NYSE:XYF

Stock Analysis Report

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Executive Summary

X Financial provides personal finance services in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.2%

XYF

12.8%

US Consumer Finance

2.5%

US Market


1 Year Return

-82.1%

XYF

-23.7%

US Consumer Finance

8.4%

US Market

Return vs Industry: XYF underperformed the US Consumer Finance industry which returned -23.7% over the past year.

Return vs Market: XYF underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

XYFIndustryMarket
7 Day-7.2%12.8%2.5%
30 Day-14.1%13.8%5.1%
90 Day-53.3%-16.0%2.0%
1 Year-82.1%-82.1%-22.2%-23.7%10.9%8.4%
3 Yearn/a11.6%5.9%30.5%21.9%
5 Yearn/a4.7%-3.4%56.9%39.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is X Financial 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: XYF ($0.77) is trading below our estimate of fair value ($11)

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


Price To Earnings Ratio

PE vs Industry: XYF is good value based on its PE Ratio (1.1x) compared to the Consumer Finance industry average (6.2x).

PE vs Market: XYF is good value based on its PE Ratio (1.1x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: XYF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: XYF is good value based on its PB Ratio (0.2x) compared to the US Consumer Finance industry average (0.9x).


Next Steps

Future Growth

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

-35.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XYF's earnings are forecast to decline over the next 3 years (-35.8% per year).

Earnings vs Market: XYF's earnings are forecast to decline over the next 3 years (-35.8% per year).

High Growth Earnings: XYF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: XYF's revenue (5.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: XYF's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XYF's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has X Financial performed over the past 5 years?

-12.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: XYF has high quality earnings.

Growing Profit Margin: XYF's current net profit margins (25.1%) are higher than last year (24.9%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: XYF had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (-20.3%).


Return on Equity

High ROE: XYF's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is X Financial's financial position?


Financial Position Analysis

Short Term Liabilities: XYF's short term assets (CN¥7.4B) exceed its short term liabilities (CN¥737.2M).

Long Term Liabilities: XYF's short term assets (CN¥7.4B) exceed its long term liabilities (CN¥3.2B).


Debt to Equity History and Analysis

Debt Level: XYF is debt free.

Reducing Debt: XYF had no debt 5 years ago.

Debt Coverage: XYF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: XYF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

12.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: XYF's dividend (12.16%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: XYF's dividend (12.16%) is in the top 25% of dividend payers in the US market (4.45%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether XYF's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if XYF's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.9%), XYF's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Justin Tang (47yo)

no data

Tenure

Mr. Yue Tang, also known as Justin is a Founding Partner at Blue Ridge China Partners. Mr. Tang is Founder, Chief Executive Officer and Chairman of X Financial. Mr. Tang co-founded eLong Inc. in 1999 and s ...


Leadership Team

NamePositionTenureCompensationOwnership
Yue Tang
Founderno datano data31.88% CN¥39.4m
Shaoyong Cheng
President & Director2.42yrsno datano data
Jie Zhang
Chief Financial Officer3.5yrsno datano data
Ding Gao
CTO & Director2.42yrsno datano data
Jennifer Zhang
Investor Relationsno datano datano data
Kan Li
Chief Risk Officer2.5yrsno datano data

3.0yrs

Average Tenure

45yo

Average Age

Experienced Management: XYF's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yue Tang
Founderno datano data31.88% CN¥39.4m
Shaoyong Cheng
President & Director2.42yrsno datano data
Ding Gao
CTO & Director2.42yrsno datano data
Zheng Xue
Independent Director1.67yrsno datano data
Longgen Zhang
Independent Director1.67yrsno datano data
Shengwen Rong
Independent Director1.67yrsno datano data

1.7yrs

Average Tenure

48yo

Average Age

Experienced Board: XYF's board of directors are not considered experienced ( 1.7 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 been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

X Financial's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: X Financial
  • Ticker: XYF
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$123.457m
  • Shares outstanding: 160.33m
  • Website: https://www.xiaoyinggroup.com

Number of Employees


Location

  • X Financial
  • Aerospace Science and Technology Plaza
  • 7-8 Floor, Block A
  • Shenzhen
  • Guangdong Province
  • 518067
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XYFNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDSep 2018

Biography

X Financial provides personal finance services in the People's Republic of China. The company offers a suite of products connecting borrowers and investors through a proprietary Internet platform. It provides Xiaoying Credit loan, which includes Xiaoying card loan, a credit card balance transfer product; and Xiaoying preferred loan, a high-credit-limit unsecured loan product. The company also offers Xiaoying housing loan; investment products through Xiaoying wealth management platform, such as loans, money market, and insurance products; and loan facilitation to other platforms. X Financial was founded in 2014 and is headquartered in Shenzhen, 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 Analysis2020/05/29 05:41
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
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.