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FinVolution Group (FINV)
NYSE:FINV
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FinVolution Group
(NYSE:FINV)
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Rating:79Outperform
Price Target:
$10.00
▲(33.33% Upside)
FinVolution Group's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's international growth and strategic initiatives in AI bolster its prospects. However, technical indicators suggest caution, and regulatory uncertainties in China pose potential risks.
Positive Factors
International Expansion
The significant growth in international transaction volume highlights FinVolution's successful expansion strategy, diversifying revenue sources and reducing dependency on the domestic market.
AI-Powered Risk Management
FinVolution's advanced AI risk management enhances its ability to minimize fraud, ensuring robust loan portfolio quality and operational efficiency, which are crucial for long-term sustainability.
Strong Cash Flow Management
Effective cash flow management supports FinVolution's capacity to finance growth initiatives and return capital to shareholders, underpinning financial stability and strategic flexibility.
Negative Factors
Regulatory Uncertainty in China
Evolving regulations in China could impact FinVolution's loan structures and transaction volumes, posing a risk to its domestic operations and necessitating strategic adjustments.
Potential Impact of New Regulations
New regulatory measures could require FinVolution to alter its business model, affecting operational efficiency and potentially increasing compliance costs.
Increase in Delinquency Rate
An increase in delinquency rates may signal rising credit risk, which could affect profitability and necessitate tighter credit controls, impacting growth prospects.
FinVolution Group (FINV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.90B
Dividend Yield3.69%
Average Volume (3M)2.02M
Price to Earnings (P/E)5.0
Beta (1Y)0.62
Revenue Growth8.41%
EPS Growth34.76%
CountryUS
Employees3,623
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.39
Shares Outstanding140,073,870
10 Day Avg. Volume1,335,722
30 Day Avg. Volume2,019,919
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)0.86
Price to Sales (P/S)1.00
P/FCF Ratio4.55
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.12
Enterprise Value/Ebitda0.33
Forecast
1Y Price Target
$10.00Price Target Upside33.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
FinVolution Group Business Overview & Revenue Model
Company DescriptionFinVolution Group operates fintech platform that connects underserved individual borrowers with financial institutions in China. It operates in online consumer finance industry. The company's platform empowered by proprietary technologies, features automated loan transaction process, which enables a user experience. As of March 31, 2022, it had approximately 145.3 million cumulative registered users. The company was formerly known as PPDAI Group Inc. and changed its name to FinVolution Group in November 2019. FinVolution Group was founded in 2007 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyFinVolution Group generates revenue primarily through interest income on loans issued to consumers, as well as fees charged for services provided on its platform. The company earns money from the origination of loans, which includes processing fees and service fees from both borrowers and investors. Additionally, it may generate revenue from partnerships with financial institutions and other third-party service providers, which can include referral fees or revenue-sharing agreements. The company's ability to efficiently assess credit risk and manage loan portfolios also contributes to its profitability, allowing it to maintain a sustainable revenue model.
FinVolution Group Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in international markets and solid financial performance, including record net income and strategic use of AI for risk management. However, there are concerns regarding regulatory changes in China and potential impacts on loan structures and transaction volumes.Q2-2025 Updates
Positive Updates
International Business Growth
Net revenue reached RMB 3.6 billion, up 13% year-over-year, driven by a 10% increase in transaction volume in China and a 39% surge in international transaction volume.
Record Net Income
Net income reached RMB 751 million, representing an increase of 36% year-over-year and 2% quarter-over-quarter.
International Transaction Volume Increase
International transaction volume increased 39% year-over-year to RMB 3.2 billion, and loan balance rose 50% to RMB 2.1 billion.
New Borrower Growth
Onboarded 1.6 million new borrowers during the second quarter, a 96% year-over-year increase. New borrower growth from international markets outpaced China for the fifth consecutive quarter.
AI-Powered Risk Management
Achieved 98.8% detection accuracy against AI fraud and 95% detection of digital artifacts in forged images.
Convertible Bonds Offering
Completed a USD 150 million convertible bonds offering in June to support strategic priorities including international expansion.
Philippines Market Success
Loan volume in the Philippines more than doubled year-over-year to RMB 1.4 billion, driven by partnerships such as with TikTok Shop.
Negative Updates
Regulatory Uncertainty in China
Regulation in China's consumer finance sector is evolving, potentially impacting the loan mix and risk profile.
Slight Increase in Delinquency Rate
Day-1 delinquency rate rose 10 basis points quarter-over-quarter to 4.7%.
Potential Impact of New Regulations
New regulations on Internet loan facilitation in China might impact transaction volumes and require adjustments in loan structure.
