Jiayin Group (JFIN) AI Stock Analysis

348 Followers

Top Page

Jiayin Group

(NASDAQ:JFIN)

74Outperform

Jiayin Group's overall stock score reflects strong financial performance and attractive valuation, partially offset by technical indicators suggesting potential overbought conditions. The earnings call highlighted both growth achievements and financial challenges, necessitating careful attention to future developments.

Jiayin Group (JFIN) vs. S&P 500 (SPY)

Market Cap

$604.57M

Dividend Yield7.67%

Average Volume (3M)236.94K

Price to Earnings (P/E)4.1

Beta (1Y)0.71

Revenue Growth19.46%

EPS Growth-22.51%

CountryUS

Employees925

SectorCommunication Services

Sector Strength79

IndustryInternet Content & Information

Share Statistics

EPS (TTM)2.76

Shares Outstanding26,032,486

10 Day Avg. Volume187,501

30 Day Avg. Volume236,945

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.80

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Jiayin Group Business Overview & Revenue Model

Company DescriptionJiayin Group Inc. provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates transparent, secure, and fast connections between individual borrowers and financial institutions funding partners. It also provides referral services for investment products offered by the financial service providers; and software development, risk control, marketing support, and IT assistance services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes MoneyJiayin Group generates revenue primarily through service fees charged to borrowers and investors on its platform. The company earns a percentage of the loan amount as a service fee from borrowers upon successful disbursement of loans. Additionally, Jiayin Group receives management fees from investors for facilitating and managing their investments on the platform. The company's earnings are significantly influenced by its ability to attract a large number of active borrowers and investors, maintain high loan origination volumes, and manage credit risk effectively. Strategic partnerships with financial institutions and technology firms also enhance Jiayin Group's capabilities and contribute to its revenue growth.

Jiayin Group Financial Statement Overview

Summary

Jiayin Group demonstrates strong financial performance with significant revenue and profit growth, low leverage, and high return on equity. However, the decrease in free cash flow growth and need for careful cash flow management slightly offset these strengths.

Income Statement

Very Positive

The company shows strong revenue growth with a 67% increase from 2022 to 2023. Gross profit margin is robust at 63.2%, and net profit margin is also high at 23.7%. EBIT and EBITDA margins are healthy, reflecting operational efficiency. However, the company's performance should be monitored for sustainability of such growth.

Balance Sheet

Positive

The balance sheet shows a strong equity position with an equity ratio of 42.2%. The debt-to-equity ratio is low at 0.02, indicating low leverage. Return on equity is very high at 54.5%, highlighting strong returns for shareholders. The company has significantly improved its equity position over the years.

Cash Flow

Positive

Operating cash flow is positive and supports net income with a ratio of 0.30. Free cash flow growth is negative due to a decrease from the previous year, which could indicate potential liquidity challenges. Monitoring of cash flow management is advised to ensure ongoing financial health.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
6.00B	5.47B	3.27B	1.78B	1.30B	2.23B
	Gross Profit
3.47B	3.46B	2.71B	1.44B	1.06B	1.80B
	EBIT
1.09B	1.33B	1.18B	278.24M	229.10M	534.67M
	EBITDA
1.09B	1.34B	1.19B	447.63M	325.26M	552.38M
	Net Income Common Stockholders
1.15B	1.30B	1.18B	472.09M	252.88M	527.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
606.10M	370.19M	291.02M	182.55M	117.32M	191.77M
	Total Assets
2.53B	5.64B	3.02B	971.43M	525.37M	701.07M
	Total Debt
104.00M	47.96M	27.46M	35.24M	5.20M	35.22M
	Net Debt
-502.10M	-322.24M	-263.55M	-147.31M	-112.13M	-86.93M
	Total Liabilities
4.46B	3.26B	1.78B	945.68M	989.14M	1.44B
	Stockholders Equity
-1.93B	2.38B	1.24B	27.86M	-461.62M	-741.85M
Cash Flow		Free Cash Flow
0.00	358.05M	795.68M	181.77M	-36.35M	-1.32M
	Operating Cash Flow
0.00	389.59M	915.37M	184.54M	-35.51M	26.29M
	Investing Cash Flow
0.00	-105.85M	-157.25M	-126.22M	33.23M	-234.18M
	Financing Cash Flow
0.00	-193.48M	-86.10M	9.94M	10.60M	244.67M

Jiayin Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.40

Price Trends

50DMA

10.76

Positive

100DMA

8.79

Positive

200DMA

7.39

Positive

Market Momentum

MACD

-0.03

Positive

RSI

47.25

Neutral

STOCH

27.37

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JFIN, the sentiment is Positive. The current price of 11.4 is below the 20-day moving average (MA) of 12.21, above the 50-day MA of 10.76, and above the 200-day MA of 7.39, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 27.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JFIN.

