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Finvolution Group (FINV)
:FINV
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FinVolution Group
(NYSE:FINV)
74Outperform
FinVolution Group (FINV) vs. S&P 500 (SPY)
Market Cap
$1.91B
Dividend Yield3.37%
Average Volume (3M)1.51M
Price to Earnings (P/E)5.9
Beta (1Y)0.53
Revenue Growth2.51%
EPS Growth7.06%
CountryUS
Employees3,648
SectorFinancial
Sector Strength76
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.26
Shares Outstanding140,073,870
10 Day Avg. Volume1,970,386
30 Day Avg. Volume1,509,412
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)N/A
Price to Sales (P/S)1.79
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.60Price Target Upside57.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 the facilitation of online consumer loans. The company operates a marketplace lending model where it connects borrowers with lenders, earning fees from both parties. Key revenue streams include transaction fees from successful loan origination and servicing fees for managing the loan lifecycle. Additionally, FinVolution Group benefits from strategic partnerships with financial institutions and technology companies, enhancing its service offerings and expanding its reach. The company's sophisticated risk management and data analytics capabilities contribute significantly to its ability to maintain a profitable and sustainable business model.
FinVolution Group Financial Statement Overview
Summary
FinVolution Group exhibits strong financial performance with robust revenue growth, high profitability margins, and a solid balance sheet with minimal leverage. The consistent free cash flow generation further supports the company's financial stability.Income Statement
FinVolution Group has demonstrated robust revenue growth over the years, with a notable increase from 2019 to 2024. The gross profit margin and net profit margin are strong, indicating efficient cost management and profitability. The EBIT and EBITDA margins have remained stable, contributing to the company's high profitability. The consistent revenue growth and high margins suggest a healthy income statement.85
Very Positive
Balance Sheet
The company's balance sheet reflects strong financial health characterized by low debt levels and a healthy equity base. The debt-to-equity ratio is extremely low, indicating minimal leverage risk. The return on equity is impressive, highlighting effective use of equity capital to generate profits. The equity ratio is solid, suggesting a stable financial foundation.80
Positive
Cash Flow
FinVolution Group's cash flow is positive, with substantial free cash flow generation. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion from earnings. The free cash flow growth rate shows improvement, although fluctuations in investing and financing cash flows suggest some volatility. Overall, the cash flow statement reflects a strong ability to generate cash.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.07B | 12.60B | 11.13B | 9.47B | 7.56B |
| Gross Profit | ||||
| 10.36B | 9.90B | 9.10B | 7.63B | 6.24B |
| EBIT | ||||
| 2.54B | 6.86B | 2.52B | 2.61B | 2.31B |
| EBITDA | ||||
| 7.14B | 6.88B | 2.52B | 2.61B | 2.40B |
| Net Income Common Stockholders | ||||
| 2.38B | 2.34B | 2.27B | 2.51B | 1.97B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.51B | 7.93B | 7.06B | 5.62B | 4.60B |
| Total Assets | ||||
| 23.61B | 21.29B | 21.38B | 18.14B | 14.88B |
| Total Debt | ||||
| 34.36M | 41.63M | 176.99M | 33.36M | 43.30M |
| Net Debt | ||||
| -4.64B | -4.93B | -3.46B | -4.38B | -2.59B |
| Total Liabilities | ||||
| 8.05B | 7.42B | 8.94B | 7.43B | 6.45B |
| Stockholders Equity | ||||
| 15.20B | 13.75B | 12.37B | 10.66B | 8.36B |
| Cash Flow | Free Cash Flow | |||
| 2.89B | 875.33M | 216.06M | 574.96M | 2.17B |
| Operating Cash Flow | ||||
| 2.89B | 1.41B | 268.83M | 630.23M | 2.21B |
| Investing Cash Flow | ||||
| -2.30B | 1.41B | -1.55B | 1.99B | 1.04B |
| Financing Cash Flow | ||||
| -622.72M | -2.56B | -795.86M | -239.80M | -3.09B |
FinVolution Group Technical Analysis
Negative
7.36
Price Trends
8.38
Negative
7.60
Negative
6.54
Positive
Market Momentum
-0.42
