Yiren Digital (YRD) AI Stock Analysis

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Yiren Digital

(NYSE:YRD)

Rating:73Outperform

Price Target:

$7.00

▲(14.94%Upside)

Yiren Digital's strong financial performance and attractive valuation are the most significant factors, supporting a positive outlook. Technical indicators are mixed, with recent price trends lacking clear direction. While earnings call insights show potential growth, challenges in insurance and increased provisions require attention.

Yiren Digital (YRD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$526.22M

Dividend Yield3.61%

Average Volume (3M)132.14K

Price to Earnings (P/E)2.9

Beta (1Y)0.51

Revenue Growth12.45%

EPS Growth-36.64%

CountryUS

Employees949

SectorFinancial

Sector Strength74

IndustryFinancial - Credit Services

Share Statistics

EPS (TTM)0.39

Shares Outstanding86,934,540

10 Day Avg. Volume217,088

30 Day Avg. Volume132,141

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)0.13

Price to Sales (P/S)0.00

P/FCF Ratio0.44

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Yiren Digital Business Overview & Revenue Model

Company DescriptionYiren Digital Ltd., through its subsidiaries, operates as an online consumer finance marketplace that connects borrowers and investors in the People's Republic of China. It provides loan facilitation services; and post-origination services, such as cash processing, collection, and SMS services. The company's loan products portfolio includes unsecured consumer loans; secured consumer loan, which include secured financial leasing, auto-secured, and property-secured loans; and small business loans. It also distributes short-term cash management, mutual fund investment, insurance, and securities and stock products. In addition, the company provides online investor education services, which include a range of investment and trading topics, and various types of training programs on wealth planning, market insights, and investment strategies; consultancy information technology support; referral; and IT, system maintenance, and customer support services. Further, it is involved in the provision of services for financing lease and insurance brokerage businesses. The company offers its products through www.yxpuhui.com, and a wealth management website and mobile application. As of December 31, 2020, it had 60 fixed income products, 810 mutual fund products, and 296 insurance products. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. is a subsidiary of Creditease Holdings (Cayman) Limited.

How the Company Makes MoneyYiren Digital makes money primarily through interest income, service fees, and investment returns generated from its financial services platform. The company derives revenue from the interest rate spread between the interest earned on loans and the interest paid to investors. Additionally, Yiren Digital charges service fees for facilitating loan origination and management, as well as for wealth management services provided through its investment platform. The company also benefits from strategic partnerships with financial institutions, which enhance its service offerings and expand its customer base, further driving revenue growth.

Yiren Digital Key Performance Indicators (KPIs)

Any

Volume of Loans Facilitated

Volume of Loans Facilitated
Indicates the total amount of loans processed, reflecting the company's lending capacity and market demand for its financial products.

Chart InsightsYiren Digital's loan volume has surged, reflecting strategic upgrades in customer segments and AI integration, leading to improved asset quality and operational efficiency. The recent earnings call highlighted a 49% year-over-year increase in loan volumes for 2024, with international business profitability and AI-driven cost savings as key contributors. Despite challenges in the insurance segment, the company's focus on high-quality borrowers and technological advancements positions it well for sustained growth, as evidenced by the doubling of loan volumes in the Philippines and a positive outlook for 2025.

Data provided by:

Main Street Data

Yiren Digital Earnings Call Summary

Earnings Call Date:Jun 12, 2025

(Q1-2025)

% Change Since: -18.03%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook. While there was substantial growth in loan volume and successful international expansion, the insurance and lifestyle segments faced significant declines. Additionally, increased provisions and decreased net income indicate financial challenges. However, the positive impacts of AI on operational efficiency and a strategic focus on international growth provide a balanced view.

Q1-2025 Updates

Positive Updates

Loan Volume Growth

Loan volume facilitated reached RMB 15.2 billion in Q1 2025, representing a 28% increase year-over-year.

International Expansion Success

Loan volume in the Philippines reached RMB 123.7 million, representing a 74% growth compared to Q4 2024, with new borrowers' loan facilitation up 108% quarter-over-quarter.

AI-Driven Operational Efficiency

AI customer service system handles over 30 million calls per month, boosting acquisition efficiency and cutting labor costs; AI collection robots saved approximately RMB 1.9 million monthly in labor costs.

Revenue Increase

Total revenue increased 13% year-over-year to RMB 1.6 billion in Q1 2025.

Repeat Borrowing Rate Increase

Repeat borrowing rate increased to 74% in Q1 2025 compared to 65% in Q4 2024.

Negative Updates

Insurance Business Decline

Total premiums reached RMB 801.8 million with revenue of RMB 71.5 million, reflecting a decline of 12% and 43% year-over-year respectively.

Consumption and Lifestyle Segment Decline

Revenue dropped 40% year-over-year to RMB 308 million due to strategic scaling back.

Increased Provisions for Contingent Liabilities

Provision for contingent liability increased sixfold year-over-year to RMB 411 million.

Net Income Decrease

Net income for the quarter was RMB 248 million, a decrease of 49% year-over-year.

