Yiren Digital (YRD) AI Stock Analysis

• Market Cap: $502.89M
• Dividend Yield: 6.63%
• Average Volume (3M): 86.14K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.58
• Revenue Growth: 12.69%
• EPS Growth: -35.36%
• Country: US
• Employees: 949
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Credit Services
• EPS (TTM): 0.57
• Shares Outstanding: 86,934,540
• 10 Day Avg. Volume: 97,158
• 30 Day Avg. Volume: 86,140
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.21
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.02
• Enterprise Value/Ebitda: -0.06
• 1Y Price Target: $6.50
• Price Target Upside: 10.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $6.50 ▲(10.54% Upside)

Yiren Digital's overall stock score reflects strong financial performance and attractive valuation, supported by robust profitability and a low P/E ratio. The earnings call provided positive guidance, highlighting growth in loan volume and AI-driven efficiencies. However, regulatory challenges and mixed technical indicators present potential risks. The company is well-positioned but should monitor liquidity and regulatory impacts closely.

Yiren Digital Business Overview & Revenue Model

Company Description

Yiren 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 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 demonstrates strong financial performance with robust profitability and a solid balance sheet. The income statement shows impressive revenue growth and profitability metrics, although there are slight declines in operational efficiency. The balance sheet is stable with low leverage, but rising liabilities and declining cash reserves require attention. Cash flow generation is strong, but declining free cash flow trends suggest a need for cautious cash management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.81B	4.90B	3.43B	4.48B	3.96B
Gross Profit	4.92B	3.92B	2.66B	3.72B	2.86B
EBITDA	1.68B	2.60B	1.50B	1.33B	277.46M
Net Income	1.58B	2.08B	1.19B	1.03B	-692.75M
Balance Sheet
Total Assets	12.98B	10.28B	8.54B	7.74B	6.70B
Cash, Cash Equivalents and Short-Term Investments	4.27B	6.20B	5.24B	3.04B	2.65B
Total Debt	40.77M	23.65M	803.13M	1.10B	81.85M
Total Liabilities	3.44B	2.19B	2.51B	2.92B	2.92B
Stockholders Equity	9.54B	8.09B	6.03B	4.82B	3.78B
Cash Flow
Free Cash Flow	1.41B	2.17B	1.85B	148.79M	268.31M
Operating Cash Flow	1.42B	2.17B	1.85B	158.19M	282.03M
Investing Cash Flow	-3.11B	100.05M	52.56M	-346.51M	-1.80B
Financing Cash Flow	-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 below the 20-day moving average (MA) of 5.90, below the 50-day MA of 5.98, and below the 200-day MA of 5.90, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 18.30 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	82 Outperform	$635.05M	2.87	24.28%	2.60%	45.25%	46.56%
FINV	79 Outperform	$2.09B	5.56	18.75%	3.37%	8.41%	34.76%
YRD	76 Outperform	$502.89M	2.86	13.64%	6.63%	12.69%	-35.36%
LX	73 Outperform	$1.06B	4.99	14.86%	4.83%	3.11%	95.40%
QD	70 Outperform	$752.98M	11.01	4.57%	―	-39.25%	―
Sector *	68 Neutral	$17.95B	11.54	10.27%	3.74%	9.64%	1.17%
UPST	49 Neutral	$7.05B	―	-0.96%	―	60.62%	96.91%