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X Financial
(NYSE:XYF)
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Rating:76Outperform
Price Target:
$6.00
â–²(11.11% Upside)
Action:Reiterated
Date:08/24/26
The score is driven primarily by strong financial positioning (low leverage and solid cash conversion) and very attractive headline valuation (ultra-low P/E and high dividend yield). These positives are tempered by a cautious earnings outlook with major year-over-year business contraction and limited guidance visibility, plus only moderately supportive technicals given the stock remains just below its 200-day moving average.
Positive Factors
Conservative Balance Sheet
Very low leverage and a high equity share provide financial flexibility and downside protection while supporting continued lending through stress. This capitalization also gives management room to prioritize credit quality without depending heavily on external funding.
Negative Factors
Severe Lending Scale Contraction
The sharp reduction in originations, outstanding balances and active borrowers materially shrinks the fee-generating portfolio. Even if credit quality improves, rebuilding scale may take time and could constrain revenue, operating leverage and partner relevance.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and a high equity share provide financial flexibility and downside protection while supporting continued lending through stress. This capitalization also gives management room to prioritize credit quality without depending heavily on external funding.
Read all positive factors
X Financial (XYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$205.59M
Dividend Yield9.27%
Average Volume (3M)55.25K
Price to Earnings (P/E)0.4
Beta (1Y)0.81
Revenue Growth-23.31%
EPS Growth-63.32%
CountryUS
Employees643
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)150.06
Shares Outstanding22,249,506
10 Day Avg. Volume43,901
30 Day Avg. Volume55,248
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.03
Price to Sales (P/S)0.04
P/FCF Ratio0.18
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
X Financial Business Overview & Revenue Model
Company Description
Operating in the People's Republic of China, X Financial delivers personal financial solutions, primarily functioning as an online platform that connects individuals seeking funds with potential investors. The company's diverse lending portfolio e...
How the Company Makes Money
X Financial generates revenue primarily by facilitating consumer loans and earning fees tied to loan transactions and ongoing loan performance. Its key revenue streams include: (1) service fees from loan facilitation activities (e.g., borrower acq...
X Financial Earnings Call Summary
Earnings Call Date:Aug 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but stabilizing picture. Operationally management has executed a deliberate de‑risking strategy that produced sequential improvements in margins, provisions and adjusted earnings, a rising average loan size, improved capitalization and ongoing shareholder returns (buybacks and a dividend). However, the business still faces substantial year‑over‑year deterioration: origination volumes, revenue and outstanding loans have contracted sharply, delinquencies remain elevated relative to last year, and a one‑off funding counterparty issue required a sizable provision. Given meaningful sequential progress but significant remaining headwinds and large YoY declines, the tone is cautious and transitional rather than decisively positive.Positive Updates
Disciplined Capital and Origination Strategy
Management prioritized credit quality, liquidity and balance sheet strength over near-term origination volume, concentrating origination in internally operated channels and tightening underwriting and automation across servicing and collections.
Negative Updates
Steep Decline in Origination Volumes
Facilitated and originated RMB 11.63 billion in loans, down 70.2% year-over-year and 20.5% sequentially, reflecting deliberate reduction in origination activity and a materially lower revenue base.
Read all updates
Q2-2026 Updates
Positive
Negative
Disciplined Capital and Origination Strategy
Management prioritized credit quality, liquidity and balance sheet strength over near-term origination volume, concentrating origination in internally operated channels and tightening underwriting and automation across servicing and collections.
