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FinVolution Group (FINV)
NYSE:FINV
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FinVolution Group
(NYSE:FINV)
77Outperform
FinVolution Group (FINV) vs. S&P 500 (SPY)
Market Cap
$2.61B
Dividend Yield2.36%
Average Volume (3M)1.12M
Price to Earnings (P/E)8.0
Beta (1Y)0.60
Revenue Growth2.51%
EPS Growth7.06%
CountryUS
Employees3,648
SectorFinancial
Sector Strength84
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.25
Shares Outstanding146,005,050
10 Day Avg. Volume1,474,189
30 Day Avg. Volume1,117,806
Financial Highlights & Ratios
PEG Ratio1.13
Price to Book (P/B)N/A
Price to Sales (P/S)1.79
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.40Price Target Upside15.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
FinVolution Group Business Overview & Revenue Model
Company DescriptionFinVolution Group operates fintech platform that connects underserved individual borrowers with financial institutions in China. It operates in online consumer finance industry. The company's platform empowered by proprietary technologies, features automated loan transaction process, which enables a user experience. As of March 31, 2022, it had approximately 145.3 million cumulative registered users. The company was formerly known as PPDAI Group Inc. and changed its name to FinVolution Group in November 2019. FinVolution Group was founded in 2007 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyFinVolution Group generates revenue primarily through the facilitation of online consumer loans. The company operates a marketplace lending model where it connects borrowers with lenders, earning fees from both parties. Key revenue streams include transaction fees from successful loan origination and servicing fees for managing the loan lifecycle. Additionally, FinVolution Group benefits from strategic partnerships with financial institutions and technology companies, enhancing its service offerings and expanding its reach. The company's sophisticated risk management and data analytics capabilities contribute significantly to its ability to maintain a profitable and sustainable business model.
FinVolution Group Financial Statement Overview
Summary
FinVolution Group demonstrates strong profitability with robust margins and solid revenue growth. The balance sheet is strong, with low leverage and a high equity ratio, indicating financial stability. Cash flow management is effective, although there are some fluctuations that suggest potential volatility.Income Statement
FinVolution Group demonstrates strong profitability with a gross profit margin of 81.90% and a net profit margin of 17.29% in TTM (Trailing-Twelve-Months). The revenue growth rate of 2.27% from the previous year indicates moderate growth. The EBIT margin is robust at 27.39%, although EBITDA margin calculation is inconsistent due to data anomalies. Overall, the income statement reflects a healthy operational efficiency and profitability, though growth is modest.85
Very Positive
Balance Sheet
The balance sheet of FinVolution Group is strong, with a low debt-to-equity ratio of 0.002 and a high equity ratio of 63.78% in TTM (Trailing-Twelve-Months). The return on equity (ROE) is a solid 15.33%, indicating efficient use of equity. The company shows strong financial stability and low leverage risk, which is favorable for long-term sustainability.88
Very Positive
Cash Flow
Operating cash flow is healthy, with a significant growth turning from negative in 2019 to positive in TTM (Trailing-Twelve-Months). The free cash flow to net income ratio is strong, indicating good cash conversion. The operating cash flow to net income ratio of 1.85 demonstrates effective cash management. However, fluctuations in free cash flow growth rate, from 2019 to 2024, indicate potential volatility in cash flow generation.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 12.89B | 12.60B | 11.13B | 9.47B | 7.56B | 5.96B | Gross Profit |
| 10.55B | 9.90B | 9.10B | 7.63B | 6.24B | 4.75B | EBIT |
| 3.53B | 6.86B | 2.52B | 2.61B | 2.31B | 2.56B | EBITDA |
| 2.26B | 6.88B | 2.52B | 2.61B | 2.40B | 2.67B | Net Income Common Stockholders |
| 2.23B | 2.34B | 2.27B | 2.51B | 1.97B | 2.37B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.31B | 7.93B | 7.06B | 5.62B | 4.60B | 2.44B | Total Assets |
| 13.14B | 21.29B | 21.38B | 18.14B | 14.88B | 18.30B | Total Debt |
| 25.00M | 41.63M | 176.99M | 33.36M | 43.30M | 320.14M | Net Debt |
| -1.59B | -4.93B | -3.46B | -4.38B | -2.59B | -2.00B | Total Liabilities |
| 7.16B | 7.42B | 8.94B | 7.43B | 6.45B | 10.29B | Stockholders Equity |
| 5.92B | 13.75B | 12.37B | 10.66B | 8.36B | 7.95B |
| Cash Flow | Free Cash Flow | ||||
| 3.59B | 875.33M | 216.06M | 574.96M | 2.17B | -264.18M | Operating Cash Flow |
| 4.13B | 1.41B | 268.83M | 630.23M | 2.21B | -215.52M | Investing Cash Flow |
| -215.25M | 1.41B | -1.55B | 1.99B | 1.04B | -828.22M | Financing Cash Flow |
| -3.57B | -2.56B | -795.86M | -239.80M | -3.09B | 1.75B |
FinVolution Group Technical Analysis
Positive
9.86
Price Trends
8.18
Positive
7.35
Positive
6.38
Positive
Market Momentum
0.55
Negative
64.26
Neutral
62.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINV, the sentiment is Positive. The current price of 9.86 is above the 20-day moving average (MA) of 8.84, above the 50-day MA of 8.18, and above the 200-day MA of 6.38, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 62.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FINV.
