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FinVolution Group (FINV)
NYSE:FINV
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FinVolution Group
(NYSE:FINV)
Rating:82Outperform
Price Target:
$10.00
▲( 16.14% Upside)
Positive Factors
Dividend and Buyback
FINV repurchased a significant amount of ADRs and increased its dividend payout, reflecting confidence in its financial health and future prospects.
Financial Performance
FINV reported solid growth in operating profit, reaching an all-time high, mainly due to improved domestic net revenue take rate and higher overseas revenue contribution.
Stock Buyback
A US$150mn repurchase program was launched, indicating flexibility to re-accelerate buybacks.
Negative Factors
Domestic Loan Volume
Domestic loan volume growth decelerated due to seasonal distortions from events like CNY.
Non-GAAP NPAT Growth
Normalization of other income, such as government subsidies, resulted in slightly slower growth in non-GAAP NPAT.
FinVolution Group (FINV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.21B
Dividend Yield2.98%
Average Volume (3M)1.13M
Price to Earnings (P/E)6.3
Beta (1Y)0.60
Revenue Growth4.99%
EPS Growth25.93%
CountryUS
Employees3,623
SectorFinancial
Sector Strength82
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.39
Shares Outstanding140,073,870
10 Day Avg. Volume785,561
30 Day Avg. Volume1,125,053
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)1.03
Price to Sales (P/S)0.00
P/FCF Ratio5.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.70Price Target Upside35.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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 exhibits strong financial performance characterized by robust revenue growth, high profitability margins, and a solid balance sheet with minimal leverage. The cash flow is positive with consistent free cash flow generation, although there is some volatility in investing and financing cash flows.Income Statement
FinVolution Group has demonstrated robust revenue growth over the years, with a notable increase from 2019 to 2024. The gross profit margin and net profit margin are strong, indicating efficient cost management and profitability. The EBIT and EBITDA margins have remained stable, contributing to the company's high profitability. The consistent revenue growth and high margins suggest a healthy income statement.85
Very Positive
Balance Sheet
The company's balance sheet reflects strong financial health characterized by low debt levels and a healthy equity base. The debt-to-equity ratio is extremely low, indicating minimal leverage risk. The return on equity is impressive, highlighting effective use of equity capital to generate profits. The equity ratio is solid, suggesting a stable financial foundation.80
Positive
Cash Flow
FinVolution Group's cash flow is positive, with substantial free cash flow generation. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion from earnings. The free cash flow growth rate shows improvement, although fluctuations in investing and financing cash flows suggest some volatility. Overall, the cash flow statement reflects a strong ability to generate cash.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.07B | 12.60B | 11.13B | 9.47B | 7.56B | Gross Profit |
| 10.36B | 9.90B | 9.10B | 7.63B | 6.24B | EBIT |
| 2.54B | 6.86B | 2.52B | 2.61B | 2.31B | EBITDA |
| 7.14B | 6.88B | 2.52B | 2.61B | 2.40B | Net Income Common Stockholders |
| 2.38B | 2.34B | 2.27B | 2.51B | 1.97B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.51B | 7.93B | 7.06B | 5.62B | 4.60B | Total Assets |
| 23.61B | 21.29B | 21.38B | 18.14B | 14.88B | Total Debt |
| 34.36M | 41.63M | 176.99M | 33.36M | 43.30M | Net Debt |
| -4.64B | -4.93B | -3.46B | -4.38B | -2.59B | Total Liabilities |
| 8.05B | 7.42B | 8.94B | 7.43B | 6.45B | Stockholders Equity |
| 15.20B | 13.75B | 12.37B | 10.66B | 8.36B |
| Cash Flow | Free Cash Flow | |||
| 2.87B | 875.33M | 216.06M | 574.96M | 2.17B | Operating Cash Flow |
| 2.89B | 1.41B | 268.83M | 630.23M | 2.21B | Investing Cash Flow |
| -2.30B | 1.41B | -1.55B | 1.99B | 1.04B | Financing Cash Flow |
| -622.72M | -2.56B | -795.86M | -239.80M | -3.09B |
FinVolution Group Technical Analysis
Positive
8.61
Price Trends
8.51
Positive
8.00
Positive
6.92
Positive
Market Momentum
0.13
Negative
54.70
Neutral
31.29
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 8.61 is above the 20-day moving average (MA) of 8.42, above the 50-day MA of 8.51, and above the 200-day MA of 6.92, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 54.70 is Neutral, neither overbought nor oversold. The STOCH value of 31.29 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 3 New Risks
1.
