Yiren Digital (YRD) AI Stock Analysis

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Yiren Digital

(NYSE:YRD)

Rating:76Outperform

Price Target:

$7.00

▲(10.41%Upside)

Yiren Digital's overall stock score is bolstered by strong financial performance and a positive earnings call, indicating growth and profitability potential. The valuation suggests the stock may be undervalued, enhancing its appeal. Technical analysis provides a neutral outlook, with no clear momentum direction.

Yiren Digital (YRD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$583.41M

Dividend Yield3.25%

Average Volume (3M)124.99K

Price to Earnings (P/E)3.0

Beta (1Y)0.52

Revenue Growth12.45%

EPS Growth-36.64%

CountryUS

Employees949

SectorFinancial

Sector Strength78

IndustryFinancial - Credit Services

Share Statistics

EPS (TTM)0.39

Shares Outstanding86,934,540

10 Day Avg. Volume200,994

30 Day Avg. Volume124,994

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)0.13

Price to Sales (P/S)0.00

P/FCF Ratio0.44

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. (YRD) is a leading fintech company in China, primarily focused on providing inclusive wealth management and personal financial services. The company operates through its online platform, Yiren Wealth, which caters to both individual investors and borrowers. It leverages advanced technology to offer a wide range of financial products, including investment, insurance, and credit solutions, making financial services more accessible and efficient for its users.

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

Volume of Loans Facilitated
Indicates the total amount of loans processed, reflecting the company's lending capacity and market demand for its financial products.

Chart InsightsYiren Digital's loan facilitation volume has shown a robust upward trajectory, culminating in a 49% increase in 2024 compared to the previous year. The earnings call highlights strategic customer segment upgrades and AI integration as key drivers of this growth, enhancing asset quality and operational efficiency. Despite challenges in the insurance segment, the company's focus on international expansion and AI-driven cost savings positions it well for continued momentum. The strong loan volume growth reflects effective execution of strategic initiatives and a positive outlook for 2025.

Data provided by:

Main Street Data

Yiren Digital Earnings Call Summary

Earnings Call Date:Jun 12, 2025

(Q4-2024)

% Change Since: -14.67%|

Next Earnings Date:Aug 14, 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.

Yiren Digital Financial Statement Overview

Summary

Yiren Digital's financial performance is strong, with impressive income statement metrics such as a high gross profit margin of 84.8% and a solid net profit margin of 27.2%. The balance sheet is stable with low leverage, although rising liabilities and declining cash reserves pose potential risks. Cash flow generation is robust but declining free cash flow trends require attention.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
4.09B	4.27B	6.20B	5.24B	3.04B	2.65B
	Total Assets
12.46B	12.98B	10.28B	8.54B	7.74B	6.70B
	Total Debt
15.23M	40.77M	23.65M	803.13M	1.10B	81.85M
	Net Debt
-3.69B	-3.80B	-5.77B	-3.47B	-1.76B	-2.39B
	Total Liabilities
3.17B	3.44B	2.19B	2.51B	2.92B	2.92B
	Stockholders Equity
9.28B	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

Technical Analysis Sentiment

Negative

Last Price6.34

Price Trends

50DMA

6.25

Positive

100DMA

6.36

Negative

200DMA

5.71

Positive

Market Momentum

MACD

0.17

Negative

RSI

45.54

Neutral

STOCH

45.54

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YRD, the sentiment is Negative. The current price of 6.34 is below the 20-day moving average (MA) of 6.59, above the 50-day MA of 6.25, and above the 200-day MA of 5.71, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
FINV	82 Outperform	$2.25B	6.46	17.91%	3.11%	4.99%	25.93%
XYF	80 Outperform	$810.11M	3.85	24.00%	1.75%	20.28%	27.31%
YRD	76 Outperform	$583.41M	2.97	14.69%	3.25%	12.45%	-36.64%
LX	73 Outperform	$1.24B	6.63	12.60%	2.99%	7.53%	37.86%
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%
QD	64 Neutral	$487.12M	12.29	2.77%	―	0.54%	―
UPST	63 Neutral	$5.51B	―	-10.30%	―	34.69%	63.65%

* Financial Sector Average

Performance Comparison

YRD

Yiren Digital

6.34

1.85

41.20%

Qudian

2.93

1.17

66.48%

FINV

FinVolution Group

8.70

4.10

89.13%

Lexinfintech Holdings

7.02

5.42

338.75%

XYF

X Financial

18.40

14.19

337.05%

UPST

Upstart Holdings

52.02

29.63

132.34%

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.