs
  • Lifu Chen (56yo)

    • Tenure: 0yrs
  • Steven Foo (47yo)

    CFO & Executive Director

    • Tenure: 0.5yrs
  • Russell Krauss (59yo)

    Co-CEO & Vice Chairman

    • Tenure: 1.1yrs
  • Marlene Pan

    Director of Investor Relations

    • Tenure: 0yrs
  • Wilson Qin

    Chief Technology Officer

    • Tenure: 0.6yrs
  • Quasi Yao

    Director of Strategy & Operations

    • Tenure: 0.6yrs

Board Members

  • Steve Eskenazi (54yo)

    Advisory Director

    • Tenure: 0.5yrs
  • Doug Brown (65yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
  • Zane Wang (61yo)

    Founder

    • Tenure: 0yrs
  • Steven Foo (47yo)

    CFO & Executive Director

    • Tenure: 0.5yrs
  • Russell Krauss (59yo)

    Co-CEO & Vice Chairman

    • Tenure: 1.1yrs
  • Edward Yan

    Independent Director

    • Tenure: 0.5yrs

Company Information

China Rapid Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Rapid Finance Limited
  • Ticker: XRF
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$23.935m
  • Shares outstanding: 66.40m
  • Website: https://null

Number of Employees


Location

  • China Rapid Finance Limited
  • Building D, BenQ Plaza
  • 5th Floor
  • Shanghai
  • 200335
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XRFNYSE (New York Stock Exchange)YesSPONSORED ADRUSUSDApr 2017

Biography

China Rapid Finance Limited, through its subsidiaries, provides a consumer lending marketplace for lenders and borrowers in the People’s Republic of China. The company offers various loan products to serve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:44
End of Day Share Price2019/10/17 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.