CNFinance Holdings (CNF) AI Stock Analysis

• Market Cap: $41.15M
• Dividend Yield: N/A
• Average Volume (3M): 62.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 691
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): N/A
• Shares Outstanding: 6,858,216
• 10 Day Avg. Volume: 34,987
• 30 Day Avg. Volume: 62,661
• PEG Ratio: -0.06
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 0.32
• Enterprise Value/Market Cap: 16.36
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $5.50 ▼(-9.54% Downside)

CNFinance Holdings' overall stock score is primarily driven by its strong technical momentum and efficient cash flow generation. However, challenges in profitability, high leverage, and negative earnings call sentiment due to declining loan metrics and increased NPLs weigh down the score. The lack of valuation metrics further complicates a comprehensive assessment.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Cost Control

Effective cost control enhances profitability and operational efficiency, providing a solid foundation for sustainable growth.

NPL Recovery

High NPL recovery rate improves asset quality and reduces financial risk, contributing to long-term financial health.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Decline in Loan Transactions

A sharp decline in loan transactions may hinder revenue growth and market share, affecting long-term business prospects.

Rising NPL Ratio

An increasing NPL ratio indicates deteriorating asset quality, which could strain financial resources and impact profitability.

CNFinance Holdings Business Overview & Revenue Model

Company Description

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company also provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates a network of 63 branches and sub-branches, which included 14 branches and sub-branches in the Pearl River Delta region, 7 branches and sub-branches in the Yangtze River Delta region, and 42 branches and sub-branches in other areas in approximately 50 cities in China. CNFinance Holdings Limited was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

CNFinance generates revenue primarily through the interest income earned on loans issued to borrowers. The company originates loans, often through an online platform, and charges interest on these loans, which is a significant source of its income. Additionally, CNFinance may earn fees related to loan origination, servicing, and late payment penalties. The company has established partnerships with various financial institutions and technology firms that help to enhance its loan underwriting and risk assessment capabilities, thereby improving its profitability. Moreover, the company's focus on expanding its customer base and increasing the volume of loans disbursed contributes significantly to its overall earnings.

CNFinance Holdings Financial Statement Overview

Summary

CNFinance Holdings shows strong revenue growth and cash flow efficiency, but faces challenges with profitability and high leverage. The income statement reflects significant revenue growth but low net profit margins. The balance sheet indicates high leverage with a high debt-to-equity ratio, while cash flow is efficient with a strong free cash flow to net income ratio.

Income Statement

The income statement shows a mixed performance with a significant revenue growth rate of 83.72% in the most recent year, indicating strong top-line growth. However, the net profit margin is relatively low at 2.36%, suggesting challenges in converting revenue into profit. The gross profit margin is healthy at 39.07%, but the EBIT and EBITDA margins are modest at 3.02% and 3.74%, respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.47, which indicates significant leverage and potential financial risk. The return on equity is low at 0.93%, suggesting limited profitability relative to shareholder investment. The equity ratio stands at 27.00%, showing a moderate level of equity financing compared to total assets.

Cash Flow

The cash flow statement reveals a strong free cash flow to net income ratio of 98.95%, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is 10.70%, reflecting solid cash flow from operations. However, the free cash flow growth rate is not calculable due to a previous period's negative free cash flow, which limits the assessment of cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	359.92M	1.60B	1.84B	1.84B	1.37B	1.83B
Gross Profit	359.92M	828.34M	995.45M	841.97M	900.76M	1.03B
EBITDA	0.00	59.83M	207.39M	174.83M	97.59M	168.75M
Net Income	-50.53M	37.78M	164.62M	135.35M	65.21M	114.85M
Balance Sheet
Total Assets	12.52B	15.03B	16.36B	14.48B	14.39B	12.23B
Cash, Cash Equivalents and Short-Term Investments	922.27M	1.79B	2.70B	2.41B	3.48B	2.49B
Total Debt	5.31B	5.95B	8.96B	7.87B	8.10B	6.18B
Total Liabilities	8.49B	10.97B	12.36B	10.54B	10.57B	8.49B
Stockholders Equity	4.03B	4.06B	4.01B	3.89B	3.82B	3.74B
Cash Flow
Free Cash Flow	0.00	749.28M	1.59B	829.36M	685.89M	1.12B
Operating Cash Flow	0.00	757.23M	1.71B	919.25M	689.69M	1.12B
Investing Cash Flow	0.00	-263.67M	-2.48B	-1.10B	-2.35B	524.05M
Financing Cash Flow	0.00	-1.33B	1.01B	-288.16M	1.93B	-1.37B

CNFinance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNF, the sentiment is Positive. The current price of 6.08 is above the 20-day moving average (MA) of 5.80, above the 50-day MA of 5.24, and above the 200-day MA of 5.89, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 79.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNF.

CNFinance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEL	68 Neutral	$754.66M	8.13	16.04%	―	36.73%	27.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IOR	64 Neutral	$75.67M	18.23	3.36%	―	―	-30.69%
GHI	63 Neutral	$172.15M	37.95	1.99%	18.74%	-12.56%	-69.72%
SNFCA	61 Neutral	$233.96M	12.51	5.23%	―	3.25%	-37.79%
CNF	56 Neutral	$41.15M	―	―	―	―	―
PAPL	41 Neutral	$3.19M	-0.39	-322.20%	―	6.26%	50.57%

CNFinance Holdings Corporate Events

CNFinance Announces Extraordinary General Meeting for Shareholder Structure Changes

On November 10, 2025, CNFinance Holdings Limited announced its plan to hold an Extraordinary General Meeting of Shareholders on December 10, 2025. The meeting aims to consider the adoption of a dual-class shareholding structure and the replacement of the existing memorandum and articles of association. This move could significantly impact the company’s governance structure and shareholder dynamics, potentially affecting its strategic direction and market positioning.

CNFinance Regains NYSE Compliance with Share Price Adjustment

On October 14, 2025, CNFinance Holdings Limited announced that it has regained compliance with the New York Stock Exchange’s continued listing standard for minimum share price. Previously, the company was notified on April 7, 2025, that it was not in compliance due to its stock price falling below $1.00. To address this, CNFinance adjusted the ratio of its American depositary shares to Class A ordinary shares, which became effective on September 5, 2025. By October 1, 2025, the company’s stock price met the NYSE’s minimum requirement, allowing it to continue trading on the exchange.