X Financial (XYF)
NYSE:XYF
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X Financial
(NYSE:XYF)
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Rating:73Outperform
Price Target:
$5.50
▼(-23.29% Downside)
Action:Reiterated
Date:06/01/26
The score is driven primarily by strong underlying financial statement quality (low leverage and solid cash generation) and highly attractive valuation metrics (very low P/E and high dividend yield). These positives are meaningfully offset by weak and cautious earnings-call fundamentals—sharp year-over-year contraction in originations/revenue/earnings, worsening delinquencies, and regulatory uncertainty—while technicals point to stabilization but not a strong long-term uptrend.
Positive Factors
Conservative balance sheet
Very low leverage and a high equity-to-asset ratio provide structural downside protection and funding optionality. Over the next several months this conservatism preserves liquidity, supports continued operations amid credit stress, and enables strategic responses without urgent refinancing risk.
Negative Factors
Steep decline in originations and scale
A material contraction in origination volume and active borrowers erodes the core fee and servicing base that drives recurring revenue. Loss of scale can persist for months, worsening unit economics, reducing partner leverage, and limiting ability to restore prior growth without increased marketing spend.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a high equity-to-asset ratio provide structural downside protection and funding optionality. Over the next several months this conservatism preserves liquidity, supports continued operations amid credit stress, and enables strategic responses without urgent refinancing risk.
Read all positive factors
X Financial (XYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$188.01M
Dividend Yield8.74%
Average Volume (3M)142.96K
Price to Earnings (P/E)0.2
Beta (1Y)0.78
Revenue Growth5.56%
EPS Growth-27.35%
CountryUS
Employees563
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)213.42
Shares Outstanding22,249,506
10 Day Avg. Volume162,375
30 Day Avg. Volume142,961
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.03
Price to Sales (P/S)0.04
P/FCF Ratio0.18
Enterprise Value/Market Cap-16.98
Enterprise Value/Revenue-0.48
Enterprise Value/Gross Profit-0.89
Enterprise Value/Ebitda-1.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 c...
How the Company Makes Money
X Financial makes money primarily through fees and other income earned from enabling and servicing consumer loans. Key revenue streams generally include: (1) loan facilitation/origination-related fees earned for matching borrowers with funding sou...
X Financial Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call portrays a company managing through a difficult environment with disciplined cost and origination pullbacks that have improved sequential operating metrics and preserved liquidity, but facing substantial year-over-year declines in origination, revenue and earnings alongside worsening longer-dated delinquencies and significant regulatory uncertainty. Positive operational changes and balance sheet strength are counterbalanced by steep declines in scale, elevated provisions versus prior year, and material credit stress.Positive Updates
Disciplined Cost Control and Reduced Marketing Spend
Total operating costs and expenses fell to RMB 1.04 billion, down 24.1% year-over-year and 28.5% sequentially. Borrower acquisition and marketing expense was sharply reduced from RMB 709 million in Q1 2025 to RMB 219.8 million in Q1 2026 (≈ -69% YoY), reflecting a deliberate shift to prioritize capital efficiency over volume.
Negative Updates
Sharp Decline in Loan Origination Volume
Facilitated and originated loans totaled RMB 14.63 billion in Q1 2026, a decline of 58.4% year-over-year and 35.8% sequentially, reflecting a deliberate pullback in origination activity and weaker borrower demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Disciplined Cost Control and Reduced Marketing Spend
Total operating costs and expenses fell to RMB 1.04 billion, down 24.1% year-over-year and 28.5% sequentially. Borrower acquisition and marketing expense was sharply reduced from RMB 709 million in Q1 2025 to RMB 219.8 million in Q1 2026 (≈ -69% YoY), reflecting a deliberate shift to prioritize capital efficiency over volume.
