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Fanhua (AIFU)
NASDAQ:AIFU
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Fanhua
(NASDAQ:AIFU)
Rating:65Neutral
Price Target:
$3.00
▼(-10.98%Downside)
Fanhua (AIFU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$164.50M
Dividend YieldN/A
Average Volume (3M)1.18M
Price to Earnings (P/E)3.1
Beta (1Y)0.83
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees4,707
SectorFinancial
Sector Strength81
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)1.10
Shares Outstanding2,895,264
10 Day Avg. Volume133,620
30 Day Avg. Volume1,181,624
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio0.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Fanhua Business Overview & Revenue Model
Company DescriptionFanhua 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 MoneyFanhua 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.65
Positive
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.70
Positive
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.75
Positive
| 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 | ||||
| 1.78B | 821.33M | 1.55B | 915.28M | 1.44B | 1.55B | Total Assets |
| 3.44B | 4.15B | 4.05B | 3.09B | 3.24B | 3.08B | Total Debt |
| 183.24M | 206.49M | 292.77M | 172.17M | 215.29M | 189.76M | Net Debt |
| 13.59M | 14.37M | -228.76M | -395.35M | -349.33M | -55.67M | Total Liabilities |
| 1.40B | 1.52B | 1.71B | 1.36B | 1.28B | 1.13B | Stockholders Equity |
| 1.93B | 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
Neutral
3.37
Price Trends
3.13
Positive
5.17
Negative
15.26
Negative
Market Momentum
-0.13
Negative
54.69
Neutral
81.38
Negative
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 3.37 is above the 20-day moving average (MA) of 3.04, above the 50-day MA of 3.13, and below the 200-day MA of 15.26, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 81.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIFU.
Fanhua Risk Analysis
Fanhua disclosed 68 risk factors in its most recent earnings report. Fanhua reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We are exposed to risks associated with uncertainty in collectability of loan receivables Q4, 2023
2.
There is no assurance that we can meet obligation under bank borrowing arrangements. Failure to repay bank borrowing on time and in full could have material adverse impact on our reputation, financial stability and ability to fund operations and strategic initiatives. Q4, 2023
3.
There can be no assurance that any definitive agreement with respect to the Strategic Framework Agreement with White Group will be executed or that this or any other transaction will be approved or consummated. Potential uncertainty involving the proposed transaction may adversely affect our business and the market price of our ordinary shares and warrants. Q4, 2023
Fanhua Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $164.50M | 3.06 | 12.00% | ― | ― | ― | |
64 Neutral | $12.86B | 9.79 | 7.78% | 16985.65% | 12.28% | -7.82% | |
59 Neutral | $369.46M | 12.47 | 11.69% | 0.94% | 15.22% | 19.19% | |
59 Neutral | $272.15M | ― | -11.67% | 2.02% | -23.83% | -11.60% | |
55 Neutral | $697.86M | ― | -15.58% | ― | 77.44% | 85.53% | |
47 Neutral | $343.10M | 62.51 | -2.23% | ― | 10.50% | -92.02% | |
28 Underperform | $223.65M | ― | 26.69% | ― | 583.33% | 6.59% |
* Financial Sector Average
Performance Comparison
AIFU
Fanhua
3.37
-55.03
-94.23%
ITIC
Investors Title Company
196.36
36.42
22.77%
MBI
MBIA
4.43
-0.83
-15.78%
AMBC
Ambac Financial
6.77
-6.23
-47.92%
JRVR
James River Group
5.85
-1.77
-23.23%
HIPO
Hippo Holdings
27.75
9.82
54.77%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.