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 Analysis

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

Stable Share Price: XRF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.0%

XRF

27.6%

US Consumer Finance

12.5%

US Market


1 Year Return

-88.1%

XRF

-33.1%

US Consumer Finance

-12.7%

US Market

Return vs Industry: XRF underperformed the US Consumer Finance industry which returned -33.1% over the past year.

Return vs Market: XRF underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

XRFIndustryMarket
7 Day26.0%27.6%12.5%
30 Day-24.6%-29.0%-14.7%
90 Day-65.9%-38.1%-21.5%
1 Year-88.1%-88.1%-32.0%-33.1%-10.9%-12.7%
3 Yearn/a-12.2%-16.5%12.6%5.4%
5 Yearn/a-11.9%-18.3%31.9%17.5%

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

Below Fair Value: XRF ($1.26) is trading below our estimate of fair value ($36.86)

Significantly Below Fair Value: 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

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 has negative assets, so we can't compare its PB Ratio to the US Consumer Finance industry average.


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?

2.1%

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?

-17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XRF is currently unprofitable.

Growing Profit Margin: XRF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: XRF is unprofitable, and losses have increased over the past 5 years at a rate of -17.6% per year.

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 (8.6%).


Return on Equity

High ROE: XRF's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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: Whilst unprofitable XRF has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: XRF is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -8.8% per year.


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

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.


Stability and Growth of Payments

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

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

1.0yrs

Average management tenure


CEO

Zane Wang (61yo)

0.42

Tenure

Dr. Zhengyu Wang, also known as Zane, founded China Rapid Finance Limited, serves as its Chairman and has also been its Chief Executive Officer since October 2019. Dr. Wang was Co-Chief Executive Officer o ...


Leadership Team

NamePositionTenureCompensationOwnership
Zhengyu Wang
Founder0.42yrno data5.25% $747.9k
Steven Foo
CFO & Executive Director0.92yrno data0.18% $25.2k
Quasi Yao
Director of Strategy & Operations1yrno datano data
Wilson Qin
Chief Technology Officer1yrno datano data
Marlene Pan
Director of Investor Relationsno datano datano data
Kevin Kong
General Counsel2.17yrsno datano data
Po Wang
Executive VP of New Ventures & Executive Director0.42yrno data0.18% $25.2k
Lifu Chen
no datano datano data
Phillip Riese
15.17yrsno datano data
Nigel Morris
15.17yrsno datano data

1.0yrs

Average Tenure

56yo

Average Age

Experienced Management: XRF's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhengyu Wang
Founder0.42yrno data5.25% $747.9k
Steven Foo
CFO & Executive Director0.92yrno data0.18% $25.2k
Po Wang
Executive VP of New Ventures & Executive Director0.42yrno data0.18% $25.2k
Steven Eskenazi
Advisory Director0.92yrno datano data
Douglas Brown
Independent Non-Executive Director13.17yrsno data0.46% $65.1k
Russell Krauss
Vice Chairman1.5yrsno data0.50% $70.8k
Edward Yan
Independent Non Executive Director0.92yrno data0.55% $78.8k

0.9yrs

Average Tenure

54yo

Average Age

Experienced Board: XRF's board of directors are not considered experienced ( 0.9 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

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$14.259m
  • Shares outstanding: 11.32m
  • Website: https://ir.crfchina.com/index.html

Number of Employees


Location

  • China Rapid Finance Limited
  • Building D, BenQ Plaza
  • 2nd Floor
  • Shanghai
  • 200335
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XRFNYSE (New York Stock Exchange)YesSPNSORD ADS NEWUSUSDApr 2017
2C31DB (Deutsche Boerse AG)YesSPNSORD ADS NEWDEEURApr 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 the lifetime credit needs of emerging middle-class, mobile active consumers, including consumption loans with terms of between two weeks and three months; and lifestyle loans with terms of between one and three years. It is also involved in the micro-credit lending business. The company serves marketplace investors and borrowers online, as well as through a physical network of 68 data verification centers and 6 investor service centers. As of December 31, 2018, it facilitated approximately 39.2 million loans to 4.5 million borrowers. The company was formerly known as China Risk Finance LLC and changed its name to China Rapid Finance Limited in August 2015. China Rapid Finance Limited was founded in 2004 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 03:03
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
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.