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Yiren Digital Ltd Sponsored ADR (YRD)
NYSE:YRD
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Yiren Digital
(NYSE:YRD)
84Outperform
Yiren Digital (YRD) vs. S&P 500 (SPY)
Market Cap
$606.23M
Dividend Yield2.59%
Average Volume (3M)183.96K
Price to Earnings (P/E)2.8
Beta (1Y)0.33
Revenue Growth17.07%
EPS Growth-8.81%
CountryUS
Employees754
SectorFinancial
Sector Strength84
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)2.51
Shares Outstanding86,934,540
10 Day Avg. Volume230,457
30 Day Avg. Volume183,961
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.44
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Yiren Digital Business Overview & Revenue Model
Company DescriptionYiren Digital Ltd., through its subsidiaries, operates as an online consumer finance marketplace that connects borrowers and investors in the People's Republic of China. It provides loan facilitation services; and post-origination services, such as cash processing, collection, and SMS services. The company's loan products portfolio includes unsecured consumer loans; secured consumer loan, which include secured financial leasing, auto-secured, and property-secured loans; and small business loans. It also distributes short-term cash management, mutual fund investment, insurance, and securities and stock products. In addition, the company provides online investor education services, which include a range of investment and trading topics, and various types of training programs on wealth planning, market insights, and investment strategies; consultancy information technology support; referral; and IT, system maintenance, and customer support services. Further, it is involved in the provision of services for financing lease and insurance brokerage businesses. The company offers its products through www.yxpuhui.com, and a wealth management website and mobile application. As of December 31, 2020, it had 60 fixed income products, 810 mutual fund products, and 296 insurance products. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. is a subsidiary of Creditease Holdings (Cayman) Limited.
How the Company Makes MoneyYiren Digital generates revenue through its consumer finance platform, which primarily involves facilitating loans between borrowers and investors. The company earns money by charging service fees on the loans it processes, which include origination fees from borrowers and service fees from investors. Additionally, Yiren Digital offers wealth management services, generating revenue from advisory fees and management fees on the investment products it provides. The company's partnerships with financial institutions and technology providers also play a significant role in enhancing its service offerings and expanding its market reach, thereby contributing to its revenue growth.
Yiren Digital Financial Statement Overview
Summary
Yiren Digital shows strong financial health with robust revenue and profit growth, a solid balance sheet with low leverage, and excellent cash flow management. The company's financials are indicative of strong operational efficiency and financial stability.Income Statement
Yiren Digital has shown robust growth in revenue and profitability over the years. The gross profit margin has been consistently strong, reaching approximately 80% in the latest annual report. The net profit margin has improved significantly, moving from a loss in 2020 to a notable profit margin of around 42.5% in 2023. Revenue growth is impressive, with a significant increase of approximately 42.5% from 2022 to 2023. EBIT and EBITDA margins are also strong, indicating efficient operational management.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a strong equity position. The debt-to-equity ratio is exceptionally low, reflecting minimal leverage and financial risk. The return on equity (ROE) is robust at approximately 25.7% for 2023, highlighting effective use of shareholder funds. Additionally, the equity ratio is strong at around 78.7%, indicating a stable financial structure with significant asset financing through equity.90
Very Positive
Cash Flow
Yiren Digital demonstrates strong cash flow management, with a substantial increase in free cash flow in the latest year. The operating cash flow to net income ratio is healthy, suggesting good cash generation from operations. The free cash flow to net income ratio is also strong, indicating efficient conversion of earnings into free cash flow. The company has shown consistent growth in free cash flow over the past years.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.46B | 4.90B | 3.43B | 4.48B | 3.96B | 8.62B | Gross Profit |
| 4.55B | 3.92B | 2.66B | 3.72B | 2.86B | 7.95B | EBIT |
| 2.67B | 2.59B | 1.47B | 1.15B | 278.38M | 733.42M | EBITDA |
| 2.67B | 2.60B | 1.50B | 1.33B | 277.46M | 1.25B | Net Income Common Stockholders |
| 2.02B | 2.08B | 1.19B | 1.03B | -692.75M | 1.16B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.86B | 6.20B | 5.24B | 3.04B | 2.65B | 3.66B | Total Assets |
| 7.52B | 10.28B | 8.54B | 7.74B | 6.70B | 9.76B | Total Debt |
| 192.42M | 23.65M | 803.13M | 1.10B | 81.85M | 282.33M | Net Debt |
| -1.84B | -5.77B | -3.47B | -1.76B | -2.39B | -2.92B | Total Liabilities |
| 2.40B | 2.19B | 2.51B | 2.92B | 2.92B | 5.27B | Stockholders Equity |
| 5.12B | 8.09B | 6.03B | 4.82B | 3.78B | 4.49B |
| Cash Flow | Free Cash Flow | ||||
| 1.00B | 2.17B | 1.85B | 148.79M | 268.31M | 226.16M | Operating Cash Flow |
| 1.00B | 2.17B | 1.85B | 158.19M | 282.03M | 274.17M | Investing Cash Flow |
| -1.22B | 100.05M | 52.56M | -346.51M | -1.80B | 1.11B | Financing Cash Flow |
| -140.66M | -569.28M | -489.12M | 427.45M | 955.45M | -1.15B |
Yiren Digital Technical Analysis
Neutral
6.95
Price Trends
6.35
Positive
5.78
Positive
5.32
Positive
Market Momentum
0.26
Positive
50.11
Neutral
24.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YRD, the sentiment is Neutral. The current price of 6.95 is below the 20-day moving average (MA) of 7.06, above the 50-day MA of 6.35, and above the 200-day MA of 5.32, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 24.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YRD.
