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.

Risk Analysis

Earnings have declined by -37.5% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.

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

-38.7%

XRF

-0.02%

US Consumer Finance

-0.3%

US Market


1 Year Return

-89.5%

XRF

16.0%

US Consumer Finance

18.6%

US Market

Return vs Industry: XRF underperformed the US Consumer Finance industry which returned 16% over the past year.

Return vs Market: XRF underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

XRFIndustryMarket
7 Day-38.7%-0.02%-0.3%
30 Day-43.5%0.4%2.2%
90 Day-75.5%2.0%5.6%
1 Year-89.5%-89.5%18.0%16.0%21.1%18.6%
3 Yearn/a36.8%30.2%45.6%36.2%
5 Yearn/a33.5%24.1%71.1%52.2%

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?

120.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate XRF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate XRF's fair value to establish if it is undervalued.


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 is overvalued based on its PB Ratio (120.8x) 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?

3.1%

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?

-37.5%

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 -37.5% 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 (17.1%).


Return on Equity

High ROE: XRF has a negative Return on Equity (-7255.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


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: XRF's debt is covered by short term assets (assets are 30x debt).


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 very high.

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%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of China Rapid Finance's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Zane Wang (61yo)

0.2yrs

Tenure

0

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 ...


Management Age and Tenure

0.8yrs

Average Tenure

56yo

Average Age

Experienced Management: XRF's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

0.7yrs

Average Tenure

54yo

Average Age

Experienced Board: XRF's board of directors are not considered experienced ( 0.7 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 32.9%.


Management Team

  • Nigel Morris (60yo)

    • Tenure: 14.9yrs
  • Phillip Riese (70yo)

    • Tenure: 14.9yrs
  • Kevin Kong (46yo)

    General Counsel

    • Tenure: 1.9yrs
  • Zane Wang (61yo)

    Founder

    • Tenure: 0.2yrs
  • Lifu Chen (56yo)

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

    CFO & Executive Director

    • Tenure: 0.7yrs
  • Marlene Pan

    Director of Investor Relations

    • Tenure: 0yrs
  • Wilson Qin

    Chief Technology Officer

    • Tenure: 0.8yrs
  • Quasi Yao

    Director of Strategy & Operations

    • Tenure: 0.8yrs
  • Po Wang (49yo)

    Executive VP of New Ventures & Executive Director

    • Tenure: 0.2yrs

Board Members

  • Steve Eskenazi (54yo)

    Advisory Director

    • Tenure: 0.7yrs
  • Doug Brown (65yo)

    Independent Non-Executive Director

    • Tenure: 12.9yrs
  • Zane Wang (61yo)

    Founder

    • Tenure: 0.2yrs
  • Steven Foo (47yo)

    CFO & Executive Director

    • Tenure: 0.7yrs
  • Russell Krauss (59yo)

    Vice Chairman

    • Tenure: 1.3yrs
  • Edward Yan (48yo)

    Independent Non Executive Director

    • Tenure: 0.7yrs
  • Po Wang (49yo)

    Executive VP of New Ventures & Executive Director

    • Tenure: 0.2yrs

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$16.136m
  • Shares outstanding: 7.17m
  • 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

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 Analysis2019/12/07 00:56
End of Day Share Price2019/12/06 00:00
Earnings2018/12/31
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.