NYSE:YRD

Stock Analysis Report

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Executive Summary

Yiren Digital Ltd., through its subsidiaries, operates as an online consumer finance marketplace that connects borrowers and investors primarily in the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Yiren Digital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: YRD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.6%

YRD

-3.9%

US Consumer Finance

-1.1%

US Market


1 Year Return

-50.9%

YRD

-18.9%

US Consumer Finance

15.0%

US Market

Return vs Industry: YRD underperformed the US Consumer Finance industry which returned -17.8% over the past year.

Return vs Market: YRD underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

YRDIndustryMarket
7 Day-12.6%-3.9%-1.1%
30 Day16.8%4.8%2.9%
90 Day-9.9%5.7%5.7%
1 Year-50.9%-50.9%-17.1%-18.9%17.6%15.0%
3 Year-92.3%-92.3%-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 Yiren Digital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yiren Digital 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: YRD ($3.26) is trading below our estimate of fair value ($51.34)

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


Price To Earnings Ratio

PE vs Industry: YRD is good value based on its PE Ratio (4.8x) compared to the US Consumer Finance industry average (12x).

PE vs Market: YRD is good value based on its PE Ratio (4.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: YRD is good value based on its PB Ratio (0.5x) compared to the US Consumer Finance industry average (1.1x).


Next Steps

Future Growth

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

21.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if YRD's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if YRD's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: YRD's revenue (21.4% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: YRD's revenue (21.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YRD's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Yiren Digital performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YRD has high quality earnings.

Growing Profit Margin: YRD's current net profit margins (6.8%) are lower than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: YRD's earnings have grown by 14.7% per year over the past 5 years.

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

Earnings vs Industry: YRD had negative earnings growth (-45.2%) over the past year, making it difficult to compare to the Consumer Finance industry average (-25.8%).


Return on Equity

High ROE: YRD's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is Yiren Digital's financial position?


Financial Position Analysis

Short Term Liabilities: YRD's short term assets (CN¥7.4B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: YRD's short term assets (CN¥7.4B) exceed its long term liabilities (CN¥2.1B).


Debt to Equity History and Analysis

Debt Level: YRD is debt free.

Reducing Debt: YRD has no debt compared to 5 years ago when its debt to equity ratio was 0.09%.

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

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


Balance Sheet


Next Steps

Dividend

What is Yiren Digital current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if YRD'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 YRD'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?

0.6yrs

Average management tenure


CEO

Ning Tang (46 yo)

1.25yrs

Tenure

Mr. Ning Tang is Founder of CreditEase Holdings (Cayman) Limited and serves as Chief Executive Officer. Mr. Tang founded Creditease Corp. in 2006 and serves as its Chief Executive Officer. In 1997, he wen ...


Leadership Team

NamePositionTenureCompensationOwnership
Ning Tang
Executive Chairman & CEO1.25yrsno data0.16%
CN¥ 489.0k
Na Mei
Chief Financial Officer0.083yrno datano data
Jiangxu Xiang
Chief Technology Officer0.58yrno datano data
Matthew Li
Director of Investor Relationsno datano datano data
Yu Cong
Senior Vice President of Strategic Corporate Business Development1.08yrsno datano data
Chunjiang Ji
Chief Risk Officer0.58yrno datano data
Lydia Yu
Investor Relations Officerno datano datano data

0.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: YRD's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ning Tang
Executive Chairman & CEO1.25yrsno data0.16%
CN¥ 489.0k
Quan Zhou
Director5.75yrsno datano data
Chaomei Chen
Independent Director3.83yrsno datano data
Hanhui Sun
Independent Director4.83yrsno datano data
Jingsheng Huang
Director4.83yrsno datano data
Tina Ju
Director5.75yrsno datano data
Huan Chen
Director5.75yrsno datano data
Qing Li
Director4.83yrsno datano data
Kwok King Chan
Observerno datano datano data
Hao Li
Independent Director0.75yrno datano data

4.8yrs

Average Tenure

48yo

Average Age

Experienced Board: YRD's board of directors are considered experienced (4.8 years average tenure).


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

Yiren Digital Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yiren Digital Ltd.
  • Ticker: YRD
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$302.549m
  • Shares outstanding: 92.81m
  • Website: https://www.yirendai.com

Number of Employees


Location

  • Yiren Digital Ltd.
  • Building 9
  • 10th Floor
  • Beijing
  • Beijing Province
  • 100022
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YRDNYSE (New York Stock Exchange)YesSPONSORED ADRUSUSDDec 2015
19YADB (Deutsche Boerse AG)YesSPONSORED ADRDEEURDec 2015
YRD NBMV (Bolsa Mexicana de Valores)YesSPONSORED ADRMXMXNDec 2015

Biography

Yiren Digital Ltd., through its subsidiaries, operates as an online consumer finance marketplace that connects borrowers and investors primarily in the People’s Republic of China. The company provides loan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 01:23
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.