Company Guidance
During the FinVolution Group's Second Quarter 2025 Earnings Conference Call, the company provided comprehensive guidance on its financial performance and strategic direction. CEO Tiezheng Li highlighted a 13% year-over-year increase in net revenue, reaching RMB 3.6 billion, bolstered by a 10% rise in transaction volume in China and a 39% surge internationally. Net income grew to RMB 751 million, marking a 36% year-over-year increase. The company has seen a 50% rise in international loan balance to RMB 2.1 billion and a 96% year-over-year increase in new borrower onboarding, with international operations contributing 22% of net revenue. The CFO, Jiayuan Xu, reiterated full-year revenue guidance of RMB 14.4 to 15 billion, reflecting 10% to 15% growth. The company is leveraging AI for risk management, achieving a 98.8% accuracy in fraud detection, and has secured a $150 million convertible bond to support international expansion. The firm remains committed to returning capital to shareholders, having repurchased $63.8 million in shares in the first half of 2025 and maintaining an enhanced dividend payout ratio of 20% to 30% of net profit.FinVolution Group Financial Statement Overview
Summary
FinVolution Group exhibits impressive financial health with strong profitability, sound financial structure, and efficient cash flow management. The company shows robust revenue and profit margins, though there is room for improvement in asset utilization and revenue growth acceleration.Income Statement
FinVolution Group demonstrates strong income statement metrics with a consistent revenue growth trajectory. The TTM (Trailing-Twelve-Months) gross profit margin is robust at 81.1%, and the net profit margin stands at 19.4%. The EBIT margin is 20.8%, indicating operational efficiency, while the EBITDA margin is notable at 28.9%. Year-over-year revenue growth from 2024 to 2025 is 2.4%, signaling steady business expansion.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity foundation with an equity ratio of 63.3%, indicating financial stability. The debt-to-equity ratio is minimal at 0.38, showing conservative financial leverage. Return on equity is strong at 16.8%, highlighting effective management of shareholders' investments. However, total assets growth is moderate, suggesting room for improvement in asset utilization.78
Positive
Cash Flow
FinVolution Group's cash flow management is commendable, with a free cash flow growth rate of 17.4% from 2024 to 2025. The operating cash flow to net income ratio is healthy at 1.29, indicating effective cash generation from operations. The free cash flow to net income ratio is robust at 1.29, reflecting strong liquidity and capacity to finance growth.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.79B | 13.07B | 12.60B | 11.28B | 9.54B | 7.56B |
| Gross Profit | 11.17B | 10.36B | 9.90B | 9.10B | 7.63B | 6.24B |
| EBITDA | 4.18B | 7.14B | 6.88B | 5.88B | 4.69B | 2.40B |
| Net Income | 2.80B | 2.38B | 2.34B | 2.27B | 2.51B | 1.97B |
Balance Sheet | ||||||
| Total Assets | 25.65B | 23.61B | 21.29B | 21.38B | 18.14B | 14.88B |
| Cash, Cash Equivalents and Short-Term Investments | 7.89B | 7.51B | 7.93B | 7.06B | 5.62B | 4.60B |
| Total Debt | 1.14B | 34.36M | 41.63M | 176.99M | 33.36M | 43.30M |
| Total Liabilities | 9.50B | 8.05B | 7.42B | 8.94B | 7.43B | 6.45B |
| Stockholders Equity | 15.80B | 15.20B | 13.75B | 12.37B | 10.66B | 8.36B |
Cash Flow | ||||||
| Free Cash Flow | 2.41B | 2.87B | 875.33M | 216.06M | 574.96M | 2.17B |
| Operating Cash Flow | 2.26B | 2.89B | 1.41B | 268.83M | 630.23M | 2.21B |
| Investing Cash Flow | -3.30B | -2.30B | 1.41B | -1.55B | 1.99B | 1.04B |
| Financing Cash Flow | 607.90M | -622.72M | -2.56B | -795.86M | -239.80M | -3.09B |
FinVolution Group Technical Analysis
Negative
7.50
Price Trends
8.36
Negative
8.79
Negative
8.28
Negative
Market Momentum
-0.27
Negative
38.37
Neutral
18.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINV, the sentiment is Negative. The current price of 7.5 is below the 20-day moving average (MA) of 7.68, below the 50-day MA of 8.36, and below the 200-day MA of 8.28, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 18.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FINV.
FinVolution Group Risk Analysis
FinVolution Group disclosed 91 risk factors in its most recent earnings report. FinVolution Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We bear credit risks for a substantial majority of the loans funded by institutional funding partners to borrowers we introduced. If we fail to effectively manage credit risk of our loans and our overdue loans increase, our business, financial condition and results of operations may be materially adversely affected. Q4, 2023
2.
We face indirect technology, cybersecurity and operational risks relating to third parties. Q4, 2023
3.
We face uncertainties with respect to the implementation of the Foreign Investment Law of the PRC and how it may impact the viability of our current corporate structure, corporate governance and business operations. Q4, 2023
FinVolution Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.90B | 4.99 | 18.75% | 3.69% | 8.41% | 34.76% | |
76 Outperform | $546.95M | 2.89 | 16.58% | 6.95% | 12.69% | -35.36% | |
73 Outperform | $920.40M | 4.21 | 10.25% | 5.56% | 3.11% | 95.40% | |
70 Outperform | $724.91M | 10.37 | 0.81% | ― | -39.25% | ― | |
52 Neutral | $2.43B | -5.77 | ― | ― | ― | ― | |
45 Neutral | $927.13M | -3.55 | ― | ― | 510.69% | -145.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FINV
FinVolution Group
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13.81%
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FinVolution Group Corporate Events
FinVolution Group Reports Strong Q2 2025 Financial Results
Aug 21, 2025
FinVolution Group reported its unaudited financial results for the second quarter of 2025, showing significant growth in transaction volumes and revenues. The company achieved a 9.4% year-over-year increase in transaction volume, reaching RMB106.1 billion, and a 37.8% increase in international transaction volume. Revenue for the first half of 2025 increased by 11.5% to RMB7,059.0 million, with international revenues rising by 30.2%. These results highlight FinVolution’s strong market position and expanding international presence, with implications for continued growth and stakeholder confidence.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.