Company Guidance

During the first quarter of 2025, Yiren Digital reported a solid performance with a total loan volume facilitated of RMB 15.2 billion, representing a 28% increase year-over-year despite a slight decline of less than 1% quarter-over-quarter. The company projects double-digit growth in loan volume for the second quarter, driven by a significant increase in repeat borrowing rate to 74% and the addition of three new partnerships. AI-driven initiatives have significantly enhanced operations, with the AI customer service system handling over 30 million calls per month and achieving a 96% 22nd core pickup rate, up from 85% in the prior quarter. In terms of asset quality, delinquency rates remained stable at historical lows, with loans 1 to 30 days past due at 1.6%. The company's international expansion is progressing well, with loan volume in the Philippines reaching RMB 123.7 million, marking a 74% growth from Q4 2024, and preparations for expansion into Indonesia expected to launch in the second half of 2025. However, the insurance brokerage business faced challenges, with a 12% decline in total premiums to RMB 801.8 million and a 43% drop in revenue year-over-year. Overall, Yiren Digital's total revenue for the first quarter increased by 13% year-over-year to RMB 1.6 billion, despite a 49% year-over-year decline in net income to RMB 248 million due to increased provisions for contingent liabilities and higher R&D expenses.

Yiren Digital Financial Statement Overview

Summary

Yiren Digital's financial performance is strong, with impressive income statement metrics such as a high gross profit margin of 84.8% and a solid net profit margin of 27.2%. The balance sheet is stable with low leverage, although rising liabilities and declining cash reserves pose potential risks. Cash flow generation is robust but declining free cash flow trends require attention.

Income Statement

Positive

Yiren Digital shows a robust income statement with a significant improvement in revenue and profitability. The Gross Profit Margin stands at an impressive 84.8%, indicating efficient cost management. The Net Profit Margin is also strong at 27.2%, reflecting solid profitability. Revenue growth of 18.6% from the previous year highlights a positive upward trajectory. However, slight declines in EBIT and EBITDA margins from 2023 to 2024 suggest some pressure on operational efficiency.

Balance Sheet

Positive

The balance sheet is solid, with a low Debt-to-Equity Ratio of 0.004, demonstrating minimal leverage and financial risk. The Return on Equity is a healthy 16.6%, indicating good utilization of shareholder funds. The high Equity Ratio of 73.5% shows strong financial stability. However, the declining cash reserves and increasing liabilities compared to the previous year could pose potential risks if the trend continues.

Cash Flow

Positive

Cash flow analysis reveals strong operational cash generation with an Operating Cash Flow to Net Income Ratio of 0.9, indicating a healthy conversion of income to cash. However, a negative Free Cash Flow growth rate of -34.7% from the previous year and negative investing cash flow indicate challenges in maintaining cash reserves while investing in growth. This suggests a need for cautious cash management moving forward.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.63B	5.81B	4.90B	3.43B	4.48B	3.96B
	Gross Profit
4.76B	4.92B	3.92B	2.66B	3.72B	2.86B
	EBIT
2.32B	1.65B	2.59B	1.47B	1.15B	278.38M
	EBITDA
2.32B	1.68B	2.60B	1.50B	1.33B	277.46M
	Net Income Common Stockholders
1.82B	1.58B	2.08B	1.19B	1.03B	-692.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.09B	4.27B	6.20B	5.24B	3.04B	2.65B
	Total Assets
12.46B	12.98B	10.28B	8.54B	7.74B	6.70B
	Total Debt
15.23M	40.77M	23.65M	803.13M	1.10B	81.85M
	Net Debt
-3.69B	-3.80B	-5.77B	-3.47B	-1.76B	-2.39B
	Total Liabilities
3.17B	3.44B	2.19B	2.51B	2.92B	2.92B
	Stockholders Equity
9.28B	9.54B	8.09B	6.03B	4.82B	3.78B
Cash Flow		Free Cash Flow
1.00B	1.41B	2.17B	1.85B	148.79M	268.31M
	Operating Cash Flow
1.00B	1.42B	2.17B	1.85B	158.19M	282.03M
	Investing Cash Flow
-1.22B	-3.11B	100.05M	52.56M	-346.51M	-1.80B
	Financing Cash Flow
-140.66M	-277.23M	-569.28M	-489.12M	427.45M	955.45M

Yiren Digital Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.09

Price Trends

50DMA

6.25

Negative

100DMA

6.38

Negative

200DMA

5.74

Positive

Market Momentum

MACD

<0.01

Positive

RSI

42.95

Neutral

STOCH

5.09

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YRD, the sentiment is Negative. The current price of 6.09 is below the 20-day moving average (MA) of 6.56, below the 50-day MA of 6.25, and above the 200-day MA of 5.74, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 5.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YRD.

Yiren Digital Risk Analysis

Yiren Digital disclosed 99 risk factors in its most recent earnings report. Yiren Digital 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

Yiren Digital Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	80 Outperform	$2.35B	6.75	17.91%	2.91%	4.99%	25.93%
XYF	80 Outperform	$723.63M	3.62	24.00%	1.96%	20.28%	27.31%
YRD	73 Outperform	$526.22M	2.86	14.69%	3.61%	12.45%	-36.64%
LX	73 Outperform	$1.19B	6.67	12.60%	3.12%	7.53%	37.86%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
QD	64 Neutral	$478.87M	12.16	2.77%	―	0.54%	―
UPST	63 Neutral	$5.62B	―	-10.30%	―	34.69%	63.65%

* Financial Sector Average

Performance Comparison

YRD

Yiren Digital

6.09

1.47

31.82%

Qudian

2.90

1.03

55.08%

FINV

FinVolution Group

9.51

4.87

104.96%

Lexinfintech Holdings

7.06

5.42

330.49%

XYF

X Financial

17.32

13.17

317.35%

UPST

Upstart Holdings

59.08

37.44

173.01%

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.