CNFinance Holdings (CNF) AI Stock Analysis

• Market Cap: $33.88M
• Dividend Yield: N/A
• Average Volume (3M): 102.24K
• Price to Earnings (P/E): 1.9
• Beta (1Y): 1.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 691
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -0.04
• Shares Outstanding: 6,858,216
• 10 Day Avg. Volume: 36,691
• 30 Day Avg. Volume: 102,238
• PEG Ratio: -0.06
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 0.32
• Enterprise Value/Market Cap: 19.87
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.00
• Price Target Upside: 321.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $5.00 ▲(5.49% Upside)

CNFinance Holdings' overall stock score is driven by strong revenue growth and cash flow efficiency, but tempered by challenges in profitability and high leverage. Technical analysis shows short-term bullish momentum, while valuation is hindered by a lack of data. The earnings call reflects strategic efforts but also highlights significant operational challenges.

CNFinance Holdings Business Overview & Revenue Model

Company Description

CNFinance Holdings Limited is a financial services company based in China, primarily engaged in providing personal credit products and services to individual borrowers. The company operates within the consumer finance sector, leveraging technology to enhance the efficiency of its loan origination and risk management processes. CNFinance's core offerings include personal loans, credit lines, and other financial products aimed at meeting the diverse needs of consumers in the rapidly growing Chinese market.

How the Company Makes Money

CNFinance generates revenue primarily through the interest income earned on loans issued to borrowers. The company originates loans, often through an online platform, and charges interest on these loans, which is a significant source of its income. Additionally, CNFinance may earn fees related to loan origination, servicing, and late payment penalties. The company has established partnerships with various financial institutions and technology firms that help to enhance its loan underwriting and risk assessment capabilities, thereby improving its profitability. Moreover, the company's focus on expanding its customer base and increasing the volume of loans disbursed contributes significantly to its overall earnings.

CNFinance Holdings Financial Statement Overview

Summary

CNFinance Holdings shows strong revenue growth and cash flow efficiency, but faces challenges with profitability and high leverage. The income statement reveals significant revenue growth but low net profit margins. The balance sheet indicates high leverage with a high debt-to-equity ratio, while the cash flow statement shows efficient cash generation but limited growth due to past negative free cash flow.

Income Statement

The income statement shows a mixed performance with a significant revenue growth rate of 83.72% in the most recent year, indicating strong top-line growth. However, the net profit margin is relatively low at 2.36%, suggesting challenges in converting revenue into profit. The gross profit margin is healthy at 39.07%, but the EBIT and EBITDA margins are modest at 3.02% and 3.74%, respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.47, which indicates significant leverage and potential financial risk. The return on equity is low at 0.93%, suggesting limited profitability relative to shareholder investment. The equity ratio stands at 27.00%, showing a moderate level of equity financing compared to total assets.

Cash Flow

The cash flow statement reveals a strong free cash flow to net income ratio of 98.95%, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is 10.70%, reflecting solid cash flow from operations. However, the free cash flow growth rate is not calculable due to a previous period's negative free cash flow, which limits the assessment of cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	359.92M	1.60B	1.84B	1.84B	887.13M	1.02B
Gross Profit	359.92M	625.25M	995.45M	695.71M	900.76M	1.02B
EBITDA	0.00	59.83M	207.39M	174.83M	97.59M	0.00
Net Income	-50.53M	37.78M	164.62M	135.35M	65.21M	114.85M
Balance Sheet
Total Assets	12.52B	15.03B	16.36B	14.48B	14.41B	12.20B
Cash, Cash Equivalents and Short-Term Investments	922.27M	1.79B	2.70B	16.40T	3.48B	2.49B
Total Debt	5.31B	5.95B	8.27B	7.76B	8.06B	5.67B
Total Liabilities	8.49B	10.97B	12.36B	10.54B	10.57B	8.49B
Stockholders Equity	4.03B	4.06B	4.01B	3.89B	3.82B	3.74B
Cash Flow
Free Cash Flow	0.00	749.28M	1.59B	829.36M	685.89M	1.12B
Operating Cash Flow	0.00	757.23M	1.71B	919.25M	689.69M	1.12B
Investing Cash Flow	0.00	-263.67M	-2.48B	-1.10B	-2.35B	524.05M
Financing Cash Flow	0.00	-1.33B	1.01B	-288.16M	1.93B	-1.37B

CNFinance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNF, the sentiment is Positive. The current price of 4.74 is above the 20-day moving average (MA) of 4.19, above the 50-day MA of 4.29, and below the 200-day MA of 7.26, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 70.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNF.

CNFinance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNFCA	68 Neutral	$208.83M	9.19	6.65%	―	5.49%	4.30%
VEL	68 Neutral	$695.74M	8.28	15.02%	―	35.12%	25.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IOR	64 Neutral	$74.74M	17.41	3.52%	―	―	-32.51%
GHI	55 Neutral	$226.39M	23.61	0.35%	14.27%	-7.67%	-106.54%
CNF	53 Neutral	$33.88M	1.87	4.11%	―	―	―
PAPL	51 Neutral	$6.72M	―	-244.51%	―	16.06%	4.26%

CNFinance Holdings Corporate Events

CNFinance Regains NYSE Compliance with Share Price Adjustment

On October 14, 2025, CNFinance Holdings Limited announced that it has regained compliance with the New York Stock Exchange’s continued listing standard for minimum share price. Previously, the company was notified on April 7, 2025, that it was not in compliance due to its stock price falling below $1.00. To address this, CNFinance adjusted the ratio of its American depositary shares to Class A ordinary shares, which became effective on September 5, 2025. By October 1, 2025, the company’s stock price met the NYSE’s minimum requirement, allowing it to continue trading on the exchange.

CNFinance Reports First Half 2025 Financial Results Amid Strategic Shift

CNFinance Holdings announced its unaudited financial results for the first half of 2025, reflecting a strategic reduction in new loan issuance due to challenging economic and real estate market conditions. This strategy resulted in a significant decrease in loan origination volume and interest income, leading to a net loss of RMB40.4 million. Despite the decline, the company has focused on managing existing portfolio quality, reducing interest costs, and operational expenses. Additionally, CNFinance has introduced new market-driven products and established partnerships with supply chain finance firms to sustain shareholder value. The company’s delinquency and non-performing loan ratios increased as a result of disposing non-performing loans.

CNFinance Announces ADS Ratio Change Effective September 2025

On August 15, 2025, CNFinance Holdings Limited announced a plan to change the ratio of its American depositary shares (ADSs) to its Class A ordinary shares from one ADS to twenty Class A shares to one ADS to two hundred Class A shares. This change, effective around September 5, 2025, will function like a one-for-ten reverse ADS split. The change aims to increase the ADS trading price proportionally, although there is no guarantee of the price reaching ten times the previous value. The ADSs will continue to trade on the NYSE under the ticker ‘CNF’, and the underlying Class A ordinary shares will remain unaffected.