Yiren Digital Risk Analysis
Yiren Digital disclosed 99 risk factors in its most recent earnings report. Yiren Digital 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
Yiren Digital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $606.23M | 2.76 | 17.96% | 2.59% | 17.07% | -8.81% | |
84 Outperform | $7.36B | 7.83 | 27.15% | 2.58% | 3.88% | 56.29% | |
79 Outperform | $1.77B | 11.96 | 10.77% | 1.13% | 10.06% | 0.04% | |
77 Outperform | $2.56B | 7.98 | 16.47% | 2.36% | 2.51% | 7.06% | |
74 Outperform | $616.24M | 3.88 | 46.42% | 7.53% | 19.46% | -22.51% | |
71 Outperform | $1.39B | 24.78 | 10.62% | ― | 43.68% | 77.18% | |
64 Neutral | $14.46B | 10.12 | 8.75% | 4.25% | 17.00% | -11.86% |
* Financial Sector Average
Performance Comparison
YRD
Yiren Digital
6.95
2.43
53.76%
FINV
FinVolution Group
9.86
5.15
109.34%
LX
Lexinfintech Holdings
11.06
9.36
550.59%
QFIN
Qifu Technology
44.45
26.84
152.41%
TIGR
Up Fintech Holding
8.83
5.42
158.94%
JFIN
Jiayin Group
11.91
5.06
73.87%
Yiren Digital Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -19.28% | Next Earnings Date: Jun 5, 2025
Earnings Call Sentiment Neutral
Yiren Digital's earnings call highlighted notable achievements in customer segment upgrades, AI integration, and international business profitability, alongside significant financial services growth. However, challenges were noted in the insurance segment, with declines in premiums and increased receivables allowances. Despite higher expenses impacting net income, the overall sentiment reflects a strategic focus on long-term growth and profitability.Highlights
Customer Segment Reshape and Upgrade
Yiren Digital reshaped and upgraded customer segments in the Financial Services business, resulting in improved asset quality and paving the way for sustainable development.
AI Integration and Efficiency Improvements
Integrated proprietary AI systems into operations, achieving significant improvements in operational efficiency and user experience, with 81% of day-one overdue cases handled by AI robots.
International Business Profitability
International Business achieved profitability by upgrading the customer mix and targeting higher-quality borrowers, especially in the Philippines.
Financial Services Growth
Total loan volumes in Q4 2024 reached RMB15.4 billion, a 32% year-over-year increase, with an impressive 49% increase for the full year 2024 compared to 2023.
AI-Driven Cost Savings
AI-powered systems led to labor cost savings of RMB1.9 million in Q4 2024 and approximately RMB9 million for the year, with additional savings of RMB44 million from enhanced funding allocation efficiency.
Insurance Brokerage Digitization
The Insurance Brokerage segment adopted a digitization model, enhancing client acquisition through social media and achieving high renewal rates for Life Insurance products.
Cash Dividend Announcement
Announced a cash dividend of US$0.22 per ADS for the second half of 2024, with distribution expected on May 15, 2025.
Lowlights
Insurance Segment Decline
Insurance premiums in 2024 totaled RMB4.4 billion, down 10% year-over-year, with a significant drop in life insurance sales due to industry-wide regulatory impacts.
Consumption and Lifestyle Revenue Drop
Strategic scaling back of product offerings led to a 25% year-over-year drop in revenue for the Consumption and Lifestyle segment in Q4 2024.
Increased Allowance for Receivables
Allowance for contract assets and receivables in Q4 2024 was RMB203 million, up 103% year-over-year, reflecting a prudent response to market conditions.
Reduced Net Income
Net income for Q4 2024 was RMB331 million, a 42% year-over-year decrease. Total net income for 2024 was RMB1,582 million, down 24% compared to the previous year.
Higher Marketing and R&D Expenses
Sales and marketing expenses increased by 45% year-over-year in Q4 2024, and R&D expenses increased by 246% year-over-year, driven by investments in AI and customer acquisition.
Company Guidance
During Yiren Digital's fourth-quarter and fiscal year 2024 earnings call, the company provided guidance on several key metrics reflecting its strong performance and future outlook. Total loan volumes in the fourth quarter reached RMB15.4 billion, a 32% increase year-over-year, contributing to a full-year total of RMB53.6 billion, up 49% from the previous year. The financial services business saw significant improvements in asset quality, with the average first payment default rate dropping by 13 basis points compared to 2023. The delinquency rates for the 1 to 30-day and 61 to 90-day buckets decreased by 20 and 10 basis points, respectively, from the previous quarter. The company's international business achieved profitability and expects total loan volume in the Philippines to double in 2025. AI development was a priority, with research and development expenses increasing by 177% year-over-year to RMB412 million. The AI systems contributed to cost savings of RMB44 million for the year. The insurance brokerage segment faced a challenging year, with total premiums over RMB4.4 billion, down 10% year-over-year, but showed strong life insurance renewal rates of 96%. Yiren Digital announced a cash dividend of US$0.22 per ADS for the second half of 2024, reflecting its commitment to shareholder returns. Looking ahead, the company expects revenue for 2025 to be between RMB5.5 billion and RMB6.5 billion, with a healthy net profit margin.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.