Positive
39.11
Neutral
15.82
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 7.36 is below the 20-day moving average (MA) of 8.38, below the 50-day MA of 8.38, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 15.82 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 0 New Risks
FinVolution Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $490.05M | 2.23 | 17.96% | 3.16% | 17.07% | -8.81% | |
80 Outperform | $4.81B | 6.16 | 27.18% | 3.27% | 3.88% | 56.29% | |
74 Outperform | $1.91B | 5.87 | 16.47% | 3.37% | 2.51% | 7.06% | |
73 Outperform | $1.11B | 7.46 | 10.77% | 1.74% | 10.06% | 0.04% | |
63 Neutral | $12.07B | 9.35 | 8.15% | 79.57% | 12.85% | -5.13% | |
54 Neutral | $495.48M | 37.48 | 0.80% | ― | -16.27% | -88.56% | |
52 Neutral | $2.43B | ― | -3.79% | 5.24% | -38.81% | -425.73% |
* Financial Sector Average
Performance Comparison
FINV
FinVolution Group
7.36
2.69
57.60%
YRD
Yiren Digital
5.98
1.14
23.55%
QD
Qudian
2.56
0.09
3.64%
LX
Lexinfintech Holdings
7.34
5.73
355.90%
QFIN
Qifu Technology
37.93
19.80
109.21%
LU
Lufax Holding
2.47
0.47
23.50%
FinVolution Group Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: -16.46% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several achievements, including record transaction volumes, strong international revenue growth, advancements in R&D and AI, and successful shareholder returns. However, challenges in Indonesia due to new interest rate regulations and losses in the Philippines market were noted. Despite these challenges, the overall sentiment is positive with strong growth prospects and strategic initiatives in place.Highlights
Record Transaction Volume and Loan Balance
FinVolution Group achieved a 5% growth in transaction volume in China and a 28% increase internationally, with total transaction volume and outstanding loan balance reaching new highs of RMB 206 billion and RMB 72 billion, respectively, a 6% year-over-year increase.
Strong International Revenue Growth
Revenue from international operations rose 19% year-over-year to RMB 2.5 billion, contributing nearly 20% to the total revenue for 2024.
R&D and AI Advancements
Invested RMB 500 million in R&D in 2024, leading to notable AI advancements that reduced advertising production costs by 60% and increased conversion rates by 9%.
ESG Initiatives and Accolades
Empowered 826,000 small business owners with loans totaling RMB 58 billion, and received top-tier ESG rankings from Morningstar and S&P.
Successful Shareholder Returns
Returned over USD 160 million to shareholders in 2024, representing a 49% payout of net income, and increased annual dividend by 17%.
Lowlights
Challenges in Indonesia Due to Interest Rate Regulation
Indonesia's interest rate reduction in January 2024 posed challenges, necessitating operational adjustments to comply with new interest rate caps.
Philippines Market Losses
The Philippines market operated at a loss in 2024, although it is expected to become profitable in 2025.
Company Guidance
During the FinVolution Group's earnings call for the fourth quarter and full year of 2024, the company reported several key metrics demonstrating its growth and resilience despite economic challenges. They achieved a 5% growth in transaction volume in China and a 28% growth in international markets. The total transaction volume and outstanding loan balance reached new highs of RMB 206 billion and RMB 72 billion, respectively, both marking a 6% year-over-year increase. The company added approximately 4 million new borrowers, bringing the total to around 34 million across China, Indonesia, and the Philippines. Total revenue for 2024 was RMB 30.1 billion, up 4% from the previous year, with international operations contributing RMB 2.5 billion, a 19% increase. The company improved its funding cost by over 200 basis points, and invested around RMB 500 million in R&D, resulting in significant advancements in AI, which contributed to a 9% increase in borrower conversion rates. Looking forward, FinVolution anticipates a 10% to 15% increase in total revenue for 2025 and aims to increase international revenue contribution to around 25%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.