X Financial (XYF) AI Stock Analysis

• Market Cap: $606.22M
• Dividend Yield: 3.72%
• Average Volume (3M): 196.84K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.14
• Revenue Growth: 45.25%
• EPS Growth: 46.56%
• Country: US
• Employees: 563
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.66
• Shares Outstanding: 25,942,728
• 10 Day Avg. Volume: 186,554
• 30 Day Avg. Volume: 196,839
• 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: 0.42
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: $16.00
• Price Target Upside: 12.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: $16.00 ▲(12.28% Upside)

X Financial's strong financial performance and attractive valuation are the primary drivers of its high score. The company's robust earnings growth and effective capital return strategies are tempered by regulatory challenges and mixed technical indicators, resulting in a balanced outlook.

X Financial Business Overview & Revenue Model

Company Description

X Financial provides personal finance services in the People's Republic of China. The company offers services as an online marketplace connecting borrowers and investors. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners, as well as Xiaoying revolving loan. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as loans, money market, and insurance products; and loan facilitation services to other platforms. X Financial was founded in 2014 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

X Financial generates revenue through several key streams, primarily from interest income on loans issued to consumers. The company utilizes a direct lending model, where it funds loans directly and earns interest over the loan's duration. Additionally, X Financial earns fees from other services, such as loan origination fees and service fees related to its financial products. The company has established partnerships with various financial institutions and technology providers, which help enhance its lending capabilities and expand its customer base. Furthermore, X Financial benefits from the increasing adoption of digital financial services in China, creating a favorable environment for growth and profitability.

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	6.51B	5.87B	4.81B	3.56B	1.51B	-61.50M
Gross Profit	6.17B	3.91B	1.60B	-488.13M	-527.09M	-2.38B
EBITDA	3.44B	3.71B	1.51B	1.08B	1.31B	0.00
Net Income	1.75B	1.54B	1.19B	812.00M	825.41M	-1.31B
Balance Sheet
Total Assets	13.69B	11.82B	11.65B	8.84B	7.34B	7.50B
Cash, Cash Equivalents and Short-Term Investments	3.29B	2.94B	1.20B	2.37B	2.17B	1.66B
Total Debt	401.50M	341.23M	577.85M	81.51M	178.83M	367.42M
Total Liabilities	5.97B	4.87B	5.80B	4.08B	3.37B	4.42B
Stockholders Equity	7.72B	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: Positive
• Last Price: 14.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYF, the sentiment is Positive. The current price of 14.25 is above the 20-day moving average (MA) of 14.04, above the 50-day MA of 14.03, and above the 200-day MA of 13.02, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 58.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XYF.

X Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XYF	82 Outperform	$606.22M	2.74	24.28%	3.72%	45.25%	46.56%
YRD	76 Outperform	$570.28M	3.21	13.64%	6.90%	12.69%	-35.36%
WRLD	75 Outperform	$963.96M	11.92	19.08%	―	0.77%	12.08%
LX	73 Outperform	$893.48M	4.19	14.86%	6.03%	3.11%	95.40%
QD	70 Outperform	$761.23M	10.89	4.57%	―	-39.25%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ATLC	66 Neutral	$818.89M	9.52	22.83%	―	19.27%	34.76%

X Financial Corporate Events

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.

X Financial Reports Strong Q2 2025 Growth in Loan Facilitation

X Financial reported its unaudited financial results for the second quarter of 2025, showing substantial growth in loan facilitation and origination. The total loan amount facilitated and originated increased by 71.4% year-over-year, reaching RMB38,994 million, while the number of active borrowers rose by 73.7%. The company also reported a 65.6% increase in total net revenue, driven by higher loan volumes, and maintained strong operating margins despite increased investments in user acquisition. The delinquency rates for loans past due improved, indicating better credit performance.