X Financial (XYF) AI Stock Analysis

• Market Cap: $287.44M
• Dividend Yield: 7.59%
• Average Volume (3M): 221.07K
• Price to Earnings (P/E): 1.2
• Beta (1Y): 0.38
• Revenue Growth: 46.93%
• EPS Growth: 52.53%
• Country: US
• Employees: 563
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.41
• Shares Outstanding: 25,942,728
• 10 Day Avg. Volume: 336,550
• 30 Day Avg. Volume: 221,074
• PEG Ratio: 0.06
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 1.94
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $7.50 ▲(4.60% Upside)

X Financial's strong financial performance and attractive valuation are significant positives, indicating robust profitability and potential undervaluation. However, bearish technical indicators and challenges highlighted in the earnings call, such as increased delinquency rates and sequential revenue decline, temper the overall outlook.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates robust demand for X Financial's services, supporting long-term business expansion.

Strong Balance Sheet

A strong balance sheet with high asset growth and return on equity enhances financial stability and supports future investments.

New Leadership

The appointment of an experienced CFO is likely to strengthen financial strategy and market position, benefiting long-term growth.

Negative Factors

Sequential Revenue Decline

The sequential decline in revenue suggests potential challenges in maintaining growth momentum, possibly affecting future earnings.

Increased Delinquency Rates

Rising delinquency rates indicate increasing credit risk, which could impact profitability and necessitate higher provisions.

Reduced Net Income

A decline in net income due to higher credit losses may pressure margins and affect financial performance in the near term.

X Financial Business Overview & Revenue Model

Company Description

X Financial (XYF) is a leading financial technology company based in China, specializing in consumer lending and financial services. The company primarily operates in the online lending sector, providing a platform that connects borrowers with investors. X Financial focuses on offering personal loans, wealth management products, and other financial services, catering mainly to young professionals in urban areas who seek accessible financing options. The company's innovative technology-driven approach enhances user experience and streamlines lending processes.

How the Company Makes Money

X Financial generates revenue through various streams, primarily from interest income on loans issued to consumers. The company earns money by charging borrowers interest rates that are higher than the rates it pays to investors who fund those loans. Additionally, X Financial collects service fees from borrowers, which may include origination fees and late payment fees. The company also offers wealth management products, earning management fees and commissions from these services. Strategic partnerships with banks and financial institutions enhance its lending capabilities and broaden its investor base, contributing further to its revenue generation. Overall, X Financial's diversified offerings and efficient platform create a robust revenue model focused on consumer credit and investment services.

X Financial Financial Statement Overview

Summary

X Financial exhibits strong financial health with impressive revenue growth, profitability, and efficient cash flow management. The company maintains a conservative leverage position and effectively utilizes equity to generate returns. However, historical fluctuations in revenue and cash flow growth rates highlight potential risks.

Income Statement

X Financial has demonstrated impressive revenue growth of 66.27% in the latest year, with strong gross and net profit margins of 66.62% and 26.23% respectively. The EBIT and EBITDA margins are also robust at 63.02% and 63.14%, indicating efficient operations. However, the company has experienced volatility in revenue growth in past years, which could pose a risk.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.05, reflecting conservative leverage. The return on equity is strong at 22.15%, showcasing effective use of equity to generate profits. The equity ratio stands at 58.82%, indicating a stable financial structure. However, past fluctuations in equity and debt levels suggest potential risks.

Cash Flow

X Financial's cash flow performance is strong, with a significant increase in free cash flow and a high operating cash flow to net income ratio of 2.05. The free cash flow to net income ratio is nearly 1, indicating efficient cash generation relative to earnings. Despite this, historical volatility in cash flow growth rates could be a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.40B	5.87B	3.28B	2.32B	1.51B	-61.50M
Gross Profit	3.19B	3.91B	1.60B	1.32B	1.37B	-1.40B
EBITDA	2.94B	3.71B	1.47B	1.23B	1.20B	-1.59B
Net Income	1.79B	1.54B	1.19B	812.00M	825.41M	-1.31B
Balance Sheet
Total Assets	14.69B	11.82B	11.65B	8.84B	7.34B	7.50B
Cash, Cash Equivalents and Short-Term Investments	890.85M	2.94B	2.90B	2.37B	2.17B	1.66B
Total Debt	566.38M	341.23M	577.85M	81.51M	178.83M	367.42M
Total Liabilities	6.76B	4.87B	5.80B	4.08B	3.37B	4.42B
Stockholders Equity	7.93B	6.95B	5.85B	4.75B	3.98B	3.07B
Cash Flow
Free Cash Flow	0.00	1.51B	805.67M	316.65M	446.55M	-684.60M
Operating Cash Flow	0.00	1.52B	814.14M	322.70M	449.17M	-679.23M
Investing Cash Flow	0.00	122.03M	-1.11B	-913.39M	-2.35B	-3.70B
Financing Cash Flow	0.00	-1.94B	1.23B	576.35M	1.30B	4.49B

X Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.17
• 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 XYF, the sentiment is Negative. The current price of 7.17 is below the 20-day moving average (MA) of 10.59, below the 50-day MA of 12.32, and below the 200-day MA of 13.76, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 12.25 is Positive, neither overbought nor oversold. The STOCH value of 1.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XYF.

X Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XYF	72 Outperform	$287.44M	1.22	23.70%	7.59%	46.93%	52.53%
ATLC	70 Outperform	$892.59M	10.47	21.01%	―	25.29%	26.70%
YRD	70 Outperform	$388.83M	2.25	12.53%	9.33%	10.48%	-30.67%
LX	69 Neutral	$553.59M	2.35	15.88%	9.24%	-5.81%	123.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	67 Neutral	$784.03M	14.89	14.57%	―	2.31%	-27.81%
QD	63 Neutral	$797.56M	7.22	6.75%	―	-62.48%	1441.74%

X Financial Corporate Events

X Financial Reports Q3 2025 Financial Results with Increased Loan Activity

On November 20, 2025, X Financial reported its unaudited financial results for the third quarter ending September 30, 2025. The company experienced significant growth in its loan facilitation and origination, with a total loan amount of RMB33,641 million, marking an 18.7% increase from the previous year. The number of active borrowers rose by 24.2% year-over-year, reaching 2.44 million. Despite the growth in loan volumes, the company faced challenges with increased delinquency rates and a decline in operating income due to higher credit-related costs. Net income saw a 12.1% increase year-over-year, while the operating margin decreased due to elevated expenses.

X Financial Announces Annual Shareholders Meeting for December 18, 2025

On November 18, 2025, X Financial announced it will hold its Annual Shareholders Meeting on December 18, 2025, in Shenzhen, China. The meeting will not include any proposals for shareholder approval but will serve as an open forum for shareholders to discuss company affairs with management. This approach allows shareholders and beneficial owners to engage directly with the company’s leadership, potentially impacting future strategic directions and stakeholder relations.

X Financial Appoints New Chief Financial Strategy Officer

On September 25, 2025, X Financial announced the appointment of Mr. Noah Kauffman as the Chief Financial Strategy Officer. Mr. Kauffman brings over 20 years of experience in the financial markets sector, having previously worked at Intercontinental Exchange and Invesco. This strategic appointment is expected to enhance X Financial’s financial planning and analysis capabilities, potentially strengthening its market position.