Yirendai Ltd (NYSE:YRD): The Best Of Both Worlds

I’ve been keeping an eye on Yirendai Ltd (NYSE:YRD) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe YRD has a lot to offer. Basically, it is a financially-healthy company with a great track record and an optimistic future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Yirendai here.

Very undervalued with exceptional growth potential

YRD’s strong returns in the past year, both in terms of equity and assets offer investors comfort in its demonstrated capacity to grow its profitability.

NYSE:YRD Future Profit August 28th 18
NYSE:YRD Future Profit August 28th 18

YRD is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that YRD has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about YRD’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. YRD has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

NYSE:YRD Historical Debt August 28th 18
NYSE:YRD Historical Debt August 28th 18

Next Steps:

For Yirendai, I’ve compiled three relevant aspects you should look at:

  1. Valuation: What is YRD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether YRD is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does YRD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from YRD as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of YRD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.