Education
About Us
Working with TipRanks
Follow Us
Yiren Digital Ltd Sponsored ADR (YRD)
NYSE:YRD
Top Page
Yiren Digital
(NYSE:YRD)
Rating:75Outperform
Price Target:
$7.00
▲( 12.18% Upside)
Yiren Digital (YRD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$541.98M
Dividend Yield6.05%
Average Volume (3M)91.07K
Price to Earnings (P/E)2.5
Beta (1Y)0.51
Revenue Growth17.03%
EPS Growth-23.72%
CountryUS
Employees949
SectorFinancial
Sector Strength81
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.53
Shares Outstanding86,934,540
10 Day Avg. Volume90,987
30 Day Avg. Volume91,071
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.21
Price to Sales (P/S)0.00
P/FCF Ratio1.96
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 makes money primarily through interest income, service fees, and investment returns generated from its financial services platform. The company derives revenue from the interest rate spread between the interest earned on loans and the interest paid to investors. Additionally, Yiren Digital charges service fees for facilitating loan origination and management, as well as for wealth management services provided through its investment platform. The company also benefits from strategic partnerships with financial institutions, which enhance its service offerings and expand its customer base, further driving revenue growth.
Yiren Digital Key Performance Indicators (KPIs)
Any
Volume of Loans Facilitated
Measures the total value of loans processed, indicating the scale of operations and the company's ability to attract and service borrowers.
Measures the total value of loans processed, indicating the scale of operations and the company's ability to attract and service borrowers.
Data provided by:
Main Street Data
Main Street DataYiren Digital Financial Statement Overview
Summary
Yiren Digital's financials depict a company on a growth trajectory with strong profitability and a solid balance sheet. The income statement shows impressive revenue growth and profitability. The balance sheet indicates stability with low leverage but highlights rising liabilities. Cash flow generation is strong, but declining free cash flow trends need attention.Income Statement
Yiren Digital shows a robust income statement with a significant improvement in revenue and profitability. The Gross Profit Margin stands at an impressive 84.8%, indicating efficient cost management. The Net Profit Margin is also strong at 27.2%, reflecting solid profitability. Revenue growth of 18.6% from the previous year highlights a positive upward trajectory. However, slight declines in EBIT and EBITDA margins from 2023 to 2024 suggest some pressure on operational efficiency.80
Positive
Balance Sheet
The balance sheet is solid, with a low Debt-to-Equity Ratio of 0.004, demonstrating minimal leverage and financial risk. The Return on Equity is a healthy 16.6%, indicating good utilization of shareholder funds. The high Equity Ratio of 73.5% shows strong financial stability. However, the declining cash reserves and increasing liabilities compared to the previous year could pose potential risks if the trend continues.75
Positive
Cash Flow
Cash flow analysis reveals strong operational cash generation with an Operating Cash Flow to Net Income Ratio of 0.9, indicating a healthy conversion of income to cash. However, a negative Free Cash Flow growth rate of -34.7% from the previous year and negative investing cash flow indicate challenges in maintaining cash reserves while investing in growth. This suggests a need for cautious cash management moving forward.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.63B | 5.81B | 4.90B | 3.43B | 4.48B | 3.96B | Gross Profit |
| 4.76B | 4.92B | 3.92B | 2.66B | 3.72B | 2.86B | EBIT |
| 2.32B | 1.65B | 2.59B | 1.47B | 1.15B | 278.38M | EBITDA |
| 2.32B | 1.68B | 2.60B | 1.50B | 1.33B | 277.46M | Net Income Common Stockholders |
| 1.82B | 1.58B | 2.08B | 1.19B | 1.03B | -692.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 6.36B | 4.27B | 6.20B | 5.24B | 3.04B | 2.65B | Total Assets |
| 10.99B | 12.98B | 10.28B | 8.54B | 7.74B | 6.70B | Total Debt |
| 19.02M | 40.77M | 23.65M | 803.13M | 1.10B | 81.85M | Net Debt |
| -5.88B | -3.80B | -5.77B | -3.47B | -1.76B | -2.39B | Total Liabilities |
| 2.39B | 3.44B | 2.19B | 2.51B | 2.92B | 2.92B | Stockholders Equity |
| 8.60B | 9.54B | 8.09B | 6.03B | 4.82B | 3.78B |
| Cash Flow | Free Cash Flow | ||||
| 1.00B | 1.41B | 2.17B | 1.85B | 148.79M | 268.31M | Operating Cash Flow |
| 1.00B | 1.42B | 2.17B | 1.85B | 158.19M | 282.03M | Investing Cash Flow |
| -1.22B | -3.11B | 100.05M | 52.56M | -346.51M | -1.80B | Financing Cash Flow |
| -140.66M | -277.23M | -569.28M | -489.12M | 427.45M | 955.45M |
Yiren Digital Technical Analysis
Neutral
6.24
Price Trends
6.35
Negative
6.07
Positive
5.55
Positive
Market Momentum
<0.01
Positive
49.81
Neutral
56.51
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 6.24 is below the 20-day moving average (MA) of 6.32, below the 50-day MA of 6.35, and above the 200-day MA of 5.55, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 56.51 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 1 New Risks
1.
We may be unsuccessful in expanding and operating our business internationally, which could adversely affect our results of operations. Q4, 2023
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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.19B | 6.28 | 17.91% | 3.06% | 4.99% | 25.93% | |
80 Outperform | $736.16M | 3.68 | 24.00% | 1.86% | 20.28% | 27.31% | |
75 Outperform | $541.98M | 2.50 | 17.96% | 6.05% | 17.03% | -23.72% | |
74 Outperform | $1.30B | 7.30 | 12.60% | 1.96% | 7.53% | 37.86% | |
64 Neutral | $12.66B | 9.79 | 7.67% | 17015.07% | 12.23% | -6.06% | |
62 Neutral | $4.34B | ― | -10.30% | ― | 34.69% | 63.65% | |
53 Neutral | $467.27M | 42.03 | 0.80% | ― | 15.74% | 225.35% |
* Financial Sector Average
Performance Comparison
YRD
Yiren Digital
6.24
1.85
42.14%
QD
Qudian
2.83
1.14
67.46%
FINV
FinVolution Group
8.61
3.97
85.56%
LX
Lexinfintech Holdings
7.82
6.04
339.33%
XYF
X Financial
17.27
13.63
374.45%
UPST
Upstart Holdings
45.26
21.91
93.83%
Yiren Digital Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q4-2024)
| % Change Since: -25.27%|
Next Earnings Date:Jun 05, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.