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Jiayin Group Inc (JFIN)
NASDAQ:JFIN
US Market

Jiayin Group (JFIN) AI Stock Analysis

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JF

Jiayin Group

(NASDAQ:JFIN)

Rating:83Outperform
Price Target:
$18.50
▲(6.69%Upside)
Jiayin Group's stock score is driven by strong financial performance and impressive earnings growth, supported by strategic technological advancements and international expansion. The stock's valuation metrics indicate it may be undervalued, while technical indicators suggest positive momentum. Increased expenses and cash management are areas to monitor.

Jiayin Group (JFIN) vs. SPDR S&P 500 ETF (SPY)

Jiayin Group Business Overview & Revenue Model

Company DescriptionJiayin Group Inc. (JFIN) is a prominent fintech company headquartered in China, primarily engaged in the provision of online consumer finance services. The company operates a robust online platform that facilitates the connection between individual borrowers and investors, offering a streamlined and efficient channel for personal finance management. Jiayin Group leverages advanced technology and data analytics to provide its core services, which include personal credit loan processing and risk management solutions.
How the Company Makes MoneyJiayin Group generates revenue primarily through service fees charged to borrowers and investors who utilize its online lending platform. Borrowers pay fees based on the loan amount and terms, while investors are charged fees for managing their investments on the platform. The company employs advanced data analytics to assess borrower creditworthiness, which helps in setting appropriate service fees and interest rates. Additionally, Jiayin might engage in partnerships with financial institutions to expand its service offerings and enhance its revenue potential. The company's earnings are largely influenced by the volume of loans facilitated through its platform and the overall demand for consumer finance solutions in its operating regions.

Jiayin Group Earnings Call Summary

Earnings Call Date:Jun 04, 2025
(Q1-2025)
|
% Change Since: 14.08%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Positive
The earnings call presented strong growth in loan facilitation volume and profitability metrics, driven by strategic expansion and technological integration. Despite increased marketing expenses and customer acquisition costs, the company demonstrated significant international growth and improved profitability, outweighing the noted challenges.
Q1-2025 Updates
Positive Updates
Strong Loan Facilitation Volume Growth
Loan facilitation volume reached RMB 35.6 billion, marking a year-over-year increase of 58.2%.
Record Non-GAAP Operating Profit
Non-GAAP operating profit hit RMB 607 million, a year-over-year increase of 91.6%.
Significant Net Profit Increase
Net profit surged to RMB 540 million, reflecting a year-over-year rise of 97.5%.
Expansion of New Borrowers
The company added 1.056 million new borrowers, representing a year-over-year growth of 126.6%.
AI Integration and Technological Advancements
Launched Fuxi model management platform, covering 90% of business lines, improving model deployment efficiency threefold.
International Growth in Indonesia and Mexico
Indonesian operations saw new registered users surge by 196% and loan volume grow by 190% year over year.
Enhanced Dividend Policy
Dividend payout ratio increased to approximately 30% of the previous fiscal year's net profit after tax.
Negative Updates
Increased Sales and Marketing Expenses
Sales and marketing expenses rose to RMB 674.5 million, representing an increase of 87.5% from the same period of 2024.
Loss for Unsecured Assets
Loss for unsecured assets, loans, and receivables was RMB 17.5 million, up from RMB 2.6 million in the first quarter of 2024.
Increase in Customer Acquisition Costs
Rising trend in customer acquisition cost observed due to competitive market dynamics and strategic expansion.
Decrease in Cash and Cash Equivalents
Cash and cash equivalents decreased to RMB 190.3 million from RMB 540.5 million at the end of the previous quarter.
Company Guidance
During Jiayin Group's earnings call for the first quarter of 2025, the company provided optimistic guidance for the second quarter, projecting loan facilitation volumes between RMB 37 billion and RMB 39 billion and non-GAAP operating profits ranging from RMB 660 million to RMB 730 million. The first quarter saw significant growth, with loan facilitation volumes reaching RMB 35.6 billion, a 58.2% year-over-year increase. The company also recorded a non-GAAP operating profit of RMB 607 million, marking a 91.6% increase, and a net profit of RMB 540 million, up 97.5% from the previous year. This growth was fueled by strategic efforts in borrower acquisition, leading to 1.056 million new borrowers, and the expansion of partnerships with 59 financial institutions, while another 55 are in discussions. The company highlighted its continued focus on technological enhancements and AI integration to improve operational efficiency and risk management, with their 90-day plus delinquency ratio standing at 1.13%. Additionally, Jiayin Group increased its dividend payout ratio to approximately 30% and extended its share repurchase program to June 2026, reflecting a commitment to shareholder returns.