Read all positive updates
Company Guidance
Guidance: management reiterated a cautious near‑term outlook given evolving regulatory uncertainty and said Q2 2026 total loan originations are expected to be RMB 11.5–12.5 billion, with continued focus on capital preservation, disciplined origination and cost control; for context Q1 originations were RMB 14.63 billion (‑58.4% YoY, ‑35.8% QoQ), active borrowers ~956,520 (‑60.6% YoY, ‑43.5% QoQ), ~1.25 million loans facilitated, average loan size RMB 11,741 and outstanding loan balance RMB 35.3 billion (‑39.6% YoY), with delinquencies at 2.61% (31–60 days) and 9.95% (91–180 days). Q1 financials included total net revenue RMB 1.18 billion (USD 170.5M, ‑39.3% YoY), operating costs RMB 1.04 billion (USD 150.1M), provisions RMB 282.9 million (USD 41M), operating margin 12%, net income RMB 37.9 million (USD 5.5M), net profit margin 3.2% and ROE 1.9%; balance sheet: total assets ~RMB 13.6 billion, shareholders’ equity ~RMB 7.8 billion (equity-to-asset ~57%), cash including restricted ~RMB 2.4 billion; capital returns: repurchased ~1.8M ADS for ~USD 8.2M YTD with ~USD 39.8M remaining under the repurchase program through Nov 30, 2026.X Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.43B | 5.87B | 3.28B | 2.32B | 1.51B |
| Gross Profit | 5.47B | 3.91B | 1.60B | 1.32B | 1.37B |
| EBITDA | 1.71B | 3.71B | 1.47B | 1.23B | 1.20B |
| Net Income | 1.42B | 1.54B | 1.19B | 812.00M | 825.41M |
Balance Sheet | |||||
| Total Assets | 14.68B | 11.82B | 11.65B | 8.84B | 7.34B |
| Cash, Cash Equivalents and Short-Term Investments | 3.38B | 2.94B | 2.90B | 2.37B | 2.17B |
| Total Debt | 409.79M | 341.23M | 577.85M | 81.51M | 178.83M |
| Total Liabilities | 6.82B | 4.87B | 5.80B | 4.08B | 3.37B |
| Stockholders Equity | 7.84B | 6.95B | 5.85B | 4.75B | 3.98B |
Cash Flow | |||||
| Free Cash Flow | 1.45B | 1.51B | 805.67M | 316.65M | 446.55M |
| Operating Cash Flow | 1.47B | 1.52B | 814.14M | 322.70M | 449.17M |
| Investing Cash Flow | -1.07B | 122.03M | -1.11B | -913.39M | -2.35B |
| Financing Cash Flow | 79.24M | -1.94B | 1.23B | 576.35M | 1.30B |
X Financial Technical Analysis
Positive
7.17
Price Trends
4.48
Positive
4.76
Positive
7.76
Negative
Market Momentum
0.04
Positive
52.65
Neutral
69.09
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 7.17 is above the 20-day moving average (MA) of 4.81, above the 50-day MA of 4.48, and below the 200-day MA of 7.76, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 69.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XYF.
X Financial Risk Analysis
X Financial disclosed 84 risk factors in its most recent earnings report. X Financial 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
X Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $370.18M | 1.71 | 12.17% | 8.86% | -3.40% | 8.62% | |
73 Outperform | $188.01M | 0.20 | 13.36% | 8.74% | 5.56% | -27.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.30B | 9.67 | 21.67% | ― | 68.59% | 30.27% | |
60 Neutral | $118.78M | 7.61 | 0.54% | 10.37% | -1.41% | -98.13% | |
59 Neutral | $815.03M | 22.37 | 6.37% | ― | 3.70% | ― |
* Financial Sector Average
XYF
X Financial
4.91
-11.39
-69.87%
WRLD
World Acceptance
167.71
12.17
7.82%
ATLC
Atlanticus Holdings
82.61
33.92
69.67%
YRD
Yiren Digital
1.34
-4.66
-77.67%
LX
Lexinfintech Holdings
2.20
-4.27
-66.00%
X Financial Corporate Events
X Financial Profit Slumps as Loan Volumes Plunge on Tighter Credit in Q1 2026
May 27, 2026
On May 27, 2026, X Financial reported unaudited results for the quarter ended March 31, 2026, showing a sharp contraction in lending volumes and borrower activity as it tightened credit standards. Total loan amount facilitated fell 58.4% year over...
X Financial’s 2025 Results Show Strong Growth but Surging Delinquencies Hit Q4 Profit
Mar 25, 2026
On March 25, 2026, X Financial reported unaudited results for the fourth quarter and full year 2025, showing that quarterly loan origination fell 29.5% year-on-year to RMB22.8 billion while full-year volume rose 24.5% to RMB130.6 billion, even as ...
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.