Yiren Digital (YRD) AI Stock Analysis

• Market Cap: $381.05M
• Dividend Yield: 9.52%
• Average Volume (3M): 74.77K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.61
• Revenue Growth: 10.48%
• EPS Growth: -30.67%
• Country: US
• Employees: 949
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.51
• Shares Outstanding: 86,934,540
• 10 Day Avg. Volume: 98,117
• 30 Day Avg. Volume: 74,765
• PEG Ratio: -0.04
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 1.07
• Enterprise Value/Market Cap: -0.19
• Enterprise Value/Revenue: -0.01
• Enterprise Value/Gross Profit: -0.01
• Enterprise Value/Ebitda: -0.05
• 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: 70 Outperform
• Price Target: $5.00 ▲(13.38% Upside)

Yiren Digital's overall stock score reflects a mix of strong financial performance and attractive valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's robust profitability and low valuation metrics are significant strengths, while technical analysis and regulatory challenges present risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Yiren Digital's products and services, supporting long-term business expansion and market presence.

AI-Driven Operational Efficiency

Enhanced operational efficiency through AI improves customer engagement and profiling, potentially leading to higher customer retention and reduced costs.

Strong Cash Position

A strong cash position provides financial flexibility for strategic investments and navigating potential market challenges, ensuring business resilience.

Negative Factors

Regulatory and Credit Risk Challenges

Regulatory uncertainties and credit risks can hinder business operations and growth, requiring careful management to mitigate potential negative impacts.

Decline in Borrower Numbers

A decline in borrower numbers may limit revenue growth and market share, necessitating strategic adjustments to attract and retain customers.

Pressure on Profitability

Decreased profitability margins indicate challenges in maintaining cost efficiency and profitability, potentially affecting long-term financial health.

Yiren Digital Business Overview & Revenue Model

Company Description

Yiren Digital (YRD) is a leading healthcare technology company specializing in artificial intelligence and big data solutions for the healthcare sector. The company focuses on enhancing clinical decision-making and improving patient outcomes through its core products, which include AI-powered diagnostic tools and healthcare management platforms. YRD operates primarily in the digital health and medical imaging sectors, aiming to bridge the gap between technology and healthcare to deliver innovative solutions for hospitals and healthcare providers.

How the Company Makes Money

Yiren Digital generates revenue through a combination of product sales, subscription services, and strategic partnerships. Key revenue streams include the sale of its AI diagnostic tools, which are sold to hospitals and clinics, and subscription fees for its healthcare management platforms that provide ongoing support and updates. Additionally, YRD collaborates with various healthcare institutions and technology partners to develop customized solutions, often resulting in long-term contracts that contribute to consistent revenue. The company also benefits from government grants and funding aimed at advancing healthcare technology, which further supports its financial growth.

Yiren Digital Financial Statement Overview

Summary

Yiren Digital demonstrates strong profitability with an impressive Gross Profit Margin of 84.8% and a solid Net Profit Margin of 27.2%. The balance sheet is stable with a low Debt-to-Equity Ratio of 0.004, but rising liabilities and declining cash reserves are concerns. Cash flow is strong, but negative Free Cash Flow growth requires 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	5.81B	4.90B	3.43B	4.48B	3.96B
Gross Profit	5.37B	4.92B	3.92B	2.66B	3.72B	2.86B
EBITDA	1.33B	1.68B	2.60B	1.52B	1.33B	277.46M
Net Income	1.29B	1.58B	2.08B	1.19B	1.03B	-692.75M
Balance Sheet
Total Assets	14.45B	12.98B	10.28B	8.54B	7.74B	6.70B
Cash, Cash Equivalents and Short-Term Investments	4.10B	4.27B	6.31B	5.24B	3.04B	2.65B
Total Debt	38.28M	40.77M	23.65M	803.13M	1.10B	582.35M
Total Liabilities	4.47B	3.44B	2.19B	2.51B	2.92B	2.92B
Stockholders Equity	9.98B	9.54B	8.09B	6.03B	4.82B	3.78B
Cash Flow
Free Cash Flow	889.87M	1.41B	2.17B	1.85B	148.79M	268.31M
Operating Cash Flow	889.87M	1.42B	2.17B	1.85B	158.19M	282.03M
Investing Cash Flow	-897.79M	-3.11B	100.05M	52.56M	-346.51M	-1.80B
Financing Cash Flow	367.01M	-277.23M	-569.28M	-489.12M	427.45M	955.45M

Yiren Digital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 4.41 is below the 20-day moving average (MA) of 5.08, below the 50-day MA of 5.62, and below the 200-day MA of 5.95, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 28.13 is Positive, neither overbought nor oversold. The STOCH value of 15.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YRD.

Yiren Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XYF	73 Outperform	$299.56M	1.27	23.70%	7.28%	46.93%	52.53%
FINV	71 Outperform	$1.28B	3.43	17.76%	5.50%	9.32%	29.40%
YRD	70 Outperform	$381.05M	2.21	12.53%	9.52%	10.48%	-30.67%
LX	69 Neutral	$555.27M	2.36	15.88%	9.21%	-5.81%	123.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	63 Neutral	$805.82M	7.29	6.75%	―	-62.48%	1441.74%
UPST	54 Neutral	$4.09B	184.64	4.81%	―	73.29%	―

Yiren Digital Corporate Events

Yiren Digital Reports Q3 2025 Financial Results Amid Industry Challenges

Yiren Digital Ltd. announced its financial results for the third quarter of 2025, highlighting a 51% increase in total loans facilitated compared to the same period in 2024, reaching RMB20.2 billion. Despite a decrease in the number of borrowers served due to strategic credit policy tightening, the company saw a 70% increase in revenue from its financial services business, driven by demand for small revolving loans and repeat borrowing. The insurance brokerage business experienced growth in internet insurance, although traditional lines saw a decrease in revenue. The company maintained a strong cash position and continued to invest in fintech innovations, despite challenges such as industry-wide credit risk fluctuations and declining profitability due to increased provisions and regulatory impacts.