Read all positive updates
Company Guidance
The company said it will not provide quantitative guidance for Q3 given material uncertainties, reiterating priorities of capital preservation, disciplined origination, rigorous cost control and protecting the balance sheet and saying it will resume guidance when visibility improves; key metrics cited to support that stance include a Q2 origination run-rate of RMB 11.63 billion (down 70.2% YoY, -20.5% QoQ), outstanding loan balance RMB 24.97 billion (-61.5% YoY, -29.2% QoQ), ~720,258 active borrowers (-74.8% YoY, -24.7% QoQ) and ~0.91 million loans facilitated in the quarter; Q2 financials included total net revenue RMB 993.6 million (-56.3% YoY, -15.5% QoQ), operating costs RMB 798.6 million (-50% YoY, -22.9% QoQ), aggregate credit provisions RMB 183.1 million (-36.4% YoY, -35.3% QoQ), net income RMB 47 million (up 23.8% QoQ, vs RMB 528 million a year ago), operating margin 19.6% (vs 12% in Q1), net profit margin 4.7% and ROE 2.4%; balance sheet and capital-return metrics highlighted were total assets ~RMB 12.1 billion, shareholders’ equity ~RMB 7.8 billion (equity-to-asset ~64%, up from ~57% in Q1), total cash including restricted ~RMB 2 billion, repurchases of ~2.63 million ADSs for ~$12.49 million YTD with ~$35.5 million remaining under a $100 million program through Nov 30, 2026, and a Board-approved cash dividend of $0.28 per ADS (record date Sep 10, pay ~Sep 28).X Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.85B | 7.43B | 5.87B | 3.28B | 2.32B | 1.51B |
| Gross Profit | 4.73B | 5.47B | 3.91B | 1.60B | 1.32B | 1.37B |
| EBITDA | 2.05B | 1.72B | 3.71B | 1.47B | 1.23B | 1.20B |
| Net Income | 1.04B | 1.42B | 1.54B | 1.19B | 812.00M | 825.41M |
Balance Sheet | ||||||
| Total Assets | 13.56B | 14.67B | 11.82B | 11.65B | 8.84B | 7.34B |
| Cash, Cash Equivalents and Short-Term Investments | 3.77B | 987.63M | 2.94B | 2.90B | 2.37B | 2.17B |
| Total Debt | 352.55M | 1.17B | 341.23M | 577.85M | 81.51M | 178.83M |
| Total Liabilities | 5.82B | 6.83B | 4.87B | 5.80B | 4.08B | 3.37B |
| Stockholders Equity | 7.74B | 7.84B | 6.95B | 5.85B | 4.75B | 3.98B |
Cash Flow | ||||||
| Free Cash Flow | 1.45B | 1.45B | 1.51B | 805.67M | 316.65M | 446.55M |
| Operating Cash Flow | 1.47B | 1.47B | 1.52B | 814.14M | 322.70M | 449.17M |
| Investing Cash Flow | -1.07B | -1.07B | 122.03M | -1.11B | -913.39M | -2.35B |
| Financing Cash Flow | 79.24M | 79.24M | -1.94B | 1.23B | 576.35M | 1.30B |
X Financial Risk Analysis
X Financial disclosed 84 risk factors in its most recent earnings report. X Financial 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 0 New Risks
X Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $205.59M | 0.43 | 7.19% | 11.69% | -23.31% | -63.32% | |
70 Outperform | $1.02B | 3.07 | 5.33% | 6.44% | 0.84% | -12.02% | |
70 Outperform | $198.55M | 0.91 | 12.18% | 25.81% | -3.40% | 8.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $1.37B | 1.29 | 15.27% | 11.36% | -7.92% | -41.54% | |
54 Neutral | $91.71M | -0.31 | -7.18% | 37.29% | -13.83% | -154.13% | |
54 Neutral | $119.83M | 0.81 | 21.99% | 31.60% | -13.48% | -27.51% |
* Financial Sector Average
XYF
X Financial
5.40
-8.68
-61.65%
YRD
Yiren Digital
1.08
-4.55
-80.80%
FINV
FinVolution Group
4.02
-3.77
-48.40%
LX
Lexinfintech Holdings
1.16
-4.75
-80.45%
QFIN
Qifu Technology
9.17
-17.61
-65.76%
JFIN
Jiayin Group
2.17
-10.41
-82.75%
X Financial Corporate Events
X Financial Q2 2026 Results Reveal Sharp Loan Contraction Amid Credit Tightening
Aug 24, 2026
X Financial reported unaudited results for the second quarter ended June 30, 2026, showing a sharp contraction in lending activity and active borrowers as it pursued a more conservative origination strategy. Total loan amount facilitated fell 70.2...
X Financial Names President Kan Li as Acting Chief Risk Officer After Jiang Resignation
Jun 17, 2026
On June 17, 2026, X Financial announced that Chief Risk Officer Yufan Jiang has resigned for personal reasons, effective July 1, 2026, with the company emphasizing that his departure is not related to any disagreement over its operations, policies...
X Financial Profit Slumps as Loan Volumes Plunge on Tighter Credit in Q1 2026
May 27, 2026
On May 27, 2026, X Financial reported unaudited results for the quarter ended March 31, 2026, showing a sharp contraction in lending volumes and borrower activity as it tightened credit standards. Total loan amount facilitated fell 58.4% year over...
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.