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FinVolution Group (FINV)
NYSE:FINV
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FinVolution Group
(NYSE:FINV)
83Outperform
FinVolution Group (FINV) vs. S&P 500 (SPY)
Market Cap
$2.15B
Dividend Yield2.94%
Average Volume (3M)905.22K
Price to Earnings (P/E)6.9
Beta (1Y)0.71
Revenue Growth1.54%
EPS Growth-1.77%
CountryUS
Employees3,648
SectorFinancial
Sector Strength77
IndustryCredit Finance
Share Statistics
EPS (TTM)1.16
Shares Outstanding146,005,050
10 Day Avg. Volume727,573
30 Day Avg. Volume905,217
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.44
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
$7.20Price Target Upside-12.83% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
FinVolution Group Business Overview & Revenue Model
Company DescriptionFinVolution Group (FINV) is a leading financial technology platform in China, facilitating digital lending services to individuals and small businesses. The company leverages advanced technologies such as artificial intelligence and big data analytics to offer innovative credit solutions and risk management services. FinVolution Group primarily operates in the online consumer finance sector, providing a seamless and efficient lending experience for both borrowers and investors through its comprehensive digital platform.
How the Company Makes MoneyFinVolution Group generates revenue primarily through its digital lending platform, where it connects borrowers with investors. The company's revenue streams include fees from borrowers for loan origination and servicing, as well as interest income on loans facilitated through its platform. Additionally, FinVolution may charge investors for services related to investment management and risk assessment. The company has significant partnerships with financial institutions and technology companies, enhancing its platform's capabilities and expanding its user base. These partnerships, along with its strong technological infrastructure, contribute significantly to its revenue generation and market position.
FinVolution Group Financial Statement Overview
Summary
FinVolution Group demonstrates strong profitability with robust margins and solid revenue growth. The balance sheet is strong, with low leverage and a high equity ratio, indicating financial stability. Cash flow management is effective, although there are some fluctuations that suggest potential volatility.Income Statement
FinVolution Group demonstrates strong profitability with a gross profit margin of 81.90% and a net profit margin of 17.29% in TTM (Trailing-Twelve-Months). The revenue growth rate of 2.27% from the previous year indicates moderate growth. The EBIT margin is robust at 27.39%, although EBITDA margin calculation is inconsistent due to data anomalies. Overall, the income statement reflects a healthy operational efficiency and profitability, though growth is modest.85
Very Positive
Balance Sheet
The balance sheet of FinVolution Group is strong, with a low debt-to-equity ratio of 0.002 and a high equity ratio of 63.78% in TTM (Trailing-Twelve-Months). The return on equity (ROE) is a solid 15.33%, indicating efficient use of equity. The company shows strong financial stability and low leverage risk, which is favorable for long-term sustainability.88
Very Positive
Cash Flow
Operating cash flow is healthy, with a significant growth turning from negative in 2019 to positive in TTM (Trailing-Twelve-Months). The free cash flow to net income ratio is strong, indicating good cash conversion. The operating cash flow to net income ratio of 1.85 demonstrates effective cash management. However, fluctuations in free cash flow growth rate, from 2019 to 2024, indicate potential volatility in cash flow generation.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 12.89B | 12.60B | 11.13B | 9.47B | 7.56B | 5.96B | Gross Profit |
| 10.55B | 9.90B | 9.10B | 7.63B | 6.24B | 4.75B | EBIT |
| 3.53B | 6.86B | 2.52B | 2.61B | 2.31B | 2.56B | EBITDA |
| 2.26B | 6.88B | 2.52B | 2.61B | 2.40B | 2.67B | Net Income Common Stockholders |
| 2.23B | 2.34B | 2.27B | 2.51B | 1.97B | 2.37B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.31B | 7.93B | 7.06B | 5.62B | 4.60B | 2.44B | Total Assets |
| 13.14B | 21.29B | 21.38B | 18.14B | 14.88B | 18.30B | Total Debt |
| 25.00M | 41.63M | 176.99M | 33.36M | 43.30M | 320.14M | Net Debt |
| -1.59B | -4.93B | -3.46B | -4.38B | -2.59B | -2.00B | Total Liabilities |
