Yiren Digital (YRD) AI Stock Analysis

• Market Cap: $468.32M
• Dividend Yield: 8.38%
• Average Volume (3M): 83.89K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.57
• Revenue Growth: 12.69%
• EPS Growth: -35.36%
• Country: US
• Employees: 949
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.57
• Shares Outstanding: 86,934,540
• 10 Day Avg. Volume: 77,900
• 30 Day Avg. Volume: 83,894
• 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: -0.22
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.02
• Enterprise Value/Ebitda: -0.08
• 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: 75 Outperform
• Price Target: $6.00 ▲(2.04% Upside)

Yiren Digital's strong financial performance and attractive valuation are key strengths, supported by robust profitability and a low P/E ratio. However, technical indicators suggest short-term weakness, and regulatory challenges pose risks. The company's strategic focus on AI and international expansion provides growth potential, but careful monitoring of cash flow and regulatory impacts is advised.

Yiren Digital Business Overview & Revenue Model

Company Description

Yiren Digital (YRD) is a leading healthcare technology company specializing in artificial intelligence and digital solutions for the medical sector. The company focuses on enhancing diagnostic accuracy and operational efficiency through its innovative products, which include AI-powered imaging analysis tools, digital health platforms, and big data analytics services. YRD serves various stakeholders in the healthcare ecosystem, including hospitals, clinics, and pharmaceutical companies, primarily in the Chinese market and expanding globally.

How the Company Makes Money

Yiren Digital generates revenue primarily through the sale of its AI-based diagnostic solutions and software products, which are licensed to healthcare providers and institutions. The company also earns income from subscription fees for its digital health platforms and analytics services. Additionally, YRD has formed strategic partnerships with healthcare organizations and technology firms to enhance its product offerings and expand its market reach. These collaborations often involve co-development projects, revenue-sharing agreements, and joint marketing efforts, contributing significantly to the company's overall earnings.

Yiren Digital Financial Statement Overview

Summary

Yiren Digital's financials indicate strong profitability and a solid balance sheet. The income statement shows impressive revenue growth and profitability, but there are concerns about declining cash reserves and increasing liabilities. Cash flow generation is strong but requires attention to reverse declining free cash flow trends.

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	1.32B	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	81.85M
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: 5.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 5.88 is above the 20-day moving average (MA) of 5.78, above the 50-day MA of 5.84, and below the 200-day MA of 5.98, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 16.78 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	77 Outperform	$509.71M	2.30	24.28%	4.31%	45.25%	46.56%
FINV	76 Outperform	$1.52B	4.05	18.75%	4.69%	8.41%	34.76%
YRD	75 Outperform	$468.32M	2.64	13.64%	8.38%	12.69%	-35.36%
LX	72 Outperform	$731.95M	3.43	14.86%	6.94%	3.11%	95.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	64 Neutral	$802.51M	11.69	4.57%	―	-39.25%	―
UPST	48 Neutral	$4.50B	―	-0.96%	―	60.62%	96.91%

Yiren Digital Corporate Events

Yiren Digital Reports Strong Q2 2025 Financial Results

Yiren Digital Ltd. reported its unaudited financial results for the second quarter of 2025, showcasing significant growth in its financial services sector. The company facilitated loans worth RMB20.3 billion, a 34% increase from the previous quarter, and served over 1.6 million borrowers. Despite a decrease in insurance brokerage revenue, the company achieved a 10% increase in total net revenue compared to the same period in 2024, driven by strong demand for small revolving loan products. The results highlight the company’s operational resilience and strategic focus on AI innovation, geographic expansion, and operational excellence, positioning it for sustained long-term success.