Yiren Digital Ltd.
Yiren Digital Ltd. Fundamental Analysis
Yiren Digital Ltd. (YRD) shows moderate financial fundamentals with a PE ratio of 9.22, profit margin of 0.92%, and ROE of 0.54%. The company generates $11.4B in annual revenue with strong year-over-year growth of 18.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.8/100 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 YRD's fundamental strength across five key dimensions:
Efficiency Score
WeakYRD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentYRD trades at attractive valuation levels.
Growth Score
ModerateYRD shows steady but slowing expansion.
Financial Health Score
ModerateYRD shows balanced financial health with some risks.
Profitability Score
ModerateYRD maintains healthy but balanced margins.
Key Financial Metrics
Is YRD Expensive or Cheap?
P/E Ratio
YRD trades at 9.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, YRD's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Yiren Digital Ltd. at 0.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.61 times EBITDA. This signals the market has high growth expectations.
How Well Does YRD Make Money?
Net Profit Margin
For every $100 in sales, Yiren Digital Ltd. keeps $0.92 as profit after all expenses.
Operating Margin
Core operations generate 22.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.54 in profit for every $100 of shareholder equity.
ROA
Yiren Digital Ltd. generates $0.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Yiren Digital Ltd. produces operating cash flow of $1.76B, showing steady but balanced cash generation.
Free Cash Flow
Yiren Digital Ltd. generates strong free cash flow of $1.76B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $20.30 in free cash annually.
FCF Yield
YRD converts 91.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How YRD Stacks Against Its Sector Peers
| Metric | YRD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.22 | 18.66 | Better (Cheaper) |
| ROE | 0.54% | 806.00% | Weak |
| Net Margin | 0.92% | -451.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 662.02 | Weak Liquidity |
| ROA | 0.39% | -24409.00% (disorted) | Weak |
YRD outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Yiren Digital Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-27.97%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
46.38%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
455.29%
Industry Style: Value, Dividend, Cyclical
High Growth