FinVolution Group Fundamental Analysis (NYSE: FINV)
FinVolution Group Fundamental Analysis (NYSE: FINV)
FinVolution Group (NYSE: FINV) shows moderate financial fundamentals with a PE ratio of 2.88, profit margin of 14.53%, and ROE of 4.56%. The company generates $13.7B in annual revenue with weak year-over-year growth of 1.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FINV's fundamental strength across five key dimensions:
Efficiency Score
WeakFINV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFINV trades at attractive valuation levels.
Growth Score
WeakFINV faces weak or negative growth trends.
Financial Health Score
ExcellentFINV maintains a strong and stable balance sheet.
Profitability Score
WeakFINV struggles to sustain strong margins.
Key Financial Metrics
Is FINV Expensive or Cheap?
P/E Ratio
FINV trades at 2.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FINV's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values FinVolution Group at 0.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.88 times EBITDA. This is generally considered low.
How Well Does FINV Make Money?
Net Profit Margin
For every $100 in sales, FinVolution Group keeps $14.53 as profit after all expenses.
Operating Margin
Core operations generate 17.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.56 in profit for every $100 of shareholder equity.
ROA
FinVolution Group generates $7.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FinVolution Group produces operating cash flow of $1.62B, showing steady but balanced cash generation.
Free Cash Flow
FinVolution Group produces free cash flow of $1.16B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.69 in free cash annually.
FCF Yield
FINV converts 19.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
31.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FINV Stacks Against Its Sector Peers
| Metric | FINV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.88 | 20.95 | Better (Cheaper) |
| ROE | 4.56% | 659.00% | Weak |
| Net Margin | 14.53% | -1611.00% (disorted) | Strong |
| Debt/Equity | 0.09 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 31.93 | 925.09 | Strong Liquidity |
| ROA | 7.27% | -586.00% (disorted) | Weak |
FINV outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FinVolution Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
104.63%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
46.99%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-0.78%
Industry Style: Value, Dividend, Cyclical
Declining