FinVolution Group Risk Analysis
FinVolution Group disclosed 91 risk factors in its most recent earnings report. FinVolution Group 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 0 New Risks
FinVolution Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $606.23M | 2.76 | 17.96% | 2.59% | 17.07% | -8.81% | |
84 Outperform | $7.36B | 7.83 | 27.15% | 2.58% | 3.88% | 56.29% | |
79 Outperform | $1.77B | 11.96 | 10.77% | 1.13% | 10.06% | 0.04% | |
77 Outperform | $2.61B | 7.98 | 16.47% | 2.36% | 2.51% | 7.06% | |
77 Outperform | $672.37M | 3.11 | 24.08% | 2.38% | 14.75% | 3.95% | |
74 Outperform | $616.24M | 3.88 | 46.42% | 7.53% | 19.46% | -22.51% | |
64 Neutral | $14.46B | 10.12 | 8.75% | 4.25% | 17.00% | -11.86% |
* Financial Sector Average
Performance Comparison
FINV
FinVolution Group
9.86
5.14
108.90%
YRD
Yiren Digital
6.95
2.68
62.76%
LX
Lexinfintech Holdings
11.06
9.35
546.78%
XYF
X Financial
13.00
8.66
199.54%
QFIN
Qifu Technology
44.45
26.94
153.85%
JFIN
Jiayin Group
11.91
5.08
74.38%
FinVolution Group Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: 8.11% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several achievements, including record transaction volumes, strong international revenue growth, advancements in R&D and AI, and successful shareholder returns. However, challenges in Indonesia due to new interest rate regulations and losses in the Philippines market were noted. Despite these challenges, the overall sentiment is positive with strong growth prospects and strategic initiatives in place.Highlights
Record Transaction Volume and Loan Balance
FinVolution Group achieved a 5% growth in transaction volume in China and a 28% increase internationally, with total transaction volume and outstanding loan balance reaching new highs of RMB 206 billion and RMB 72 billion, respectively, a 6% year-over-year increase.
Strong International Revenue Growth
Revenue from international operations rose 19% year-over-year to RMB 2.5 billion, contributing nearly 20% to the total revenue for 2024.
R&D and AI Advancements
Invested RMB 500 million in R&D in 2024, leading to notable AI advancements that reduced advertising production costs by 60% and increased conversion rates by 9%.
ESG Initiatives and Accolades
Empowered 826,000 small business owners with loans totaling RMB 58 billion, and received top-tier ESG rankings from Morningstar and S&P.
Successful Shareholder Returns
Returned over USD 160 million to shareholders in 2024, representing a 49% payout of net income, and increased annual dividend by 17%.
Lowlights
Challenges in Indonesia Due to Interest Rate Regulation
Indonesia's interest rate reduction in January 2024 posed challenges, necessitating operational adjustments to comply with new interest rate caps.
Philippines Market Losses
The Philippines market operated at a loss in 2024, although it is expected to become profitable in 2025.
Company Guidance
During the FinVolution Group's earnings call for the fourth quarter and full year of 2024, the company reported several key metrics demonstrating its growth and resilience despite economic challenges. They achieved a 5% growth in transaction volume in China and a 28% growth in international markets. The total transaction volume and outstanding loan balance reached new highs of RMB 206 billion and RMB 72 billion, respectively, both marking a 6% year-over-year increase. The company added approximately 4 million new borrowers, bringing the total to around 34 million across China, Indonesia, and the Philippines. Total revenue for 2024 was RMB 30.1 billion, up 4% from the previous year, with international operations contributing RMB 2.5 billion, a 19% increase. The company improved its funding cost by over 200 basis points, and invested around RMB 500 million in R&D, resulting in significant advancements in AI, which contributed to a 9% increase in borrower conversion rates. Looking forward, FinVolution anticipates a 10% to 15% increase in total revenue for 2025 and aims to increase international revenue contribution to around 25%.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.