| 7.16B | 7.42B | 8.94B | 7.43B | 6.45B | 10.29B | Stockholders Equity |
| 5.92B | 13.75B | 12.37B | 10.66B | 8.36B | 7.95B |
| Cash Flow | Free Cash Flow | ||||
| 3.59B | 875.33M | 216.06M | 574.96M | 2.17B | -264.18M | Operating Cash Flow |
| 4.13B | 1.41B | 268.83M | 630.23M | 2.21B | -215.52M | Investing Cash Flow |
| -215.25M | 1.41B | -1.55B | 1.99B | 1.04B | -828.22M | Financing Cash Flow |
| -3.57B | -2.56B | -795.86M | -239.80M | -3.09B | 1.75B |
FinVolution Group Technical Analysis
Positive
8.26
Price Trends
7.69
Positive
7.03
Positive
6.16
Positive
Market Momentum
0.14
Positive
53.47
Neutral
43.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINV, the sentiment is Positive. The current price of 8.26 is below the 20-day moving average (MA) of 8.31, above the 50-day MA of 7.69, and above the 200-day MA of 6.16, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 43.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $587.02M | 2.27 | 21.47% | 2.76% | 17.07% | -8.81% | |
83 Outperform | $2.15B | 6.95 | 15.82% | 2.94% | 1.54% | -1.77% | |
82 Outperform | $6.62B | 8.27 | 24.70% | 3.02% | 7.22% | 39.87% | |
77 Outperform | $1.53B | 13.76 | 7.38% | 1.42% | 7.21% | -46.18% | |
77 Outperform | $532.95M | 3.04 | 21.12% | 3.00% | 14.75% | 3.95% | |
74 Outperform | $535.10M | 3.10 | 46.42% | 9.41% | 19.46% | -22.51% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
FINV
FinVolution Group
8.26
3.14
61.33%
YRD
Yiren Digital
6.72
1.52
29.23%
LX
Lexinfintech Holdings
9.28
7.41
396.26%
XYF
X Financial
10.82
6.83
171.18%
QFIN
Qifu Technology
40.75
23.28
133.26%
JFIN
Jiayin Group
10.09
3.68
57.41%
FinVolution Group Earnings Call Summary
Earnings Call Date: Nov 18, 2024 | % Change Since: 36.98% | Next Earnings Date: Mar 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong international growth and technological advancements, alongside a commitment to ESG initiatives and shareholder returns. However, challenges in the Chinese market and future funding cost reductions were noted as concerns.Highlights
International Revenue Growth
International revenue contribution increased significantly from 3.7% in 2020 to 10.3% in 2022, and expected to be around 20% in 2024. The number of new international borrowers reached 671,000, up 60% year-over-year and 43% quarter-over-quarter.
Technological Innovations
FinVolution presented its detection solutions for combating deepfake voice command scams and integrated larger-language models into its loan collection recovery process, improving the recovery rate and saving millions of dollars.
ESG Efforts and Small Business Loans
Empowered 447,000 small business owners with loans totaling RMB 15.4 billion during the quarter, up 25% year-over-year.
Operational Excellence in the Philippines
Transaction volume in the Philippines grew 137% year-over-year and 24% sequentially to RMB 838 million.
Shareholder Returns
Deployed USD 24.3 million to repurchase around 4.6 million ADS, with a total return of USD 686.1 million to shareholders through share repurchases and dividends.
Lowlights
Challenges in China
China's economic growth remained restrained, affecting the overall market conditions, although there is anticipation of improvements in the fourth quarter.
Funding Cost Reductions May Slow
Though there was a significant reduction in funding costs by 190 basis points, the expected rate of improvement in the fourth quarter might be smaller.
Company Guidance
During the third quarter of 2024 earnings call for FinVolution Group, several key metrics and strategic insights were discussed. The company reported a total transaction volume of RMB 52.2 billion and an outstanding loan balance of RMB 68.1 billion, showing year-over-year increases of 1.8% and 3.3%, respectively. International revenue contribution is expected to reach around 20% in 2024, up from 10.3% in 2022, with a strategic goal of achieving 50% by 2030. The international transaction volume grew to RMB 7.2 billion, a 29% year-over-year increase. FinVolution served 32.6 million borrowers, with 2.1 million from international markets in the first nine months of 2024. The company's funding costs improved by 190 basis points since the year's start, and the loan collection recovery rate rebounded to 88.5%. Additionally, FinVolution deployed USD 81.1 million for share repurchases in the first nine months, highlighting its commitment to enhancing shareholder value.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.