Jiayin Group Risk Analysis

Jiayin Group disclosed 100 risk factors in its most recent earnings report. Jiayin 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

Jiayin Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JFIN	74 Outperform	$604.57M	4.12	38.42%	7.67%	19.46%	-22.51%
Sector *	58 Neutral	$26.42B	2.90	-10.89%	4.33%	2.18%	-46.94%
CMCM	53 Neutral	$111.60M	―	-24.55%	―	―	―
DOYU	49 Neutral	$208.49M	―	-5.43%	―	-24.10%	-953.50%
HUYA	47 Neutral	$756.57M	―	-1.59%	―	-20.51%	67.41%
SOHU	46 Neutral	$251.65M	―	-10.12%	―	-0.38%	-61.79%
ZH	46 Neutral	$341.01M	―	-3.92%	―	-9.07%	59.67%

* Communication Services Sector Average

Performance Comparison

JFIN

Jiayin Group

10.94

5.05

85.74%

SOHU

Sohu

8.15

-2.63

-24.40%

CMCM

Cheetah Mobile

3.64

-0.25

-6.43%

HUYA

Huya

3.37

0.25

8.01%

DOYU

DouYu International Holdings

6.57

5.11

350.00%

Zhihu

3.63

-0.21

-5.47%

Jiayin Group Earnings Call Summary

Earnings Call Date: Mar 27, 2025 | % Change Since: -5.79% | Next Earnings Date: Jun 5, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements in loan facilitation growth, borrower acquisition, technological advancements, and overseas expansion. However, these were offset by declines in net revenue and net income due to strategic shifts and increased operational costs. The company remains optimistic about future growth and profitability, supported by enhanced dividend policies and strategic investments.

Highlights

Strong Loan Facilitation Growth

In Q4 2024, Jiayin Group facilitated loan transactions totaling RMB27.7 billion, a 37.8% year-over-year increase, with loan facilitation service revenue reaching RMB1.1 billion, up 46.3% year-over-year.

Diverse Borrower Acquisition and Retention

The company added 2.774 million new borrowers in 2024, representing a year-over-year growth of 45.1%. The annual retention rate increased by approximately 7%, with potential churn user retention rate nearly 75%.

Technological Advancements

AI-powered risk control and customer service enhancements, including a 90% accuracy rate in real-time tech reminders and a significant improvement in document recognition efficiency.

Overseas Market Expansion

In Indonesia, loan volume saw a 74% year-over-year increase, while registered users grew by 131%. The company also optimized risk indicators and improved profitability in the Mexican market.

Increased Dividend Policy

The company plans to increase the annual cash dividend to approximately 30% of the previous fiscal year’s net profit after tax, up from no less than 15%.

Lowlights

Net Revenue Decline

Net revenue decreased by 12.2% from the same period in 2023, primarily due to the strategic downsizing of financial guarantee services.

Decreased Net Income

Net income for Q4 2024 was RMB275.5 million, representing a decrease of 25.1%, attributed to a higher base due to a one-off non-operational income in 2023.

Increased Marketing and R&D Costs

Sales and marketing expenses increased by 57% year-over-year, and R&D expenses increased by 8.1%, impacting overall profitability.

Company Guidance

During the Jiayin Group's Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance for 2025, emphasizing its optimistic outlook for business expansion and profitability. The company set a loan facilitation volume target range of RMB137 billion to RMB142 billion for the year, representing a significant year-over-year growth rate. For the first quarter of 2025, Jiayin aims for a loan facilitation volume of RMB35 billion, with a non-GAAP income from operations target between RMB0.57 billion and RMB0.63 billion. This reflects a focus on high-quality growth and profitability, supported by ongoing macroeconomic policies favoring consumer credit. Additionally, the company plans to increase the annual cash dividend payout from no less than 15% to approximately 30% of the previous fiscal year’s net profit after tax, underscoring its commitment to enhancing shareholder returns.

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.