Jiayin Group Financial Statement Overview

Summary
Jiayin Group shows strong financial health with consistent revenue growth and solid profitability. The balance sheet is robust with low leverage, and cash flow generation is strong with impressive free cash flow growth. However, attention is needed on EBIT margin decline and capital expenditures.
Income Statement
85
Very Positive
Jiayin Group has demonstrated strong revenue growth over the years, particularly a 6.1% increase from 2023 to 2024. The company maintains healthy profitability with a robust net profit margin of 18.2% for 2024. The gross profit margin remains solid at 64.9%, indicating effective cost management. However, a slight decline in EBIT margin from the previous year should be monitored.
Balance Sheet
72
Positive
The company's balance sheet shows a strong equity position with an equity ratio of 57.8% in 2024. The debt-to-equity ratio is low at 0.02, which indicates low financial leverage and reduced risk exposure. Return on equity is impressive at 33.8%, reflecting efficient use of equity, but the negative net debt position could be a concern if it indicates under-leveraging in an industry where leveraging can be advantageous.
Cash Flow
78
Positive
Jiayin Group's cash flow analysis reveals a significant increase in free cash flow by 91.6% from 2023 to 2024, enhancing financial flexibility. The operating cash flow to net income ratio is 1.35, showing that the company effectively converts its net income into cash. However, fluctuations in capital expenditures warrant attention for potential impacts on future cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.80B5.47B3.27B1.78B1.30B
Gross Profit3.77B3.46B2.71B1.44B1.06B
EBITDA1.27B1.34B1.19B447.63M325.26M
Net Income1.06B1.30B1.18B472.09M252.88M
Balance Sheet
Total Assets5.41B5.64B3.02B971.43M525.37M
Cash, Cash Equivalents and Short-Term Investments540.52M370.19M291.02M182.55M117.32M
Total Debt51.68M47.96M27.46M35.24M5.20M
Total Liabilities2.28B3.26B1.78B945.68M989.14M
Stockholders Equity3.13B2.38B1.24B27.86M-461.62M
Cash Flow
Free Cash Flow686.36M358.05M795.68M181.77M-36.35M
Operating Cash Flow1.43B389.59M915.37M184.54M-35.51M
Investing Cash Flow-783.52M-105.85M-157.25M-126.22M33.23M
Financing Cash Flow-332.69M-193.48M-86.10M9.94M10.60M

Jiayin Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.34
Price Trends
50DMA
14.47
Positive
100DMA
12.68
Positive
200DMA
9.76
Positive
Market Momentum
MACD
0.64
Positive
RSI
64.29
Neutral
STOCH
81.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JFIN, the sentiment is Positive. The current price of 17.34 is above the 20-day moving average (MA) of 17.05, above the 50-day MA of 14.47, and above the 200-day MA of 9.76, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 81.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JFIN.

Jiayin Group Risk Analysis

Jiayin Group disclosed 100 risk factors in its most recent earnings report. Jiayin 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

Jiayin Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$925.43M5.0442.99%5.71%4.16%1.98%
61
Neutral
$41.01B-0.64-14.21%3.80%2.39%-73.52%
60
Neutral
$411.60M3.7010.08%2.83%
54
Neutral
$545.36M-1.62%120.49%-7.15%22.29%
49
Neutral
$143.63M-26.80%
49
Neutral
$207.33M-6.76%-18.43%-349.12%
ZHZH
47
Neutral
$358.65M-0.39%-19.68%99.02%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JFIN
Jiayin Group
18.32
12.49
214.24%
SOHU
Sohu
13.78
-0.77
-5.29%
CMCM
Cheetah Mobile
4.68
1.01
27.52%
HUYA
Huya
2.44
0.24
10.91%
DOYU
DouYu International Holdings
6.87
3.58
108.81%
ZH
Zhihu
4.13
0.93
29.06%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 21, 2025