We bear credit risks for a substantial majority of the loans funded by institutional funding partners to borrowers we introduced. If we fail to effectively manage credit risk of our loans and our overdue loans increase, our business, financial condition and results of operations may be materially adversely affected. Q4, 2023
2.
We face indirect technology, cybersecurity and operational risks relating to third parties. Q4, 2023
3.
We face uncertainties with respect to the implementation of the Foreign Investment Law of the PRC and how it may impact the viability of our current corporate structure, corporate governance and business operations. Q4, 2023
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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.21B | 6.27 | 17.91% | 2.98% | 4.99% | 25.93% | |
80 Outperform | $5.62B | 6.53 | 30.67% | 3.01% | 3.88% | 56.29% | |
75 Outperform | $538.53M | 2.48 | 17.96% | 6.09% | 17.03% | -23.72% | |
74 Outperform | $1.32B | 7.38 | 12.60% | 1.93% | 7.53% | 37.86% | |
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% | |
53 Neutral | $477.39M | 42.94 | 0.80% | ― | 15.74% | 225.35% | |
52 Neutral | $2.41B | ― | -3.79% | 4.26% | -38.81% | -425.73% |
* Financial Sector Average
Performance Comparison
FINV
FinVolution Group
8.61
4.00
86.77%
YRD
Yiren Digital
6.24
1.89
43.45%
QD
Qudian
2.83
1.09
62.64%
LX
Lexinfintech Holdings
7.82
6.05
341.81%
QFIN
Qifu Technology
42.52
23.39
122.27%
LU
Lufax Holding
2.93
0.96
48.73%
FinVolution Group Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: -0.23%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance by FinVolution in Q1 2025, highlighted by record-breaking profits and robust international growth. Despite ongoing macroeconomic uncertainties and seasonal impacts in Indonesia, the company demonstrated resilience and adaptability. Highlights such as increased borrower acquisition, international expansion, and technological advancements in risk assessment outweigh the lowlights.Q1-2025 Updates
Positive Updates
Record-Breaking Net Profit
FinVolution reported a record-breaking quarterly net profit of RMB 738 million, the highest since transitioning to a loan facilitation model in 2019, representing a 39% year-over-year increase and an 8% quarter-over-quarter increase.
International Business Growth
International transaction volume grew 36% year-over-year, with an outstanding loan balance increase of 46% to RMB 1.9 billion. The international business contributed 20.4% of total net revenue in Q1 2025, up from 18.8% the previous year.
Strong Borrower Acquisition
FinVolution onboarded 1.2 million new borrowers in Q1 2025, up 62% year-over-year. International markets saw a 90% year-over-year increase in new borrowers, marking the fourth consecutive quarter where international acquisitions exceeded those in China.
Improved Risk Assessment
The company reported statistically significant improvements in risk assessment effectiveness through the use of large language models, enhancing their ability to evaluate user default probabilities.
Negative Updates
Macroeconomic Uncertainties
FinVolution is cautious of ongoing macroeconomic uncertainties, including global trade tensions, property sector softness, and evolving regulations in China's consumer finance sector.
Seasonal Softness in Indonesia
Indonesia experienced some seasonal impact in March due to Ramadan, resulting in slower growth despite a 10% year-over-year increase in transaction volume.
Company Guidance
During the first quarter of 2025, FinVolution Group reported a 10% year-over-year revenue growth, driven by an increased take rate in China and a 36% rise in international transaction volume. The company achieved a record net profit of RMB 738 million, marking a 39% year-over-year and 8% quarter-over-quarter increase. FinVolution's international business contributed 20.4% of total net revenue, up from 18.8% in the previous year, with international transaction volume reaching RMB 3 billion. The company onboarded 1.2 million new borrowers, a 62% increase year-over-year, with international acquisitions surpassing those in China. FinVolution aims to have international business contribute 50% of total revenue by 2030. The company is leveraging large language models for risk assessment and improving operational efficiency through technology initiatives. Despite macroeconomic uncertainties, FinVolution maintains a cautiously optimistic outlook, reiterating its 2025 full-year revenue guidance of RMB 14.4 billion to RMB 15 billion, representing 10% to 15% growth year-over-year.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.