FinVolution Group (FINV) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: 5.84%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.72
• Revenue Growth: 9.32%
• EPS Growth: 29.40%
• Country: US
• Employees: 3,623
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.33
• Shares Outstanding: 140,073,870
• 10 Day Avg. Volume: 1,526,766
• 30 Day Avg. Volume: 1,570,318
• PEG Ratio: 0.62
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 4.55
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.08
• Enterprise Value/Ebitda: 0.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): $2.01B

• Rating: 73 Outperform
• Price Target: $6.00 ▼(-11.37% Downside)

FinVolution Group's strong financial performance and attractive valuation are significant positives. However, the bearish technical indicators and regulatory challenges in China present notable risks. The company's international growth and technological advancements provide a promising outlook, but increased delinquency rates and short-term uncertainties in China temper the overall score.

Positive Factors

International Business Expansion

The significant growth in international markets, now contributing 25% of total revenue, indicates successful geographic diversification and potential for sustained growth.

Technological Advancements

Continued investment in AI and technology enhances operational efficiency and customer satisfaction, strengthening competitive advantage.

Strong Financial Health

A low debt-to-equity ratio indicates minimal leverage risk, providing financial stability and flexibility for future investments.

Negative Factors

Regulatory Challenges in China

Regulatory changes in China may impact revenue and risk metrics, posing a challenge to domestic operations and requiring strategic adjustments.

Increased Delinquency Rates

Rising delinquency rates could affect loan performance and profitability, necessitating enhanced risk management strategies.

Decline in Free Cash Flow Growth

A decline in free cash flow growth may constrain liquidity and limit the company's ability to fund new initiatives or weather economic downturns.

FinVolution Group Business Overview & Revenue Model

Company Description

FinVolution Group (FINV) is a leading technology-driven consumer finance platform in China, specializing in providing online financial services to underserved consumers and small businesses. The company operates primarily in the fintech sector, leveraging advanced data analytics and artificial intelligence to facilitate credit assessments and risk management. FinVolution offers a range of products, including personal loans, small business loans, and credit products tailored to meet the diverse needs of its clients.

How the Company Makes Money

FinVolution generates revenue primarily through interest income from the loans it issues to consumers and small businesses. The company's revenue model is built on charging interest on these loans, as well as fees associated with loan origination and processing. Additionally, FinVolution may earn income from partnerships with financial institutions and other service providers, including referral fees for directing clients to partner services. The use of technology and data analytics allows FinVolution to optimize its lending processes and manage risk effectively, contributing to its profitability.

FinVolution Group Financial Statement Overview

Summary

FinVolution Group demonstrates strong financial health with robust profitability and a solid balance sheet. The company shows strong revenue growth and a healthy net profit margin. However, the decline in free cash flow growth warrants attention.

Income Statement

FinVolution Group shows strong revenue growth with a 3.06% increase in TTM, supported by a robust gross profit margin of 80.96%. The net profit margin is healthy at 20.29%, indicating efficient cost management. However, the EBIT margin has decreased from previous years, suggesting potential pressure on operating efficiency.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.072, indicating minimal leverage risk. The return on equity is strong at 18.35%, reflecting effective utilization of equity capital. The equity ratio of 61.58% suggests a stable capital structure.

Cash Flow

Operating cash flow to net income ratio is moderate at 0.72, indicating decent cash generation relative to net income. However, the free cash flow growth rate has declined by 28.43%, which could impact future liquidity. The free cash flow to net income ratio remains strong at 1.0, showing good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.79B	13.07B	12.60B	11.28B	9.54B	7.56B
Gross Profit	11.17B	10.36B	9.90B	9.10B	7.63B	6.24B
EBITDA	4.18B	7.14B	6.88B	2.58B	2.68B	2.40B
Net Income	2.80B	2.38B	2.34B	2.27B	2.51B	1.97B
Balance Sheet
Total Assets	25.65B	23.61B	21.29B	21.38B	18.14B	14.88B
Cash, Cash Equivalents and Short-Term Investments	7.89B	7.51B	7.93B	7.06B	5.62B	4.60B
Total Debt	1.14B	34.36M	41.63M	176.99M	33.36M	43.30M
Total Liabilities	9.50B	8.05B	7.42B	8.94B	7.43B	6.45B
Stockholders Equity	15.80B	15.20B	13.75B	12.37B	10.66B	8.36B
Cash Flow
Free Cash Flow	2.40B	2.87B	875.33M	216.06M	574.96M	2.17B
Operating Cash Flow	2.26B	2.89B	1.41B	268.83M	630.23M	2.21B
Investing Cash Flow	-3.30B	-2.30B	1.41B	-1.55B	1.99B	1.04B
Financing Cash Flow	607.90M	-622.72M	-2.56B	-795.86M	-239.80M	-3.09B

FinVolution Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINV, the sentiment is Negative. The current price of 6.77 is above the 20-day moving average (MA) of 5.86, above the 50-day MA of 6.67, and below the 200-day MA of 8.18, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 21.91 is Positive, neither overbought nor oversold. The STOCH value of 4.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FINV.

FinVolution Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	73 Outperform	$1.20B	3.23	17.76%	5.84%	9.32%	29.40%
LX	72 Outperform	$607.43M	2.85	14.86%	8.70%	3.11%	95.40%
YRD	70 Outperform	$396.61M	2.24	13.64%	9.59%	12.69%	-35.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	55 Neutral	$721.60M	10.32	4.57%	―	-39.25%	―
LU	52 Neutral	$2.43B	―	―	―	―	―
AHG	45 Neutral	$878.07M	-3.36	-79.90%	―	510.69%	-145.92%

FinVolution Group Corporate Events

FinVolution Group’s Q3 2025 Financial Results Show Strong International Growth

FinVolution Group reported its unaudited financial results for the third quarter of 2025, showing a 6.4% year-over-year increase in revenue to RMB3,486.6 million. The company’s international revenues grew significantly by 37.4%, accounting for 25% of the total net revenues. Despite a slight decline in total transaction volume in China’s mainland, the international market saw a substantial increase in transaction volume and outstanding loan balance. The company’s net profit also saw a modest increase, reflecting its expanding footprint in international markets.

FinVolution Group Reports Strong Q2 2025 Financial Results

FinVolution Group reported its unaudited financial results for the second quarter of 2025, showing significant growth in transaction volumes and revenues. The company achieved a 9.4% year-over-year increase in transaction volume, reaching RMB106.1 billion, and a 37.8% increase in international transaction volume. Revenue for the first half of 2025 increased by 11.5% to RMB7,059.0 million, with international revenues rising by 30.2%. These results highlight FinVolution’s strong market position and expanding international presence, with implications for continued growth and stakeholder confidence.