Fanhua (AIFU) AI Stock Analysis

• Market Cap: $169.26M
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.83
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 4,707
• Sector: Financial
• Sector Strength: 77
• Industry: Insurance - Specialty
• EPS (TTM): 1.10
• Shares Outstanding: 2,895,264
• 10 Day Avg. Volume: 120,477
• 30 Day Avg. Volume: 1,183,601
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $3.00 ▼(-3.54%Downside)

AIFU's overall score is primarily influenced by its strong balance sheet and undervaluation. However, bearish technical indicators and declining revenues present significant risks.

Fanhua Business Overview & Revenue Model

Company Description

Fanhua Inc. (AIFU) is a leading independent financial services provider in China, primarily focused on the distribution of insurance products. The company offers a comprehensive range of life and property and casualty insurance products, catering to both individual and institutional clients. Fanhua operates through a network of sales agents and brokers, leveraging its extensive distribution channels to deliver tailored insurance solutions.

How the Company Makes Money

Fanhua Inc. generates revenue primarily through commissions and fees earned from the distribution of insurance products. The company partners with a wide range of insurance providers to offer a diverse portfolio of life and property and casualty insurance products to its clients. Revenue streams include commission income from insurance carriers based on the premium value of the policies sold and service fees for providing ancillary services such as policy administration and claims settlement. Additionally, Fanhua benefits from strategic partnerships with various insurance companies, which enhances its product offerings and market reach, contributing significantly to its earnings.

Fanhua Financial Statement Overview

Summary

AIFU shows financial stability with a strong balance sheet and improved cash flow management. However, declining revenues and operational inefficiencies are significant concerns.

Income Statement

The company's gross profit margin for the latest year is approximately 38.47%, which is fairly strong, but it has been declining over the years. The net profit margin improved significantly to 25.15%. However, there's a concerning negative EBIT margin due to a reported loss, indicating operational inefficiencies. Revenue has decreased substantially by about 43.45% from the previous year, presenting a major challenge.

Balance Sheet

The company maintains a healthy equity ratio of 61.34%, showing financial stability with a strong proportion of equity in its asset base. The debt-to-equity ratio is low at 0.08, indicating low leverage risk. Return on equity has improved to 17.86%, reflecting enhanced profitability for shareholders.

Cash Flow

Operating cash flow to net income ratio is 0.31, which is moderate and suggests cash generation from core operations. Free cash flow increased by 51.39% over the previous year, showing strong cash flow management. The free cash flow to net income ratio is 0.3, indicating a balance between cash earnings and net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.20B	1.81B	3.20B	2.78B	3.27B	3.27B
	Gross Profit
1.05B	695.97M	1.05B	986.01M	1.16B	1.05B
	EBIT
195.82M	-15.10M	195.82M	168.68M	301.90M	302.19M
	EBITDA
188.27M	-2.42M	229.88M	188.15M	320.29M	320.13M
	Net Income Common Stockholders
280.48M	454.96M	280.48M	100.27M	250.99M	268.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.55B	821.33M	1.55B	915.28M	1.44B	1.55B
	Total Assets
4.05B	4.15B	4.05B	3.09B	3.24B	3.08B
	Total Debt
292.77M	206.49M	292.77M	172.17M	215.29M	189.76M
	Net Debt
-228.76M	14.37M	-228.76M	-395.35M	-349.33M	-55.67M
	Total Liabilities
1.71B	1.52B	1.71B	1.36B	1.28B	1.13B
	Stockholders Equity
2.07B	2.55B	2.07B	1.62B	1.84B	1.83B
Cash Flow		Free Cash Flow
88.79M	134.40M	88.79M	60.01M	95.41M	387.05M
	Operating Cash Flow
101.79M	142.85M	101.79M	137.75M	126.20M	402.30M
	Investing Cash Flow
-234.31M	-436.59M	-234.31M	-127.56M	450.40M	325.34M
	Financing Cash Flow
86.18M	-64.39M	86.18M	-20.37M	-260.30M	-638.81M

Fanhua Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIFU, the sentiment is Neutral. The current price of 3.11 is above the 20-day moving average (MA) of 3.00, above the 50-day MA of 3.06, and below the 200-day MA of 14.90, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 64.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIFU.

Fanhua Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%
AIFU	65 Neutral	$169.26M	2.82	12.00%	―	―	―
ITIC	59 Neutral	$381.03M	12.86	11.69%	0.91%	15.22%	19.19%
JRVR	59 Neutral	$261.13M	―	-11.67%	0.68%	-23.83%	-11.60%
HIPO	55 Neutral	$681.76M	―	-15.58%	―	77.44%	85.53%
AMBC	47 Neutral	$318.03M	62.79	-2.23%	―	10.50%	-92.02%
MBI	28 Underperform	$220.63M	―	26.69%	―	583.33%	6.59%