AMEX:DXF

Stock Analysis Report

Executive Summary

Dunxin Financial Holdings Limited engages in the microfinance lending business in Hubei, China.

Rewards

Trading at 18.5% below its fair value

Risk Analysis

Earnings have declined by -19.42% per year over past 5 years

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($25M)



Snowflake Analysis

Good value with poor track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.4%

DXF

-0.3%

US Diversified Financial

0.06%

US Market


1 Year Return

-64.7%

DXF

11.2%

US Diversified Financial

19.4%

US Market

Return vs Industry: DXF underperformed the US Diversified Financial industry which returned 11.1% over the past year.

Return vs Market: DXF underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

DXFIndustryMarket
7 Day-4.4%-0.3%0.06%
30 Day-6.0%-1.3%1.1%
90 Dayn/a4.3%8.9%
1 Year-64.7%-64.7%11.4%11.2%21.9%19.4%
3 Yearn/a32.8%32.4%48.9%39.3%
5 Yearn/a49.7%49.0%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dunxin Financial Holdings undervalued compared to its fair value and its price relative to the market?

19.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DXF ($1.18) is trading below our estimate of fair value ($1.45)

Significantly Below Fair Value: DXF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DXF is good value based on its PE Ratio (7.4x) compared to the Diversified Financial industry average (9.4x).

PE vs Market: DXF is good value based on its PE Ratio (7.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DXF is good value based on its PB Ratio (0.5x) compared to the US Diversified Financial industry average (0.8x).


Next Steps

Future Growth

How is Dunxin Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.2%

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 Dunxin Financial Holdings 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 Dunxin Financial Holdings performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXF has high quality earnings.

Growing Profit Margin: DXF's current net profit margins (30%) are lower than last year (38.8%).


Past Earnings Growth Analysis

Earnings Trend: DXF's earnings have declined by -19.4% per year over the past 5 years.

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

Earnings vs Industry: DXF had negative earnings growth (-35.1%) over the past year, making it difficult to compare to the Diversified Financial industry average (38%).


Return on Equity

High ROE: DXF's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dunxin Financial Holdings'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: DXF has a low level of unsold assets or inventory.

Debt Coverage by Assets: DXF's debt is covered by short term assets (assets are 3.3x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.2yrs

Average management tenure


CEO

Qizhi Wei (51yo)

2.2yrs

Tenure

0

Mr. Qizhi Wei has been Chairman and Chief Executive Officer of Dunxin Financial Holdings Ltd. since December 2017. Mr. Wei, graduating from Wuhan University with an MBA degree, was engaged in savings, cred ...


Leadership Team

NamePositionTenureCompensationOwnership
Qizhi Wei
Chairman & CEO2.2yrsno data88.49% CN¥21.2m
Chee Ng
Chief Financial Officer9.7yrsno data0.035% CN¥8.4k
Weidong Xu
Chief Operating Officer2.2yrsno datano data
Wenting Xiao
Chief Personal/Human Resource Officer & Director2.2yrsno datano data
Eric Wu
Chief Risk Officer2.2yrsno datano data

2.2yrs

Average Tenure

49yo

Average Age

Experienced Management: DXF's management team is considered experienced (2.2 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 been substantially diluted in the past year, with total shares outstanding growing by 60.8%.


Top Shareholders

Company Information

Dunxin Financial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dunxin Financial Holdings Limited
  • Ticker: DXF
  • Exchange: AMEX
  • Founded: 2010
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: US$23.929m
  • Shares outstanding: 20.86m
  • Website: http://www.dunxin.us/irwebsite/index.php

Number of Employees


Location

  • Dunxin Financial Holdings Limited
  • Lian Fa International Building
  • 23rd Floor
  • Wuhan
  • Hubei Province
  • 430063
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXFAMEX (NYSE MKT LLC)YesSPON ADS EACH REPR 48 ORD SHS(REV SPLIT)USUSDJan 2018
X7F2DB (Deutsche Boerse AG)YesSPON ADS EACH REPR 48 ORD SHS(REV SPLIT)DEEURJan 2018
X7F2BST (Boerse-Stuttgart)YesSPON ADS EACH REPR 48 ORD SHS(REV SPLIT)DEEURJan 2018

Biography

Dunxin Financial Holdings Limited engages in the microfinance lending business in Hubei, China. It provides consumer, commercial, collateral-backed, and enterprise loans that are secured by assets as collateral or guaranteed by a third party to individuals; micro, small, and medium sized enterprises; and sole proprietors. The company was formerly known as China Xiniya Fashion Limited and changed its name to Dunxin Financial Holdings Limited in March 2018. Dunxin Financial Holdings Limited was incorporated in 2010 and is based in Wuhan, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:49
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
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.