X Financial (XYF) AI Stock Analysis

• Market Cap: $219.34M
• Dividend Yield: 8.74%
• Average Volume (3M): 236.62K
• Price to Earnings (P/E): 0.9
• Beta (1Y): 0.50
• 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: 273,741
• 30 Day Avg. Volume: 236,618
• 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: -0.32
• Enterprise Value/Revenue: -0.01
• Enterprise Value/Gross Profit: -0.02
• Enterprise Value/Ebitda: -0.02
• 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: $5.50 ▼(-23.29% Downside)

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

Sustained Revenue Growth

Very strong multi-year revenue expansion (66.27% in the latest year) demonstrates durable platform demand and borrower adoption. Sustained top-line growth supports scale economics, recurring interest and fee income, and provides runway to invest in credit controls and product improvements over coming quarters.

High Operating Margins

Exceptionally high gross and operating margins indicate a scalable, technology-driven model with low incremental cost per loan. Margin resilience gives the company room to absorb elevated credit costs or invest in risk controls without immediately eroding profitability across the next several quarters.

Strong Cash Generation

Robust cash conversion (OCF/NetIncome ~2.05 and FCF near parity with income) indicates healthy cash generation versus accounting earnings. This strengthens liquidity, funds loan facilitation and provisioning, and reduces dependency on external funding, supporting durable operational flexibility over the medium term.

Negative Factors

Rising Delinquency Rates

Increasing short- and mid‑term delinquency rates signal worsening credit performance that can materially raise provision needs and loss severity. Persistently higher delinquencies will pressure underwriting, require more conservative origination, and could reduce recoverable yields over the next several quarters.

Sequential Revenue Decline / Moderated Origination

A deliberate pullback that produced a 13.7% sequential revenue decline reflects regulatory-driven moderation in loan origination. Slower origination constrains revenue growth and scale benefits, making margin preservation and customer retention more challenging across the coming 2-6 months.

Earnings Pressure from Provisions

Higher provisions and guarantee liabilities materially reduced sequential net income, directly eroding capital available for growth and shareholder returns. If elevated credit costs persist, they will limit earnings recovery and necessitate stricter underwriting or higher capital buffers over the medium term.

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 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 shows 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: Neutral
• 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 above the 20-day moving average (MA) of 5.84, above the 50-day MA of 6.34, and below the 200-day MA of 12.57, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 32.15 is Neutral, neither overbought nor oversold. The STOCH value of 13.86 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
ATLC	73 Outperform	$795.84M	9.36	21.01%	―	25.29%	26.70%
YRD	73 Outperform	$338.71M	1.96	12.53%	10.37%	10.48%	-30.67%
XYF	72 Outperform	$219.34M	0.93	23.70%	8.74%	46.93%	52.53%
LX	69 Neutral	$471.14M	1.97	16.09%	8.86%	-0.60%	135.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	67 Neutral	$620.69M	15.49	14.57%	―	2.31%	-27.81%

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.

The most recent analyst rating on (XYF) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on X Financial stock, see the XYF Stock Forecast page.

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.

The most recent analyst rating on (XYF) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on X Financial stock, see the XYF Stock Forecast page.